The list of such concepts as hosted payment gateway, licensed payment gateway and white label payment gateway can now be continued by the new concept of payment gateway cloud. Payment gateway cloud concept emerged only recently, as a result of evolution of customer needs and respective payment technologies.
For a startup business traditional payment gateway integration can be the most obvious and easy-to-implement payment processing solution. A larger business with more complicated needs may find, that the best payment processing solution a hosted payment gateway, dedicated specifically to its needs. If this business decides to follow a payment service provider or payment facilitator model, it may find that it needs more control of the process. For such cases white label payment gateway may be the best choice. Licensed open-source on-premise payment gateway solution is still, more customized, than a white-label one.
A specific problem of large businesses, that have to process payments, provision sub-merchants and constantly increase the number of back ends, is the need for implementation of new integrations and certifications (pci dss certification, EMV certification, certifications with new processors). These processes are really costly, time-consuming, and labor-intensive. Payment gateway cloud (a bit similar to VPS cloud using respective cloud software) is a solution, allowing different users of the same payment technology (cloud members) to use each other’s local integrations and certifications. As a result, cloud members can enjoy all the benefits of collaborative or cloud payment processing.
Read more about payment gateway cloud in the respective article on Paylosophy.