White label payment solutions typically work by allowing a company to use a payment platform or technology developed by a third-party provider as their own, without the need to build and maintain the technology themselves. This means that the provider's payment processing technology is integrated into the company's existing systems and infrastructure, and is customized to reflect the company's brand and other specifications. The payment gateway or processor remains invisible to the end user, who only sees the company's branding and user interface.
The white label provider handles the back-end processing of the payments, including managing the technical infrastructure, security. The company using the white label solution typically pays a fee for the service, but they may also benefit from reduced costs, faster time to market, and improved customer experience, as they are able to offer a seamless and branded payment experience without the need for extensive technical expertise or resources.