How to create a payment gateway?

How to create a payment gateway

If you decide to build your own payment gateway software rather than using one that is already available, keep in mind the following difficulties. Developing from scratch can benefit a wide range of market players, from startups looking for a chance to propose payment gateways in an underserved region to merchants looking for methods to reduce payment service fees. Those who are solely interested in developing payment method integration services will benefit from this article.

This guide will aid our audience in how to create a payment gateway.

What is a Payment Gateway?

A payment gateway functions as a “middleman” between a customer and a vendor. This program enables online transactions by sending information from the client to the acquirer and then returning either acceptance or decline to the client. However, a payment gateway does more than just transfer data.

First and foremost, it ensures that the customer has sufficient funds on his card (or digital wallet, or other payment method) to cover the transaction. Then, using encryption, it guarantees complete protection of any sensitive data processed within the system.

Finally, a payment gateway exists to safeguard the business from potential fraud. Major credit card companies have set fraud and chargeback thresholds that are punishable. As a result, payment gateways typically include fraud and chargeback prevention systems to assist businesses in avoiding payment fraud.

Why Create a Custom Gateway?

There are numerous ready-made payment methods that you can easily integrate into your shop. In the previous piece, we looked at the top payment gateway providers and provided a credit card processing comparison chart. However, none of these options will give you complete control over the payment procedure. Furthermore, there will always be things you want to change or introduce.

As a result, we chose to share our vision of building a custom gateway. We discuss the benefits and drawbacks of such an undertaking, as well as some tricky moments.

Payment Supplier Vs. Payment Gateway

It is critical to grasp the distinction between a payment gateway and a payment provider. While the first is software, the ability to use that software for its intended goal is the second.

So, just because you wrote a working program doesn’t mean you can immediately embed it into your website or offer it to other merchants. First, you must complete the certification procedure and establish a connection with a payment processor. It should be noted that developing software is not a difficult job. The licensing process, on the other hand, can take months or even years. You can only function as a provider after you have obtained all of the necessary permissions.

How to Create a Payment Gateway?

The exact steps to establish a payment gateway will depend on the needs of your business, but most businesses will use a process similar to the one outlined below.


Creating an idea for a payment system is only the first step; you’ll still need to consult with experts to see if the plan is viable or needs to be tweaked.

If you want to create a competitive financial payment system, you must conduct extensive market study to identify existing opportunities and areas where your competitors are vulnerable.


It’s time to hand over your concepts to the designers now that they’re more cohesive. A staff of experienced UI/UX and graphics designers can assist you in creating the interface and brand identity for your product. They can also assist you in developing a functional prototype for use as a proof of concept. After several iterations, you’ll have a viable product design that developers can begin constructing.


During this time, the fundamental infrastructure of your payment system will begin to take shape. The material design components from the prototypes will be collected by the development team and used to code the product. Developers can also incorporate third-party APIs in accordance with industry standards, depending on the technical requirements.

Most businesses manage front-end and back-end development concurrently, while others begin with front-end development before moving on to the back-end stage. Whatever method you prefer, always use the proper tools to build a solid system infrastructure for your gateway service.

Quality Control

Uncrushed bugs and poor error handling can doom your payment system before it even starts and/or cost you a lot of money afterward. Allow your QA specialists to rigorously test the software to ensure that everything is in perfect working order to avoid these additional fees. Following testing, they should create a comprehensive report for future changes.


If the flaws are critical, revisit some of the early stages of development to close all gaps. Minor faults can be addressed by DevOps teams to make the payment gateway flawless. Don’t neglect compliance standards when optimizing the final version.

Product Introduction

You may have time to release the beta version for user input depending on your timeline. Prepare to debut it as a standalone software program after making the changes, or offer it as a white-label software solution to other financial institutions.

Maintenance and Assistance

After the product is released, you must continue to assist the payment system’s users. Create a staff of live support agents to answer inquiries and resolve conflicts for users. Bots can also answer commonly asked queries. Your developers should also keep working on updates to keep the platform operating as smoothly as possible.

Create Payment Channel Advantages

  • Over time, monthly and per-transaction costs will be reduced.
  • Complete authority over payment processing, as well as the ability to develop your own custom features
  • You can earn extra money by selling your payment portal services to other businesses.

Create a Payment Channel Disadvantages

  • Significant start-up expenses, including all necessary certifications, developer fees, and audits
  • Long setup time between development and UX testing, as well as continuous maintenance
  • More manpower is required than an out-of-the-box option.
  • Your entire responsibility for security rests on your shoulders.


Creating a custom feature-rich payment system is a sure way to establish your business as a trusted name in fintech. Combine brainstorming with thorough study to determine the type of gateway you want to create, and then use the tips in this article to fine-tune your product roadmap. Don’t neglect testing and compliance standards when designing your own gateway.

Make the system scalable and secure enough to handle massive transaction volumes securely – as essential as any other aspect, if not more so. SSLCOMERZ is the country’s largest payment gateway in Bangladesh

Further Reading: Top 10 Best Payment Gateways in Bangladesh

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