How to Choose a White-Label Payment Gateway Vendor for Starting a PSP

If you’re seeking an entry point into the payments sector, establishing your own payment service provider (PSP) company may appear to be the most straightforward path. Nevertheless, the industry poses challenges with intense competition and intricate bureaucratic procedures, making it less hospitable to newcomers than initially perceived. Within the following discourse, we’ll delineate a strategy for initiating a PSP with no upfront development expenses, concurrently reducing processing costs by half through judicious software selection.

Why choose a white-label payment gateway solution?

There are various avenues to explore on your journey to becoming a successful PSP. You could embark on the challenging path of building your own payment gateway or consider a “ready-to-deploy” solution, yet one option stands out as a game-changer—reselling a white-label payment system under your brand. In this comprehensive exploration, we’ll dissect each option, offering a data-driven analysis to empower you in making an informed decision in choosing a payment gateway.

The allure of building your own payment gateway often captivates entrepreneurs, but the reality is stark. This option demands a significant investment in hiring a specialized team with expertise in diverse technologies. The associated costs, both in terms of salaries and development expenses, can range from $105,000 to $420,000, not to mention ongoing maintenance charges. While self-built gateways may suit established companies, startups and smaller ventures should carefully weigh the expenses against the benefits.

While less discussed, the “ready-to-deploy” solution presents itself as a licensed software copy, providing ownership to the end customer. This route offers a one-time payment advantage and allows customization on the client’s server, ensuring data security. However, the pitfalls are noteworthy, including exorbitant initial costs, the need for a dedicated server, a sluggish onboarding process, and ongoing maintenance expenses. 

In the realm of pragmatic solutions, choosing a white-label payment gateway emerges as a strategic move for those aiming to launch a PSP. This option provides a fully-scalable and brandable software solution that can be tailored to suit the specific needs of your business. 

Here’s why it’s a compelling choice:

Rapid deployment

White-label payment gateways revolutionize the speed at which you can penetrate the market and initiate comprehensive operations. Acquiring such a solution enables you to complete customization, fine-tuning, and subsequent deployment within a mere couple of months. In stark contrast, the development of your bespoke solution would inevitably span over a year to create a minimal viable product.

Cost efficiency

Creating a payment gateway from scratch is a financially demanding endeavor. The intricate process involves hiring specialists for design, development, and rigorous testing, followed by ongoing support to ensure seamless functionality. This undertaking necessitates substantial investment and the engagement of proficient professionals to secure essential licenses. Conversely, opting for a white-label payment gateway drastically reduces costs, with solutions starting from $80,000 if you choose the on-premises option or from $2,500/month for SaaS. Not only does this choice provide cost-effectiveness, but it also includes customer support and assistance from knowledgeable vendor specialists.


The creation of a payment gateway demands more than just competent developers, it requires the expertise of system architect-level professionals to design a truly functional solution. The challenge lies not only in finding such specialists but also in the uncertainty of whether all the necessary nuances for smooth operation will be considered. Opting for a white-label payment gateway grants you access to a proven solution with a track record of successful use cases. Additionally, suppliers of such software extend their support to encompass hardware selection and compliance with regulatory documents in the US, UK, EU, and other countries. Attempting to attain a similar level of experience and expertise independently would consume significant time and financial resources.


A pivotal advantage of the white-label payment gateway lies in its exceptional customizability to align with your business needs. While custom software offers similar flexibility, the associated costs are considerably higher. With a white-label solution, you receive a payment gateway equipped with fundamental functionality, and additional features can be seamlessly integrated to meet your specific business requirements or project vision. This ensures a tailored solution without the exorbitant expenses associated with building a fully customized system from the ground up.

Key parameters to analyze for selecting the right white-label gateway vendor

When choosing a payment gateway provider, it’s crucial to consider several key factors to ensure that the chosen solution aligns with your business needs. With a multitude of solutions available in the market, the following factors serve as a guide to help you make an informed decision.

Align with your business model

Tailor your choice of gateway to your business model. For instance, if your focus is solely on e-commerce acquiring, opt for solutions specifically designed for this niche, ensuring higher quality functionality. 

Multifunctional gateways like Hips and PayPipes cater to diverse products, while orchestrator-model gateways such as Corefy, Akurateco, and Magnius offer integrations with various acquirers and PSPs.

Acquirer-provided gateways like Decta offer a quick and cost-effective solution for running a PSP. However, it comes with the drawback of dependency on the white-label payment gateway provider, limiting access to multi-acquiring.

Your long-term vision for growth is also crucial in determining how to choose the best payment gateway. 

For instance, if you plan to transform your PSP business into an acquiring entity, choose a payment gateway vendor that facilitates such a transition. Boxopay payment software platform, for instance, allows for a seamless transformation from PSP to an acquirer, providing an easy and cost-effective transition without additional expenses.

Evaluate essential elements 

Ensure that the process of how to choose a payment gateway includes key elements essential for reliability. These elements encompass the processing core, API, payment page, administrative back office, payment analytics, basic accounting, contracts, financial accounting, multicurrency support, payment routing, merchant’s back office, transaction matching with acquirers, scoring anti-fraud, monitoring, card storage/vault solution (SSM), 3-D Secure 1.0, and 3-D Secure 2.0 Server.

Choose a deployment model

Consider the hosting model that best suits your needs when determining how to choose the right payment gateway. While most white-label gateways are offered on the Software as a Service (SaaS) model, hosted on the vendor’s servers, a few vendors provide on-premises deployment. 

It ensures greater control over data, technology, features, and security, making it advantageous in the long run. Boxopay is an example of a vendor offering on-premises hosting with a software lease model, allowing for seamless scalability and reduced capital expenses through a monthly transaction-based fee. This solution combines the advantages of the ‘ready-to-deploy’ and white-label models. You become the sole owner of the software, maintaining complete control over your data, similar to purchasing a license. However, there is no upfront payment required, instead, you pay only for successful transactions once your business is operational, aligning with the structure of the SaaS model.