Q. In which of the following ways do payment aggregators differ from payment gateways?

[A] Payment aggregators focus on physical point-of-sale transactions, while payment gateways handle online payments.

[B] Payment gateways facilitate transactions between customers and merchants, while payment aggregators consolidate transactions for multiple merchants.

[C] Payment aggregators offer a wide range of payment methods, while payment gateways specialize in specific payment options.

[D] Payment gateways provide credit services, while payment aggregators offer debit solutions.

Answer: B
Notes:

Explanation –

Payment Gateway: A payment gateway is the technology that securely passes a customer’s payment information (credit card, debit card, etc.) to the payment processor and communicates the approval or decline of the transaction back to the merchant. Payment gateways primarily serve as intermediaries between customers and merchants for individual transactions, handling the secure transmission of payment data during online purchases.

Payment Aggregator: A payment aggregator simplifies the process for businesses to accept online payments. They gather multiple merchant accounts under one umbrella. Businesses don’t need to get individual merchant accounts and integrate separate payment gateways. Act as a third-party facilitator that manages and processes merchants’ transactions under one roof. Offer a quick onboarding process but with more strict parameters and less processing freedom. They typically provide a range of payment options to customers, including credit and debit cards, bank transfers, and e-wallets.

Source: Forum IAS

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