Due to the evolution of payment methods, collaborative payment processing has become a new standard recently. When companies plan on selling online, they will need payment processing platforms and it should be scalable as well.
When the volume is low, integrating with a third-party payment gateway makes more sense. However, when the sales increase, the original payment gateway cannot accommodate all the needs and hence, they make use of several partner gateways which offer them different functionalities. This is not viable in the long run and hence, companies decide on developing an in-house payment gateway solution, which requires a lot of labor and time.
Instead, collaborative payment processing helps businesses to benefit mutually from their resources. This is achieved by the integration of multiple companies to use the same payment technology and facilitate efficient payments on the payment gateway cloud, which is beneficial for all participants.
Advantages of cloud payment gateway
The diagram below illustrates features of hosted and on-premise payment gateways and the advantages of cloud payment gateway.
Learn more about this topic in an article about collaborative payment processing at Paylosophy Blog.