The cost of launching such a project depends on many factors. And to understand them, you decided to read our new article. Therefore, we do not waste time — we will consider the payment gateway development cost.
How much does it cost to build a payment gateway?
The cost of creating a payment gateway depends on several key factors:
- project scale;
- geography of activity;
- technical requirements;
- required licenses;
- security costs and compliance with regulatory standards.
On average, the cost of building a payment gateway is anywhere from $200,000 to $1,000,000 or more.
1. Software development
Creating an API, configuring servers, and integrating with banks and payment systems costs between $100,000 and $500,000.
Implementation of the PCI DSS standard, tokenization, data encryption and anti-fraud systems – an additional $50,000-$200,000.
Stress tests, performance checks, and standard compliance costs between $20,000 and $50,000.
If you want to know more about tips for secure online payments, check our new article.
2. Legal and regulatory costs
Company registration: $1,000-$10,000
Sign up for Fin CEN as Money Services Business (MSB) and get licenses in each state (up to $500,000).
Development of agreements, privacy policies, and terms of use – from $20,000 to $50,000.
3. Technical infrastructure and equipment
Servers, data centers, or cloud-based transaction processing solutions – $10,000-$50,000 per month
Monitoring, analytics, and customer support tools – $10,000–$30,000 initially.
4. Partnerships with banks and payment systems
Initial fees for integration with Visa, Mastercard or other networks – $5,000-$50,000
5. Operating expenses
Team salaries: $10,000-$50,000 monthly
Website creation, advertising, customer acquisition – $20,000-$100,000
6. Reserve fund
To cover risks (chargebacks, fraud) — $50,000-$200,000
For a small local payment gateway, the cost can be around $200,000–$500,000. For a global or regional gateway with high security standards and advanced functionality — more than $1,000,000.
How much does it cost to integrate a payment gateway?
The cost of integrating a payment gateway typically range from $5,000 to $50,000, but may be higher depending on the scale and requirements of the project. Therefore, we have prepared a detailed overview for you so that you can understand and plan your expenses.
1. Development and configuration costs
If an e-commerce platform (such as Shopify, WooCommerce, or Magento) supports ready-made plugins for the selected gateway, integration can cost anywhere from $5,000 to $10,000.
If you need to develop a unique API, adapt business processes, or integrate with non-standard platforms, the cost can reach $10,000–$30,000.
For mobile apps, you need to create a special set of integration tools. The cost of this process can be between $15,000 and $50,000, depending on the complexity.
2. Payment gateway fees
Although payment gateway integration cost is a one-time expense, it is important to consider operating costs. Most payment gateways charge a transaction fee, usually 2-3% + $0.10-$0.30 per payment (for example, Stripe, PayPal, or Authorize.Net).
3. Testing and optimization
After integration, it is significant to conduct thorough testing, which can cost between $2,000 and $5,000.
4. Technical support and updates
Most payment gateways are constantly updating their APIs, and maintaining compatibility may require regular intervention. This implies support costs of $1,000–$5,000 per year.
Also you can check the difference between payment gateway and service provider on a PayAtlas` website.
How to create your own payment gateway?
Starting your own payment service provider is a multi-level process that requires technical knowledge, compliance with legal requirements, and integration with financial institutions. To successfully develop a payment gateway, you need to go through several stages.
Stage 1. Create a payment gateway concept.
This includes market research via PayAtlas payments, analyzing the needs of businesses and customers, and planning the functionality of your product. You have many payment options that your gateway can support. For example, cards, bank transfers, e-wallets, or cryptocurrencies.
Stage 2. Technical infrastructure development
What do you need? That's right, you need a secure and scalable platform that provides real-time payment processing. Please note that you must have an API for integration with online stores and mobile applications, a data encryption system, and fraud protection features. To meet security standards, you must obtain a PCI DSS certificate, which we remind you of in every article.
Stage 3. Building partnerships
It is necessary to establish partnerships with banks, payment systems (for example, Visa, Mastercard) and other financial institutions.
Stage 4. Legal aspect
Register a company and obtain the appropriate licenses to provide financial services in your country or region where you plan to work.
Stage 5. System testing
Run large-scale tests to test security, stability, and processing large transaction volumes. After a successful launch, regularly update the functionality, add new payment methods, and integrate innovative solutions to improve the platform's performance.
