Types of Checkout in Payment Gateways: Quick Guide

The way your customers pay is just as important as what they’re buying. A smooth, secure, and fast checkout experience can be the difference between a completed sale and an abandoned cart.

When setting up digital payments or a payment gateway, choosing the right type of checkout is crucial for both your business and your customers. From fully hosted solutions to embedded forms and fully customizable flows, each checkout method offers a different balance of control, convenience, and complexity. 

In this guide, we’ll explore different types of checkout in payment gateways. You’ll learn how each one works, the pros and cons, and which option makes the most sense based on your business size, technical resources, and customer experience goals.

Read More: What is a Payment Gateway? Definition & Examples

What are the various types of checkout in a payment gateway?

All types of checkout used in payment gateways for websites or apps are usually grouped in four categories:

1. Based on Integration Type
2. Based on User Experience
3. Based on Payment Method or Technology
4. Based on Platform or Context

1. Based on Integration Type

1. Hosted Checkout: Easiest to set up. Customers pay on the payment provider’s page, not yours. Great for fast launch and low risk, but limited branding control.
   
2. Self-Hosted Checkout: The payment form is on your site. You keep users on your site and control the experience, but you need more tech setup and security responsibility.

3. Embedded Checkout (iFrame): Users pay on your site via a secure embedded form. Simple integration with a branded feel, but limited design flexibility.

4. API-Based Checkout: Full control over the checkout flow and look. Best for advanced teams needing custom experiences. High effort, high flexibility, and higher compliance responsibility.

5. Mobile SDK Checkout: For mobile apps. Gives smooth, secure in-app payments with native features or biometrics. Requires mobile dev skills; not for websites.

6. JavaScript Widget Checkout: Fast setup using a payment widget on your site. Good mix of ease, security, and light branding great for small teams wanting to go live quickly.

2. Based on User Experience

1. Standard Checkout (Multi-Step): A familiar, step-by-step process (cart > shipping >> payment). Great for collecting complete info and guiding users, but slower and more prone to drop-offs, especially on mobile.

2. One-Page Checkout: All fields on one scrollable page. Speeds things up and works well on mobile, but needs a clean design to avoid overwhelming users.

3. One-Click Checkout: Fastest option for returning customers. Ideal for mobile, impulse buys, and subscriptions. Needs saved info or wallet login, so it’s not ideal for first-time buyers.

4. Saved Card / Vaulted Checkout: Lets customers save cards securely for future use. Reduces friction for repeat purchases and subscriptions. Requires user accounts but boosts loyalty and retention.

Read More: What is Device Tokenization, and How Does It Work?

3. Based on Payment Method or Technology

1. Card Checkout (Credit/Debit): Most common method, supports global payments and recurring billing. Great for wide reach, but requires secure handling and PCI DSS compliance.
2. Digital Wallets: Fast, secure one-tap payments (like PhonePe). Boosts mobile conversions and reduces drop-offs. Ideal for India’s mobile-first audience.
   
3. Buy Now, Pay Later/ BNPL: Let’s customers pay in installments, increasing order value and conversions. You get paid upfront, but transaction fees are higher.
   
4. QR Code Checkout: Customers scan a QR with UPI apps to pay. Contactless, simple, and ideal for Indian consumers, especially in hybrid online-offline models.
   
5. Cash on Delivery/ COD: Popular in Tier 2/3 cities and with first-time buyers. Builds trust but adds delivery risks, higher returns, and operational costs.
   
6. Subscription/Recurring Checkout: Perfect for memberships or repeat purchases. Automates billing and improves cash flow, but needs good retry/dunning logic to manage failed payments.

Read More: What is UPI Autopay?

4. Based on Platform or Context

1. POS Terminal Checkout (In-Person): Ideal for physical retail. Accepts card and wallet payments via swipe, chip, or tap. Great for omnichannel selling but requires hardware, upkeep, and staff training.

2. Social Media Checkout

• Instagram Shopping Checkout: Let’s customers buy directly in the Instagram app great for lifestyle and D2C brands. Encourages impulse buys, but you’re tied to Instagram’s rules and ecosystem.
• Facebook Checkout: Customers complete purchases inside Facebook using stored payment information. Smooth social selling with reduced friction, especially for promotions. Requires a Facebook Shop and compliance with platform policies.

3. Website Checkout: Customers browse your product listings, add items to their cart, and pay securely on your site via a payment gateway. Offers full brand control, supports inventory management, and works seamlessly with shipping and delivery systems. 

Read More: Types of Payment Gateways Explained[2025 Guide]

No matter what type of checkout your business needs, it’s essential to choose a payment gateway that offers flexibility, security, and a seamless experience. PhonePe Payment Gateway supports all major checkout types, helping businesses deliver faster, smoother, and more reliable payment experiences across web, mobile, and app platforms. 

With zero setup fees, no monthly charges, and a limited-time offer of zero transaction fees, PhonePe PG makes it easy to get started and scale. Whether you’re a growing startup or an established brand, now is the perfect time to switch to a payment solution trusted by millions.

For more information about getting started with PhonePe PG, read more here.