Understanding payment gateway vs payment processors


Pls am trying to grasp the difference between payment processor and gateway, i want to develop a payment gateway.
I was told I need to use a payment processor for it, I learnt that paystack was built on flutterwave which the later is a payment processor. Is dis true?
And how do I go about developing my payment gateway built on flutterwave?
Pls your reply wud be so much appreciated. Tanks in advance.


Hello @DoubleAsam,

A payment gateway is used for facilitating online transactions and helping them get approved. It is also the first place the transaction goes when a customer submits an order online.

Payment processors are the financial institutions that work in the background to provide the core payment processing services used by an online merchant. These core processing services include authorization and refunding of transaction requests. Payment processors usually have partnerships with other companies, such as payment gateways, who deal directly with merchants to handle all processing needs.

You can leverage Rave to become a Mini Payment Gateway through its subdomain feature.



This reply doesn’t answer my question, saw the same thing on quora as well.
Frombmy little research I found out that
Flutterwave is a payment processor while paystack is a payment gateway similar to voguepay which is also a payment gateway. I stand to be corrected.


Hi, great question.
A payment gateway is a piece of software that serves as a mediator between a merchant and an acquiring bank.

A payment processor is a corporation that provides a payment gateway and a full pack of payment processing services.

If you need a more comprehensive explanation - let me know.