What Are the Different Types of Payment Gateways Integrations?


With the growth in popularity of e-commerce, the volume of online transactions has also seen a steep rise. The year 2021 saw a whopping 44 billion digital transactions in India, a number that is bound to see another big jump before the end of this decade. All these transactions take place through an online payment solution. The increasing demand for online payments has also forced businesses to adapt to systems that accept online payments.

The most common method to accept digital payments commercially is by using a payment gateway. However, for businesses to automate their payment collection process, integrating with a reliable payment gateway is non-negotiable. To give some more respite to the merchants, a range of payment gateway integrations can be opted for to minimize the hassle.

What is a Payment Gateway?

It is an electronic fund collection system that facilitates money transfer between the customer and a merchant. The customer can choose to make the payment through credit card, debit card, UPI, mobile wallet, or other supported payment modes. After confirming their order, the customer is directed to a payment gateway page to choose their preferred payment mode and enter the payment information. The gateway accepts the data from the customer and passes on the same to the issuing bank. The issuing bank processes the payment to the business after successful verification of the payment information.

All this happens seamlessly within seconds via an integrated payment gateway. Zaakpay, the best payment gateway for India, comes with several features that make it suitable for small businesses.

Types of Payment Gateway Integration

Businesses can integrate the payment gateway into the business in any of the following ways:

  • Hosted Payment Gateways

These payment gateways are hosted on a separate server owned by the payment processor rather than being hosted directly on the business website. In this case, the checkout page of the business redirects the customer to the gateway page to enter the necessary payment details. Post the successful payment, and the customer is directed back to the business website.

Generally, this online payment solution is more secure because the payment information is being accepted on a different server from the business website. Usually, the processor’s server remains PCI DSS compliant and offers more data protection. Even if the business website is somehow compromised, the payment information of the customer will remain safe.

One of the significant drawbacks of hosted payment gateways is the need to be redirected several times. Customers usually do not prefer being redirected much because it takes more time and complicates the process. Often, it might also make the customers feel insecure. Customizing the hosted gateway with a similar branding as the original website can make the customers feel at home.

  • Self-Hosted Payment Gateways

This is a type of payment gateway that is hosted on the website of the business itself. The payment information is collected on the same website and sent over to the payment gateway server. However, the customer doesn’t get redirected several times and can complete the entire checkout and payment process within the same website and server.

From a customer’s point of view, this provides a better and quick payment experience because everything happens on the same website. This also gives more customization control to the merchant in terms of look and data collection. The drawback, however, is that technical errors can be pretty cumbersome. The gateway would also go down if the business website goes down, and getting everything back can be difficult.

Moreover, a self-hosted gateway usually lacks the customer support that other types of gateways enjoy. The security liability also lies on the merchant. The merchant has to keep track of several security measures to protect the payment information of the customers. Integrating a self-hosted gateway into the business website also requires more technical expertise.

Zaakpay, the best payment gateway for India, comes with easy integration of pre-built plugins that are compatible with the most common website platforms.

  • API Hosted Payment Gateways

This is another type of online payment solution in which the customer enters the payment information like the card details directly on the checkout page of the business. The payment is then processed with the help of an Application Programming Interface (API) or HTTPS queries. This also requires no re-direction and makes the process simple through its one-page checkout experience.

Similar to self-hosted payment gateways, this also comes with immense customization options. The merchant can give a unified look to the checkout page and make the purchasing experience consistent with the rest of the website. This also has a similar drawback, though.

Since the sensitive information is entered into the business website, the merchant must acquire the PCI DSS (Payment Card Industry Data Security Standard) and SSL (Secure Sockets Layer) certifications. These ensure absolute protection for the customer’s information in case of a cyber-attack.

  • Local Bank Integration

In this online payment solution, the customer is redirected to the payment gateway website, which belongs to the local bank. They have to enter their payment details in the gateway there. After a successful transaction, they are taken back to the business website. The customer is also notified about the payment.

This is usually very easy to set up at nominal costs, catering to small businesses. However, this lacks several essential features like recurring payments making this unsuitable for medium or big businesses and wholesalers.


Based on the business requirements, the merchant should decide which payment integration option would be most suitable. The best payment gateway for India and the several businesses flourishing here is Zaakpay. Its customer-centric approach and features provide an innovative and seamless payment process that is bound to boost sales, revenue, and conversions.

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