The Fintech industry is booming. The complexity of payment processes has increased dramatically over the past decade. ApplePay, GooglePay, 3DS 2.0, tokenization, crypto payments, QR code payments and many other streams and features are currently in high demand in different parts of the world. In addition, new features and payment methods are constantly appearing; therefore, the development and maintenance of the payment gateway or platform can be considered extremely difficult without the proper technical knowledge and expertise. At the same time, entrepreneurs around the world want to take advantage of business opportunities in the fintech industry to stay ahead of the competition.
What if I’m already in a payment processing business and I’m struggling with the day-to-day technical challenges of maintaining the payment gateway? I’m probably even considering an option to switch to a white label solution.
You can switch to a white label payment gateway at any time. Moving large volumes of payment data to a whole new platform isn’t easy, but with the right white-label payment software provider, it won’t be a problem. Let’s find out what motivates companies to switch from their own payment gateway to a white label provider.
Main reasons to make the switch
Truth be told, not all business owners are completely happy with the in-house payment gateway. When building such systems, companies have often taken shortcuts and failed to involve business analysts and software architects, leading to an array of unnecessary dependencies. Thus, further optimization and scalability of the system cannot take place due to old technologies, lack of documentation and complexity. But there are other reasons why business owners ultimately choose a white label payment gateway.
You must constantly update and develop your own payment solution to meet ever-changing market demands. And if the technologies behind your system are outdated, finding DevOps developers and engineers who can solve your problems becomes a real challenge.
Payment systems need regular updates and maintenance services, so it’s best to have in-house developers to resolve technical issues quickly. But hiring and managing an in-house development team requires massive investment. Not to mention that the global talent shortage in the world makes the developer market a hot place.
Custom payment platforms are difficult to scale because often they weren’t designed for it. Additionally, scaling a custom solution not only requires a particular set of skills and expertise, but also requires a hefty budget that can be difficult to afford even for the largest companies.
The business world is changing at a breakneck pace, offering new market approaches and opportunities. With custom payment gateways, it’s quite difficult to keep up with all of these changes, including things like integrating new wallets, Apple Pay, and connectors to third-party platforms. On the contrary, a white label payment solution is updated with the latest trends to provide better service to customers.
Sometimes companies need to pivot and change their development vector. For example, you were selling DIY sets in the Asian market, but today you decided to change direction and start selling pots in the Latin American market.
In-house designed payment solutions will require more time to integrate new payment methods and fine-tune the payment gateway based on country or industry requirements. In the case of using white label solutions, all technical aspects fall to the team of white label providers, leaving you to focus with minimal effort.
When you use custom payment solutions, no support team can help you, which makes the cost of the customization process skyrocket. Make sure your white label provider has top-notch support experts who aim to actually help you.
By choosing a white label solution, you can finally get rid of outdated payment infrastructure and enjoy the ability to focus more on solving technical problems than on business development.
These are just a few of the reasons why a range of businesses often consider switching from their own payment gateways to white-label payment orchestration platforms. A robust new white-label solution can be a real gem for your business, allowing greater flexibility and adapting to ever-changing market trends.
How to switch to a white label payment gateway?
No matter how long you’ve been using your own payment solution, you can always upgrade to a white label payment gateway. However, the changeover process is not a matter of days, especially when your business has years of transactions that need to be moved to a new payment platform. When switching, it’s best to use a new payment system and your old solution at the same time to streamline the transfer process. Here’s how to switch to a white label payment gateway solution:
Also, it’s best to test your white label solution. Check if your payment orchestration provider has a starter plan that allows you to get all the features you need and test the product at a reasonable price.
During the transition period, you can expand the integration from the old gateway to the white label one. This lets you use both systems for a while. During this period, you will be able to smoothly reintegrate all your merchants into the new platform. You can also ensure data integrity by using this connector to replicate all transactions in both systems.
Transferring years of transactions can take more than a few days or even months, in case you plan to do it manually. Some providers have a unique set of features that allow a single massive data transfer.
Once all these steps are completed, you are ready to leverage robust technologies, infrastructure, and expertise with the white label platform as your own software. Moving to a white label payment gateway is not a magic wand, but rather an effective change that will help you focus on expanding your core business globally, instead of fixing technical issues and managing a technical team.