One of the most widely used online payment solutions is the Hosted Payment Gateway, also known as an “externally hosted gateway.” This system differs from an Integrated/On-site Payment Gateway, both in terms of operation and user experience.
The key principle of a Hosted PG is that during checkout, customers are redirected from the merchant’s website to a dedicated payment page hosted by the payment provider. Here, they enter their payment details and complete the transaction. For example, after clicking “Pay” on a merchant’s website, the user may be redirected to platforms such as Omise, GB Prime Pay, 2C2P, or even a PromptPay QR payment page hosted by a bank. All sensitive information, including credit card details and transaction data, is processed directly by the payment provider.
The main advantages of Hosted Payment Gateways are security and ease of management. Since sensitive information is stored and processed by providers with high security standards, merchants are not directly responsible for handling this data. This reduces compliance burdens, including adherence to standards such as PCI DSS (Payment Card Industry Data Security Standard). Additionally, Hosted PGs are easy to install and use, requiring minimal technical development, making them ideal for businesses that want to start accepting online payments quickly.
However, Hosted PGs have certain limitations, particularly regarding user experience (UX). Redirecting customers to an external payment page may interrupt the checkout flow and potentially affect the trust of some consumers who are unfamiliar with leaving the merchant’s site.
Despite this, the combination of security, simplicity, and low cost makes Hosted Payment Gateways well-suited for small businesses or entrepreneurs looking to start accepting online payments without significant technical investment. While the UX may be slightly less seamless than an integrated solution, the convenience and security provided remain a significant advantage, ensuring reliable and efficient payment processing.
