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How Much Will It Cost in 2024 to Construct a Payment Gateway?

Businesses are seeking innovative methods to capitalize on the shift from in-person to virtual contactless payments
June 5, 2024

Experts predicted that the value of all digital payment transactions will exceed $15 trillion by 2027 due to the widespread use of contactless transactions. As a software developer or company owner, you can take advantage of this trend and make money by learning how to build a gateway solution.

A Payment Gateway: What is It?

A "middleman" between customers and retailers is a payment gateway. It's a piece of software that enables online transactions by securely depositing money into the merchant account by sending sensitive client data to payment processing partners.

Moreover, a payment gateway performs functions beyond data transmission. Initially, it confirms that there is enough money on the customer's card, digital wallet, or other payment mechanism to support the transaction. Next, it makes use of encryption technology to guarantee that private data handled inside the system is protected. Lastly, a payment gateway shields the retailer from potential fraud. These kinds of systems usually include chargeback and fraud protection mechanisms to shield customers from losing money.

Who Needs a Custom Payment Gateway?

Every retail and e-commerce business will eventually need financial app development services. Of course, the cost for payment gateway integration may not be small, but it pays off. Regardless of sector or specialty, many organizations might gain from opting to build their own payment gateway when it comes to bespoke payment systems.

The following businesses need to think about developing a payment system with unique features:

  1. Huge companies striving to finish all of their business procedures, including preventing detours and having total control over their payment processing procedures.
  2. For online transactions, e-commerce and retail organizations (including small and mid-sized enterprises) are seeking to modernize their internal payment systems, mobile app checkout procedures, and website checkout pages.
  3. IT firms are diversifying into the payment services space by providing branded systems or white-label solutions to businesses that want to process Visa, Mastercard, or other credit card transactions.
  4. Financial entities such as credit unions and banks.

Do Payment Gateways Maintain Security?

During the payment processing procedure, payment gateways have the responsibility of protecting sensitive financial data. That's why they are safe. Let's examine the protocols that payment gateways use most often to demonstrate the technical lengths they take to ensure security.

PCI DSS-Compliant Gateways

Entities involved in payment processing are required to adhere to a set of security rules known as the Payment Card Industry Data Security Standard (PCI DSS). Payment gateways are a part of this. Verify a provider's PCI compliance before working with them. Additionally, you want to find out how they, as your supplier, may assist your company in obtaining and preserving PCI compliance.

Data Encryption

The process of transforming readable plaintext data into encoded ciphertext is known as data encryption. Only the owner of the encryption key will be able to decode this content. Furthermore, this security feature discourages dishonest actors from obtaining cardholder information since it renders the data unintelligible to anyone without the encryption key.

Secure Electronic Transaction (SET)

Sensitive cardholder data is protected during transmission over online electronic portals according to the Secure Electronic Transaction (SET) protocol. SET protects consumer cardholder data from hackers and other bad actors, as well as merchants, during transmission by using encryption and hashing techniques.


Sensitive card information is replaced with non-sensitive tokens via credit card tokenization. Only a tokenized mapping system allows access to the stored sensitive data. This indicates that without the independently stored data from the tokenized system, the original data is inaccessible. Sensitive data is thus not compromised in the event of a tokenized data security incident.

Secure Socket Layer (SSL)

Since the internet is an unsafe network, Secure Socket Layer (SSL) technology safeguards the connections between web servers and web browsers. SSL encrypts the connection between servers and browsers, guaranteeing the security of the data sent between them and protecting online interactions.

Transport Layer Security (TLS) is an evolution of SSL, which was first presented by Netscape in 1995 as a way to protect online transactions between companies and customers. If your payment gateway says it uses TLS, it offers the same security features as SSL.

What is the Price of Developing a Gateway for Payments?

When estimating the payment gateway's upfront costs, you should take into account the gateway's creation, upkeep, PCI certification, state-of-the-art technology, licensing, partnerships, regulations, and other charges. A minimum viable product (MVP) for a payment gateway is projected to cost between $150.000 and $250.000. The cost of developing a payment gateway will increase with its feature set.

Building a payment aggregator requires time as an extra resource. Starting from scratch, it might take six months to a year.

Your team is an additional factor in the gateway's development costs and, eventually, its success. The wages of the development team eat up a large portion of the payment aggregator's development budget. Lastly, the cost of employing developers is contingent upon several aspects, including the candidate's level of technical knowledge, the technology stack you choose, and the project's engagement model.

Ultimately, if you have the time and resources available, developing a payment gateway will benefit you in the long term since it will reduce subscription costs, boost income, and allow you to tailor the infrastructure to your specific company's needs. However, you don't have to start from scratch when setting up your payment gateway if you choose this option.


The process of developing a payment gateway in 2024 is complex and requires striking a careful balance between user experience, security, compliance, and technical innovation. Payment gateways are essential to the contemporary economy, even though they may be expensive. A comprehensive cost study that is adapted to the unique requirements and market positioning of the enterprises entering this field is crucial. This includes long-term operating expenditures that will mount as the gateway grows and changes, in addition to the initial construction and setup charges.

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