The Role of Gateways in Payments
These days, conversations around payments have been picking up the pace and evolving quickly as new technologies like EMV, NFC, Apple Pay and others get introduced, and new trends firm up. What many don’t know is that none of this is possible without another piece of technology—the Gateway—being at the center of it all. Gateways are an integral part of the global payments ecosystem, according to a recent report from Technavio, the global payments Gateway market will likely grow at a compound annual growth rate of 14% between 2016 and 2020 due to a growing focus on customer satisfaction, adoption of advanced technologies and a shift towards digital commerce.
What Exactly is a Gateway?
A Gateway is essentially a platform that service providers deploy to connect and route payment information from to the points of sale to the necessary processors. Gateways connect multiple processors (often just a few, but in Apriva's case, a great many), maintaining those connections and payment card industry certifications, reducing the scope of connections needed for any given service provider.
Why Use a Gateway?
Independent software vendors (ISVs) have two options when integrating payments technology into their solution: they can use a Gateway to connect with processors, or they can set up their own direct connections to the numerous payment processors. Direct connections typically require substantial development work to establish. Each individual connection must be certified and maintained individually and compliance with PCI data security standards must be kept up-to-date, all while incorporating the card brand and processor bi-annual update releases.
Gateways, on the other hand, provide several benefits to ISVs. First and foremost, a Gateway creates a single connection point to many processors, enabling ISVs to serve a broader customer base who may have very different payment needs or desire choice for processor partners. Additionally Gateways providers take on the maintenance, certifications and compliance necessary for these connections, simplifying the ongoing work of the ISV development teams.
What Makes Apriva’s Gateway Unique?
Apriva’s Gateway supports more processors than any other Gateway provider with over 35 connections to North American processors. Apriva’s Gateway technology also supports campus cards, vending and a wide array of traditional payments terminals. Additionally, Apriva offers semi-integrated solutions that can interface with existing POS solutions to support EMV transactions quickly, with less time and effort to integrate. Apriva’s Gateway connections also include preferred rates for Visa and MasterCard debit transactions, further validating the ROI of connecting to a Gateway. Furthermore, we are continually adding support for new payments technologies as they emerge, future-proofing their solutions and continuously updating PCI compliance for all processors and card brands.
Will Gateways Be Around in the Future?
Gateways are here to stay. As payments change, it’s Gateways that are adjusting to accommodate these changes on the backend and make deployment of new technologies possible. Without them our payment experience would be severely impacted as it would take longer for new technologies to be offered and the development effort would put a significant strain on various points within the ecosystem.
Want to learn more about Gateways? Read our white paper for more information.