| Aspect | Payment Aggregator | Payment Gateway |
|---|---|---|
| Definition | Provides a unified platform for multiple merchants to accept payments without requiring individual bank accounts. | A technology that facilitates the secure transfer of payment data between the merchant, acquirer, and payment processors. |
| Merchant Account | Does not require individual merchant accounts; uses a shared account. | Requires each merchant to have their own dedicated merchant account. |
| Setup Complexity | Easy and quick to set up; ideal for small to medium businesses. | More complex setup; better suited for larger enterprises. |
| Transaction Settlement | Collects funds on behalf of merchants and settles them in batches. | Directly routes payments to the merchant’s account. |
| Security Compliance | Ensures compliance but typically shares security infrastructure across multiple merchants. | Offers higher control and customization for PCI-DSS compliance. |
| Cost Structure | Generally charges higher transaction fees due to shared infrastructure. | Lower transaction fees but may include setup and maintenance costs. |
| Customization | Limited customization options. | Highly customizable for unique business needs. |
| Use Cases | Suitable for startups, small businesses, and businesses with low volumes. | Preferred by larger enterprises with high transaction volumes or specific payment needs. |
