Keyword optimization of main keyword across site.
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My site is optimized for keyword "payment gateway" but it seems for each keyword only one page should be optimized as per good SEO.
So if I've a page about Paypal then how should I spread the keywords? Here the main will be Paypal and site keyword will be payment gateway. It means site should have more Paypal than payment gateway. But can payment gateway be in 3rd or 4th position in density?
Similarly how should I create other pages?
How search engines determine the site authority based on keyword? ( let us ignore the external backlinks, context of them and anchor texts).
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You should optimize one page for "payment gateway", it can be your main page or a landing page. The other pages should be optimized for different keywords and not competing against each other. This will increase page rank for each page and make them all powerful pages vs one or two pages being strong and the rest being weak. Hope this helps. Good luck.