How Do Online Payment Platforms Differ from Services?

Not all online payment platforms are created equal. Broadly, the digital payment ecosystem can be broken down into several categories:

Payment Gateways: These serve as the bridge between a merchant’s website and their payment processor. Popular gateways include Authorize.Net, Razorpay, and PayPal.
Payment Processors: Companies like First Data or TSYS handle the actual movement of funds between banks.
Payment Aggregators: These bundle merchant accounts under one umbrella, making it easier for small businesses to start accepting payments. Stripe, Square, and PayU fall into this category.
Digital Wallets: Mobile-first platforms like Apple Pay, Google Pay, and so on allow consumers to pay quickly using stored credentials.
Integrated POS devices: Solutions like Valor PayTech or Clover combine hardware and software to accept both in-person and online payments from one device.

Modern online payment platforms often combine several of these functions into a single, unified experience – streamlining operations and reducing setup complexity.