Every business needs access to easy and efficient payment solutions. But not every company can afford to develop a payment infrastructure from scratch. And that is where white label payment processing comes as a viable option.
White label payment processing is a business model where a third-party payment provider allows another business to rebrand and resell an existing payment product under their own name. This allows companies to provide payment services to their clients without a need to build and maintain the technical infrastructure themselves. Think of it as renting a full payment engine that you get to paint in your brand colors.
The phrase “white label” first appeared in the retail sector, as similar goods may be packaged and marketed under different brand names.
For example, a software business that targets eCommerce merchants may provide them with a checkout solution that is powered by a white label payment processor. The end merchants will never know a third-party engine is running as everything, including the merchant site and support emails, is branded under the software company’s name.
| Segment | 2024/2025 Value | Forecast (Year) | CAGR |
| Global White Label Gateway Market | USD 2.29 B (2024) | USD 6.87 B (2033) | 14.5% (2024-33) |
| Global White Label Gateway Market | USD 5.4 B (2024) | USD 12.7 B (2033) | 10.3% (2026-33) |
| Global White Label Payment Gateway Software Market | USD 5.6 B (2025) | USD 17.4 B (2033) | 13.2% (2025–33) |
| White Label Payment Platform Market | USD 2.02 B (2025) | USD 4.08 B (2030) | 14.9% (2025–30) |
The white label model follows a relatively straightforward structure:
The provider supplies a suite of tools: APIs for payment integration, merchant onboarding flows, risk management modules, settlement logic, and compliance features. The goal is to develop software that resellers can easily rebrand and embed into their product or portal.
The reseller pays setup fees, transaction fees, and revenue share (depending on the agreement).
The reseller rebrands the portal, dashboards, emails, and documents with their branding, colors, domain name, etc. From the merchant’s side, it appears as though the reseller is the owner and operator of the whole payment product.
From this point, reseller’s clients interact with what appears to be the reseller’s own proprietary payment system.
The white label provider handles everything, yet the reseller’s brand is shown front and center. The primary responsibilities of the white label supplier include PCI compliance, transaction processing, fraud monitoring, dispute resolution, etc. On the other hand, the reseller takes care of merchant relationships, customer support, and sales.
A white label payment platform enables companies to go to market with payment services significantly quicker and cheaper than an in-house build. This strategy prevents long development and makes huge savings on infrastructure investments. Research indicates that it can save as much as 25 per cent on development costs.
Outsourcing payment processing technology helps businesses concentrate on their main offerings and customer relationships. The white label provider manages complex back-end operations, including gateway maintenance, fraud management, and regulatory updates. This way, the business does not have to keep updating payment technology or compliance processes.
White label payment processing enables a company to provide a smooth and branded user experience. The company can customize the platform with its own logo, colors, and interface. This means end-users see the company’s brand at every touchpoint, even though the underlying software comes from a partner.
Companies have instant access to a reliable payment infrastructure. This includes support for various payment methods, security features, and compliance with standards like PCI-DSS. They do not need to develop this from scratch and can rely on the provider’s expertise to keep transactions safe and meet regulatory requirements.
White label payment solutions are designed to be scalable. Companies can increase their transaction volumes or enter new markets without making significant new investments in payment infrastructure. This ensures steady uptime and performance as the business grows.
Integrating a white label payment solution can create additional revenue opportunities. For instance, businesses can earn a share of transaction fees or provide premium payment services. This turns payments into a profit center while adding value for their customers.
Despite its benefits, white label payment processing has trade-offs and potential drawbacks that businesses must manage carefully. These include limitations in customization, reliance on external providers, and strategic factors.
Many companies use the same white label platform. This often means there are strict limits on how much the user experience or features can be adjusted. As a result, products may look and function similarly to competitors’, making it hard for a business to stand out with unique value.
When businesses rely on a white label provider, they depend on that third party for new features, updates, and uptime. This lack of direct control can slow down innovation. For example, businesses might have to wait for the vendor to support a new payment feature. This situation can reduce agility and potentially affect customer satisfaction if the provider is slow to respond.
The white label model can create a false sense of competition in the market. Many fintech startups enter the payment space through a few white label platforms. This can lead to similar services, and companies may end up being acquired by larger firms. As a result, the anticipated increase in competition and innovation may not fully occur over time.
Using a one-size-fits-all platform can make technical integration complex, especially when specific customizations are necessary. Startups have noted that managing several white-labeled deployments without a strong variability management strategy can make updates and maintenance difficult. This often means relying on manual configuration and duplicated code for each client.
White label agreements generally involve sharing revenue or paying fees to the provider for each transaction processed. This setup means the company reselling the service earns lower margins than if it managed its own processing. Over time, these ongoing fees can accumulate, so businesses need to factor in the costs of the partnership when setting their pricing and margins.
| Feature | White Label Provider | ISO/Agent | PayFac (Payment Facilitator) |
| Own Merchant Accounts | No | No | Yes |
| Branding | Fully Branded | Shared Branding | Fully Branded |
| Compliance Responsibility | Mostly on Provider | Mostly on Provider | Full Responsibility |
| Underwriting & Risk | Handled by Processor | Handled by Processor | Handled In-House |
| Speed to Market | Fast | Fast | Slower (requires setup & licensing) |
| Revenue Potential | Moderate | Low | High |
To understand the real-world use of white label payment processing, it helps to look at how different companies use this model to expand their services, improve customer experience, and create new revenue streams. These examples cover various industries, including SaaS, crypto, and financial services.
A B2B invoicing software company wanted to give its users the ability to accept credit card payments. Instead of sending customers to third-party gateways, the company implemented a white label credit card processing solution. By adding a branded payment module and an onboarding process for merchants, it allowed users to accept payments directly from invoices. The result was higher user retention and a new recurring revenue stream from transaction fees.
An independent sales organization (ISO) that serves small retailers switched to a white label merchant processing model to provide a complete range of services under its own brand. With access to a customizable white label payment platform, it quickly expanded its operations. This change allowed sub-merchants to onboard through branded portals, track transactions, and receive support from a single interface.
A crypto wallet provider needed to facilitate fiat-to-crypto transactions. Instead of building a compliant payment gateway, it teamed up with a white label payment processor. This partnership enabled the wallet to accept card payments for crypto purchases without managing PCI compliance directly. The provider kept control over branding and user experience while outsourcing the technical and regulatory complexities.
Businesses can get the most out of white label payment processing and reduce its risks by following best practices and careful planning when implementing these solutions.
Perform thorough research when selecting a white label payment processor. Evaluate technology capabilities, reliability, fee structure, compliance record, and support. This will help ensure the partner meets your business needs and provides a stable foundation for growth. To find payment service providers that offer white-label solutions, visit our directory of payment service providers and use the “Branding & White-Labeling” filter. Simply check the “White-Label Options” box to view a curated list of providers offering white-label services.
Allocate resources to customize the look and feel of the white label platform as well as the customer journey. This ensures your payment service reflects your brand’s values and offers a smooth user experience. It helps avoid a generic look and can boost customer trust and loyalty, even if the underlying technology is shared.
Work closely with the provider to understand the division of regulatory responsibilities. Confirm who manages KYC/AML checks, how data security and privacy are handled, and what liabilities each party has. This will help prevent compliance gaps and keep your company in good standing with legal requirements.
Plan for the long term by choosing a solution that can grow with your transaction volume. Check the provider’s roadmap for adding new payment methods or features. Aligning on innovation plans will help keep your white label payment offer competitive as the market and technology change.
Carefully assess the costs of the white label arrangement, including transaction fees, revenue splits, and any minimum commitments. Develop an exit strategy in advance. For example, negotiate data portability and customer transition assistance. This way, if you decide to switch providers or create an in-house system, you can do so with minimal disruption.
White label payment processing is set to become more important in the payments and fintech industry. Companies want fast solutions and chances for embedded finance. However, to maintain its success, it must address its limitations, such as the need for more customization. It also needs strong regulatory frameworks. These are seen as key factors for the future growth of white-label banking and payment services.
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