How is the Payment Aggregator different from Payment Gateway? | Economy Notes UPSC

How is the Payment Aggregator different from Payment Gateway?

A payment gateway is a software application that connects an online store or merchant to a payment processor, allowing the merchant to accept payment from a customer.

Payment aggregators, on the other hand, are intermediaries that provide a single platform to connect multiple merchants to different payment processors.

The main difference between a payment aggregator and payment gateway is that the former handles funds while the latter provides technology.

Payment aggregators can offer a payment gateway, but vice versa is not true