The Internet, mobile and computer technologies now rule the whole of our planet. Increased internet connectivity is propelling the e-Commerce business around the world which requires setting new revenue and customer engagement milestones. 

Running a successful e-Commerce business is dependent on several factors, however, a payment gateway is an essential component of every e-Commerce firm in order to conduct smooth transactions and get customers’ satisfaction. It’s almost impossible to run an ecommerce store successfully and take advantage of online payments without a payment gateway and to enable secure payment authorization for your e-Commerce site, you’ll definitely need a payment gateway.

Let’s take a look at two most common payment gateway options that have been used today by most of ecommerce businesses.


1- In house Gateway (aka Self-Hosted)

In short, it’s the payment gateways that are hosted on your own server.

In this type all information from users and customers are gathered on the merchant’s website and when you request information, the collected data is transferred to the payment gateway’s URL. Many gateways require a specific payment data format, while others require a hash key or a hidden key to complete the process.

Pros of In house Gateway

Flow that can be customized – the merchant can keep track of the payment process all the time and make changes when needed with great versatility.

Excellent customer service – in-house systems can cater to your business’s needs and requirements more closely, thus presenting better customer service to your client when it comes to the payment process.

Cons of in house Gateway

No technical support – Self-hosted payment gateways usually do not have a technical support team. If there’s a technical issue for any reason, you’ll have to figure out how to solve the problem by yourself. Anyway, it lets you work from the home so you won’t be limited to a physical location as well.



2- Third Party Payment gateways

A third-party payment gateway is a service that allows you to accept payments from customers over the internet without first opening a merchant account with a bank. To put it another way, third-party payment gateways enable retailers to completely avoid the necessity for a merchant account.

Pros of Third Party Payment gateways

Lower cost: It’s no secret that setting up a merchant account and keeping it running may be expensive but with a third party payment gateway, you never pay too high for the service.

There are no monthly fees: Businesses that use merchant accounts are charged a monthly “subscription” fee but it’s free for third party payment gateways. 

Setup is simple: The creation of a merchant account can be time-consuming and unpleasant, requiring a lot of paperwork and verification before you’re up and running, however, with a third party payment gateway, it’s as easy as piece of cake. 

Cons of Third Party Payment gateways

They’re not as well-known as more typical merchant account services right now, which means they might not appeal to all clients, particularly those in Gen X generations. Using third-party processors like PayPal or Zelle is, nonetheless, second nature to millennials. These tech-savvy shoppers grew up with computers and online shopping, and their purchasing and payment habits will undoubtedly shape the online retail landscape in the future.



Payment gateways have become an essential part of the customer experience today and customers want quick, frictionless payment processes when and when it is convenient for them. Due to these needs, major businesses must have payment gateways that are versatile, easy to integrate, and scalable to changing client demands.

IPSI, a highly adaptable dynamic payment service provider, offers the advantages of strategic bank independence as well as flexible customer-centric processing. This gives merchants back control over their payment approach, which is a win-win situation for both them and their customers.

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