What to Look for in a White-Label Payment Processor

With the growing popularity of eCommerce, the last few years have seen a dramatic increase in digital payments. The total value of these transactions is projected to exceed $15 trillion by 2027.

This presents independent software vendors (ISVs) and SaaS companies with a unique opportunity to grow their customer base by offering integrated payments as part of their solutions.

However, this is easier said than done; most ISVs do not have the necessary expertise or resources to become merchant services providers. This is where white-label payment processing comes in. 

In this article, we’ll discuss what this means, what to look for in a white-label payment processor, and help you decide if it might be the right choice for your business.

Let’s get started.


  • White-label payment processing refers to the use of a third-party payment technology—fully branded as your own—to process payments.
  • It benefits ISVs or SaaS companies looking to offer payments as part of their integrated solutions.
  • The first step to implementing white-label payment processing is to find the right payment tech partner.
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What Is a White-Label Payment Processor?

White-label payment processing refers to the practice of using a third-party payment gateway and/or other payment technology—fully branded as your own—to process payments. In this case, the organization that provides the payment technology for ISVs, SaaS companies, or other organizations to use as their own, is known as a white-label payment processor.

The white-label payment processor develops and maintains the entire payments infrastructure while providing ISVs the ability to customize the checkout, payment pages, and dashboards with their brand names, colors, logos, and copy.

As far as end customers are concerned, they will perceive the payment service as being offered by the ISV that rebranded it. There won’t be anything to suggest that a third party is involved in the payment process. 

Traditionally, ISOs or merchant acquirers would enter into agreements with payment service providers to “resell” their payment gateways and/or other merchant services. With white-labeling, ISOs, ISVs, and acquirers get to brand and sell these services as their own.

Not only does this allow them to expand their offerings, but also have greater control over the payment process. Plus, they get to create an additional revenue stream while leaving the heavy lifting (development and maintenance) to the white-label payment processor. 

Why Should You Implement White-Label Payment Processing?

White-label payment processing offers multiple benefits for ISVs or SaaS companies looking to offer payments as part of their integrated solutions. Let’s take a look at some of them.

1. Time- and cost-efficient

Building and maintaining a payments infrastructure is extremely resource-intensive. Besides developing the technology, ISVs would also need to build relationships with sponsor banks in order to facilitate payments. This can cost millions of dollars in time and money—something that small businesses can’t afford.

Partnering with a white-label payment processor is a way more viable option, as the processor offers the necessary APIs, apps, or plugins that integrate—quickly and seamlessly—with their software to provide the payment processing features they want. 

2. Security and compliance requirements

Security is a major concern in the payments industry. Payment solution providers need to ensure regulatory and PCI compliance besides implementing various fraud prevention and protection measures. With white labeling, an ISV can rest easy knowing that these aspects are already taken care of by their payment partner.

3. Additional revenue

One of the biggest benefits of partnering with a white-label payment processor is that it gives ISVs the opportunity to create an additional revenue stream by expanding their offerings.

By integrating payments, they can offer a more holistic solution to address the business needs of their customers. Plus, they have greater control over the payments experience which not only strengthens their customer relationships but also helps them grow their brand and reputation.

4. Core competency

By taking the white-labeling route, ISVs can save themselves the hassle and risk of exploring uncharted territories. Instead, they can focus on what they do best while offering a diverse range of solutions to meet the changing needs of their customers.

Factors to Consider When Selecting a White-Label Payment Processing Partner 

There are a few essential things you’d want to consider before choosing a payment partner that offers white-label payment processing. This will help you make sure that you are fully equipped to meet the needs of your customers. Here’s what you should look into.

1. The available customization options

One of the most important things to consider before you choose a white-label payment partner is the level of customization it offers. This is crucial because you’ll need to have full control over the branding. So check what customizations are available with respect to using your brand logo, color scheme, font, etc.

For example, within Stax Pay, partners who want to white label can create/use their own brand colors and images instead of the Stax logo. Plus, they can customize the left navigation bar, depending on what features they want to offer to their sub-merchants (invoices, payment links, etc.). They can also choose to hide reports that they don’t want their sub-merchants to view. 

2. Types of businesses you can work with

A white-label payment gateway solution gives you more control over the payment process, but providers sometimes impose limitations on who you can work with. Some partners may not allow you to work with high-risk businesses, such as casinos or online gambling. So, when choosing a white-label service provider, make sure it caters to the businesses you work with (or are planning to work with in the future). 

3. Banks or acquirers they work with

To ensure a smooth payments experience for your customers, look for a payment platform that has a strong and long-term relationship with sponsors or acquiring banks. This will ensure that payments are swift and go through successfully, more often than not.

4. Security and compliance features

White-label payment service providers (PSPs) generally go to great lengths to ensure security and compliance. But regulations surrounding payments are often complicated and can vary across industries and locations. See to it that your partner is compliant with PCI DSS as well as other applicable regulations within the industries and countries you want to work with. 

Also, check if they support tokenization—a safety measure that ensures you never have to handle sensitive payment data of your customers directly. Do they have anti-fraud and chargeback prevention controls in place? These are important questions to ask during your evaluation.

5. Payment options supported

Make sure your white-label processing partner supports a range of payment methods and currencies for the end-user. Besides all major credit cards and debit cards (Mastercard, Visa, Discover, Amex), check if they support online payments, digital wallets (Google Pay, Apple Pay, PayPal, etc.), invoicing, recurring billing, payment links, and QR code payments. These can greatly improve customer satisfaction and help you serve a larger customer base. 

6. Customer support 

When someone else is responsible for your entire payments infrastructure, you need them to be available whenever you or your customers run into an issue. To that end, make sure your white-label payment processing partner offers excellent customer support round the clock, including the ability to speak with a live person who can provide assistance in real time. 

7. Other considerations

You’ll also want to make sure the solution is cost-effective and offers modern APIs and SDKs that ensures a quick and seamless integration. Can you take advantage of any third-party integrations that your partner offers? Can merchant onboarding be done in-app through customizable enrollment flows? Does the platform offer robust reporting features to check user activity, residuals, and volumes? All these will help you make a well-informed choice.

Moving Forward with White-Label Payment Processing

When it comes to choosing a white-label payment processing partner that fulfills all your requirements, look no further than Stax. We have the expertise and capability to provide the best-in-class payment infrastructure that supports a wide range of payment methods and streamlines risk management.

Leverage our long-standing relationship with the world’s leading sponsor bank and create an entire payments ecosystem from scratch in as little as 30 days. To learn how you can fully own and monetize the payment experience while enhancing the capabilities of your platform, contact us today.