With the rise of eCommerce and mobile payments, gateways play an increasingly important role in the payments ecosystem. Unlike the simple payment gateways of a decade ago, modern gateways are increasingly diverse, and offer features and value-added services for merchants of all kinds.
As gateways have proliferated, the variety of gateway providers has grown as well. In this paper, we review the function of payment gateways and the role they play in payments. We also consider some of the different types of gateways, and offer criteria that merchants, ISVs and developers can consider in determining the gateway solution that is right for them.