For banks, fintechs, and merchants looking to offer a seamless, branded card processing and payments experience, a white-label payment gateway provides a path to market faster than building a payments stack from scratch. You gain control over the user experience, branding, and merchant relationships while leveraging the backbone of an established payments platform. Yet the promise of “white-label” can be deceptive if you don’t understand the total cost of ownership (TCO). This guide lays out what you should expect to pay, how those costs break down, and practical strategies to budget for a gateway that meets your business and compliance needs.
Understanding the cost landscape
The cost of a white-label payment gateway is not a single line item. It is a bundle of charges that reflect the lifecycle of a payments program—from initial setup to ongoing operations. While the exact numbers vary by provider, geography, risk profile, and deal structure, most buyers encounter several common categories:
- Upfront setup and onboarding: Discovery, architecture design, risk assessment, KYC/AML checks, initial underwriting, and integration work. This is often a one-time investment that can range from a few thousand dollars to six figures in some all-in arrangements.
- Platform license or access: A recurring fee to access the gateway’s software and services, typically billed monthly or quarterly. This covers core features, updates, and baseline support.
- Branding and customization: UI/UX customization, checkout page branding, localized content, error messaging, and any bespoke features tied to your brand identity. This can be a one-time design fee or rolled into ongoing maintenance.
- Security, compliance, and PCI DSS: Payment gateways operate in a regulated space. Some providers include a portion of compliance costs, while others require you to bear the burden of PCI DSS SAQ assessments, vulnerability scanning, and annual penetration tests.
- Hosting and infrastructure: High availability, disaster recovery, redundancy, and data localization. Depending on whether you’re hosted by the provider or self-hosted, infrastructure costs can vary substantially.
- Maintenance, support, and service levels: Ongoing bug fixes, feature requests, and technical support. Higher SLAs (uptime, response times) typically come with higher prices.
- Transactional costs: This is the ongoing per-transaction cost—acquiring banks, card networks, and processors take a slice of each payment. This is often quoted as a combination of a percentage of the transaction plus a fixed fee per transaction (for example, 0.5%–2% + $0.10–$0.30).
- Settlement and reserve arrangements: Some providers require merchant reserves, rolling holds, or settlement timing that can affect cash flow.
- Hardware and point-of-sale devices (in some models): A minority of white-label deals bundle hardware for in-person payments, which adds upfront and ongoing costs.
Understanding these categories helps you create a baseline forecast and compare proposals on an apples-to-apples basis. It also clarifies where you might negotiate and where you should invest in your own capabilities to avoid hidden costs later.
Cost models you’ll likely encounter
Different vendors price differently based on target customers (banks, fintechs, merchants), deployment mode (hosted vs. self-hosted), and whether you run the gateway purely as a service or as a true white-label product with branding control. Here are the common models you’ll see in the market:
- Fully hosted white-label (SaaS) with per-transaction fees: You pay a regular platform fee plus a per-transaction mix of percent and fixed costs. The provider handles hosting, compliance, updates, and SLAs. This model is popular for speed to market and predictable ops costs, but it can become expensive at scale if margins are tight.
- Self-hosted white-label with managed services: You own more of the stack but rely on the vendor for certain services (PCI services, risk tooling, or specialized integrations). Upfront investments are higher, and ongoing maintenance can be more complex, but you gain greater control over customization and risk management.
- White-label gateway with branding control (co-branded or fully white-labeled): The emphasis is on the customer-facing experience. Branding, merchant onboarding flows, and customer support appear under your name. Pricing often includes higher setup fees but potentially better revenue sharing or margins in the long run.
: In a Payfac arrangement, you act as the merchant of record for sub-merchants and leverage a gateway provider’s rails. Costs include a mix of monthly platform fees, per-transaction charges, and underwriting or risk management costs. This model is attractive for platforms that want to onboard many sub-merchants quickly but requires rigorous compliance oversight.
Each model has pros and cons. The hosted SaaS path tends to be fastest to market and simplest to operate, while self-hosted and Payfac arrangements offer deeper control and potential long-term savings but demand more internal capability and governance.
Real-world price ranges: what to expect
Pricing in white-label gateways spans a broad spectrum. While exact quotes vary by geography and business risk, several ballpark figures illustrate what buyers typically encounter:
- Upfront setup and onboarding: In many cases, a one-time setup fee can range from $5,000 to $50,000 or more, depending on the complexity, required integrations, and whether hardware is bundled. Some all-in-one packages tout higher upfront costs to cover equipment, licenses, and enterprise-scale compliance tooling.
- Platform access and licenses: Monthly platform fees commonly fall in the $1,000–$10,000 range for mid-market solutions, with higher-end enterprise deals exceeding $20,000 per month for full-featured ecosystems and advanced risk controls.
- Customization and branding: Design and branding work can be billed as a one-time project (ranging from a few thousand to tens of thousands) or as ongoing maintenance (a few hundred to a few thousand per month) depending on the depth of customization and localization needs.
- PCI DSS and security tooling: Some providers include baseline compliance tooling in the price, while others bill separately for scanning, penetration testing, and annual assessments. Expect a few hundred to several thousand dollars annually, depending on the scope and merchant portfolio size.
- Hosting, redundancy, and infrastructure: If you’re hosted by the provider, this is often bundled into the platform fee. Self-hosted deployments that you manage in your own cloud can add significant monthly costs for compute, storage, backups, and failover capabilities.
- Transaction fees: The ongoing cost of processing payments typically includes a percentage of the transaction plus a fixed fee, e.g., 0.5%–2.5% + $0.10–$0.30 per transaction. High-risk industries may face higher rates and additional risk-adjusted fees.
- Hardware and devices (optional): A minority of deals bundle card readers, point-of-sale devices, or secure payment terminals. If included, hardware costs can be substantial upfront and may require ongoing depreciation or replacement cycles.
- Support and SLAs: Premium SLAs for uptime, rapid incident response, and dedicated support agents can push monthly fees higher, but they can be critical for enterprise customers who rely on payments for revenue.
It’s important to note that “low upfront cost” does not always mean “low total cost.” A lower initial price can come with higher per-transaction costs, limited support, or lagging feature development. Conversely, a higher upfront investment may unlock better economics over time as your volumes grow, your onboarding processes scale, and your risk controls become more efficient.
Examples and tensions in pricing stories
Industry anecdotes reveal a few common tensions buyers face as they evaluate proposals:
- Some vendors advertise “all-in” packages around the $40,000 range for hardware, licenses, and initial setup. For a growing fintech or a mid-market merchant, that price point might reflect a bundled solution designed to be quickly deployed with a minimum viable feature set.
- Other providers emphasize a zero-development-cost promise for brandable gateways, arguing that the platform already includes the necessary compliance tooling and ready-made storefronts, allowing you to launch with a clean slate. In practice, you may still incur customization costs to tailor flows, KYC twists, and regional payment methods.
- Marketplaces and cloud-based gateways sometimes present a high platform usage fee (for example, a one-time or quarterly platform access charge) in addition to per-transaction costs. This structure can be friendly for businesses with steady volumes and the need for robust uptime guarantees.
- For platform ecosystems that onboard numerous sub-merchants, Payfac-style arrangements can be attractive, but they demand strong governance: sub-merchant underwriting, risk monitoring, and ongoing compliance oversight that can translate into additional internal cost centers.
These examples show that the best deal is not necessarily the cheapest upfront. A well-structured white-label gateway should align with your business model, expected growth, risk appetite, and customer experience strategy.
Evaluation checklist: how to pick a cost-effective white-label gateway
: Are you a bank, a fintech platform, or a merchant acquirer? Do you want to onboard sub-merchants quickly (Payfac) or primarily service your own merchant base? Your answer shapes the best pricing model. : Project monthly transactions, average ticket size, and regional currency requirements. This informs per-transaction pricing and whether you need multicurrency capabilities or cross-border optimization. : Decide how deep the branding should go. If you require a fully white-labeled experience with brand-consistent UI across markets, you may need higher customization budgets. : Compliance costs are not optional. Confirm what is included and what you must manage independently (PCI DSS scope, vulnerability scans, penetration tests, and incident response plans). : Understand uptime guarantees, incident response times, support channels, and escalation procedures. A cheaper option that crashes during peak times can cost more in lost revenue. : If you operate in multiple regions, you may need data localization, regional meetups, or sovereignty controls, which can influence both cost and architecture. : Confirm that the vendor supports your existing tech stack, or that the upgrade path is well-defined and cost-controlled over time. : If you outgrow the provider or pivot your business model, ensure you can migrate data and configurations with predictable costs and minimal downtime.
When you go through this checklist, demand a detailed breakdown in the contract: one-time setup, ongoing platform fees, per-transaction charges, branding costs, and any optional add-ons. Ask for a TCO projection over 3–5 years with optimistic, base, and pessimistic scenarios to understand the price sensitivity as your volumes evolve.
Estimating your total cost of ownership (TCO)
A practical TCO estimation starts with a simple model and then grows in granularity as you validate assumptions with proposals. Here’s a straightforward approach you can adapt:
: Estimate monthly transaction count, average ticket size, and the geographic distribution of payments. : List all potential costs across categories—setup, platform/license, customization, compliance, hosting, maintenance, transaction fees, and hardware if applicable. : Create three scenarios—conservative, expected, and aggressive growth. For each, apply the corresponding pricing terms from quotes you receive. : Identify which lines have the biggest impact. In many cases, per-transaction costs scale with volume, which can swing TCO significantly as you grow. : Convert annual costs into quarterly cash flows to align with your budgeting cadence. Don’t forget working capital needs for reserves or rolling settlements if applicable. : Sum upfront costs plus a 3–5 year horizon of recurring costs. Compare the TCO across different providers and pricing models to determine which yields the best long-term value.
In practice, startups with modest volumes often favor a lower upfront cost and predictable monthly fees, even if the per-transaction rate is slightly higher. Larger platforms with high volumes might negotiate lower per-transaction rates and additional revenue-sharing options but should weigh the value of advanced fraud protection and risk controls that reduce long-term risk and chargebacks.
Industry-fit scenarios: who should consider white-label gateways?
White-label gateways are not one-size-fits-all. Here are a few common scenarios where this approach makes sense:
: These institutions want a branded, seamless payments experience while leveraging a trusted backend to ensure PCI compliance and network reliability. : A Payfac-style setup may be attractive, allowing rapid onboarding of merchants under the fintech’s brand with centralized risk governance. : A white-label gateway can unify payments across sellers, currencies, and geographies with a consistent checkout experience. : For industries such as SaaS, hospitality, or healthcare, tailoring payment flows, risk profiles, and compliance controls to a vertical can be a differentiator.
For each scenario, the value proposition often hinges on branding, control of onboarding, and the ability to deliver a frictionless checkout. If your users demand a premium experience and you operate in multiple regions, a white-label gateway can align with your strategic goals—provided you choose the right pricing model and partner with a capable provider.
How to budget effectively: practical steps
- Start with a rough TCO baseline using industry averages, then refine as you receive quotes tailored to your volume and risk profile.
- Negotiate a staged ramp for platform fees and per-transaction costs tied to volume milestones to protect cash flow during early growth.
- Ask for a transparent pricing matrix, including all potential add-ons, one-time fees, and any costs that kick in after a specific threshold (e.g., high-risk merchants or cross-border processing).
- Request a clear data migration plan and a detailed exit strategy with estimated data portability costs.
- Incorporate security and compliance as part of the core value proposition, not as a bolt-on expense. A robust security posture reduces the likelihood of costly incidents and regulatory fines.
Budgeting with clarity helps prevent surprises and enables a predictable roadmap for product teams, finance, and executive stakeholders. It also supports better decision-making when comparing competing white-label offers that may have different value drivers beyond mere price.
Partnering with the right provider: what to look for
Beyond price, the long-term success of a white-label gateway depends on the vendor’s capabilities and alignment with your business strategy. Consider these elements when evaluating proposals:
: Ensure your existing stack, mobile apps, and merchant onboarding flows can be integrated smoothly. Check available APIs, webhooks, and SDKs. : Look for PCI DSS scope clarity, regular third-party security testing, and a transparent incident response protocol. A strong security posture is a long-term cost saver. : If your business operates across borders, confirm data residency options and cross-border processing rules. : A dedicated account team, clear escalation paths, and real-time monitoring can be worth a premium if payments are central to your revenue. : Request case studies or references from similar industries and use cases. Real-world performance is the strongest predictor of future reliability.
These factors often matter more than the headline price, because the cost of downtime, poor conversion, or non-compliance can dwarf initial savings.
What Bamboodt clients often consider when choosing a white-label gateway
As a fintech and banking software partner, Bamboo Digital Technologies (Bamboodt) understands the delicate balance between speed-to-market and long-term operational stability. When clients outline a white-label gateway strategy, they frequently examine:
- How the gateway integrates with existing digital banking platforms, eWallets, and core systems.
- Whether the solution supports PCI DSS scope optimization and ongoing security scanning without duplicating internal efforts.
- The extent of branding control to deliver a truly native customer experience across web, mobile, and merchant portals.
- Whether the provider offers transition services, data migration support, and risk tooling that scales with merchant growth.
- The potential for custom payment methods, regional currencies, and localized checkout flows that reduce friction for end users.
With a focus on secure, scalable, and compliant fintech solutions, Bamboodt collaborates with clients to design white-label gateways that align with strategic goals—whether that means speed to market for a new market launch, or a highly controlled, vertically integrated payments engine for an incumbent bank.
Final notes: making the most of your investment
Choosing a white-label gateway is a strategic decision that involves more than cost alone. A well-chosen partner delivers reliable uptime, strong fraud risk controls, and a branded, frictionless payments experience that converts more customers and sustains long-term growth. If you take a structured, model-driven approach to evaluating upfront costs, ongoing fees, and risk-adjusted pricing, you’ll be better positioned to select a solution that fits your business model today and scales with you tomorrow.
If you’d like industry-aligned guidance on white-label gateway options, architecture considerations, or a tailored TCO analysis for your organization, reach out to the team at Bamboo Digital Technologies (Bamboodt). We specialize in secure, scalable fintech solutions and can help you map a path from concept to a branded payments engine that delivers real business value.
