Evolution of payment technologies, which led to emergence of payment gateway cloud concept, is quite similar to the evolution of web-site hosting technologies.
Traditional payment gateway integration can be compared to a traditional shared hosting, used by multiple owners of web-sites. A hosted payment gateway solution or a white label payment gateway is a bit similar to virtual private server (VPS) solution, used by web-design agencies. An on-premise licensed payment gateway is a bit similar to a dedicated server, used by a large online business.
However, payment gateway cloud and collaborative or cloud payment processing are concepts, specific solely for merchant services industry. They allow users of different instances of the same payment technology to use each other’s certifications and local integrations for payment processing and sub-merchant on-boarding.
If you want to know more about payment gateway cloud and collaborative payment processing, consult the respective article on Paylosophy.