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Krunal Panchal

May 04, 2022 158 Views
11 mins read Last Updated May 04, 2022

Quick Summary : This article has covered the most essential parts of incorporating payment gateways in mobile applications. We've discussed the advantages and disadvantages of using a mobile payment gateway for your business. We've also discussed the essential features of a mobile payment gateway and how to add it to an android app.


According to the study, 35 million Americans and others use cell phones and mobile payment gateway. By 2022, it is expected that these consumers will increase the number of online payment transactions to $275 billion. We live in a period when internet shopping and e-commerce company solutions are in high demand. This has made it easier for e-commerce apps to incorporate mobile payment gateways, allowing users to complete online transactions with only a few clicks.

Because of the widespread use of mobile devices, the total volume of payments made via mobile applications increased from $450 bn to $1.08 trillion between 2015 and 2019. Payment systems make it easier to complete transactions in e-commerce applications and other applications. Many businesses use mobile payment gateway apps like PayPal, Stripe, Braintree, and Apply Pay to accept online payments and enhance sales. In the following article, we’ll go through the most essential parts of incorporating forms of payment for both Android and iOS. We’ll go over the advantages and disadvantages and address your burning concerns regarding how to add a payment gateway to the android mobile app.

What Does a Mobile Payment Gateway Mean and How Does It Work?

It is receiving or moving money from a client’s account to the merchant without becoming too technical. Let’s imagine you use the iHerb app to place an order. You can simply pay for your purchase online with your credit card by using a payment gateway. The money is processed in less than a few minutes, and your product is ready to ship.

Aside from the seller (you, as the app’s owner) and the client, there’s one more key player: the bank that processes the user’s credit card. The Mastercard or Visa credit card determines the speed and security of money transfers.

Suppose the person requests a refund due to poor product quality, damage, or other issues that do not meet the customer’s expectations. In that case, the transaction would be reversed. The acquiring bank (which belongs to the merchant) will then have to transfer the transaction directly to the issuing bank.

The Advantages of Using a Mobile Payment Gateway for Your Business

Advantage of Mobile Payment Gateway

Payment gateways embedded in web browsers and mobile apps can significantly increase sales and improve business operations. Furthermore, some businesses provide a variety of online payment methods to meet all clients’ demands. Let’s look at how a payment gateway application might give your company a competitive advantage.

Safety

The desire to perform financial transactions online is a regular occurrence in today’s age of technological breakthroughs. However, businesses must ensure that all of their customers’ personal information is protected due to this issue. Security encrypted data is also essential to ensure that money is transmitted from point A to point B even without the involvement of any third parties.

Quick Transactions

The ability to complete all transactions online reduces the time it takes to make a purchase. Going to an ATM, sitting in queues, and manually transferring money is faster than using a payment gateway.

24/7 Availability 

Customers can still purchase things at a time that is convenient for them, even if the app does not feature online customer service. However, with staff working around the clock throughout the world, the services you sell will be handled faster, meeting clients’ needs worldwide regardless of time zones.

Reduces Labor Costs 

Prior to the widespread use of payment gateways in mobile applications, businesses would hire employees to handle the money transfer to the merchant’s account. Implementing payment methods that operate automatically is a wonderful and cost-effective choice these days.

Things to do Before Integrating a Mobile Payment Gateway

A list of things one should consider and examine before integrating your payment gateway into your mobile application to be appropriate, convenient for clients, and effective.

Examine the Market

People use several payment methods based on the location where you’re preparing to deploy your app. Customers in the United States, for example, are willing to use PayPal and are at ease with credit card transactions through Stripe, Simplify Commerce, and Authorize.Net, among others. SagePay, PayPal, Skrill, Worldpay, and Payone are the most popular payment methods in Europe (Germany, Italy, France, and Spain).

UI personalization

Think about having there designed the application. Each payment gateway would have its logo, color organization, and overall style. However, not all payment connections allow you to customize the interface, so make sure to pick one that does or consider establishing a new page in your app.

Make Security Measures a Top Priority.

According to a SmallBizTrends survey, 77% of retailers have experienced some form of scam. In the case of online transactions, 29% of respondents said they had been the victim of card skimming. In light of this information, 69 percent of US businesses that use payment gateways spend significant money addressing fraud and cybercrime issues.

With this in mind, you can improve the security system by integrating the payment method while establishing additional security procedures.

Examine PGW’s Company’s Reputation

Mobile Payment gateway companies are no exception. The internet is full of forums where individuals offer comments about their experiences with various services, and payment gateway firms are no exception. You may learn about their flaws and downsides by looking up their image and reading the comments from consumers who have used this payment method to make a decision if you want to integrate them into your application.

Steps to Implement a Payment Gateway into an Android/iOS Application

In the following part, we’ll go over how to connect a payment gateway to an Android or iOS application. If you’re unaware of where to start or how long it will take to set up your payment method, this step-by-step tutorial will also help to create a payment gateway on the mobile application.

Step 1: Select PGWs and create a strategy for incorporating them.

The payment gateway that best meets your demands will be determined by the industry you work in, your organization’s size, and the country you are targeting. Consider combining two or more alternative techniques if, for example, you are running a fantastic retail app that is open to clients worldwide.

Step 2: Bringing the server-side and client-side SDKs together

Regardless of whatever payment gateway you intend to use in your app, each one will provide its own SDKs (Software Development Kits). These kits are used to gather, store, and manage all of your client’s and merchant’s payment-related information. Kits can be obtained on the payment gateway’s official site and utilized by your software engineering team to integrate into the in-app feature.

Step 3: APIs 

APIs allow developers to connect to the y and send a request for a response from a server. APIs in mobile payment gateway integrations make card payments easier and more secure, making the transactions between a seller & a customer easier and more secure.

Step 4: Safety certifications 

Payment gateways, as previously said, are advantageous because they provide a highly secure environment in which you and your user may freely communicate billing information. However, if you want to boost the level of protection, you need to consider installing extra PCI DSS-compliant certificates (Payment Card Industry Data Security Standard). SSL (Secure Sockets Layer) ensures that critical information sent between clients and merchants is kept safe.

Step 5: Processing of Payments

A one-time payment mechanism must be configured on the server when executing a transaction. You move the card information to the server after receiving it from the client. The server utilizes it to complete the payment transaction.

Best Practices for Mobile Payment Gateways Integration

Here’s a quick rundown of how to integrate a mobile payment gateway.

The Different Types of Merchant Accounts to Consider

Merchant A/C accepts online payments and acts as a banking account for your company. Storing money from the sale in your app before transferring it to your regular bank account. Transactions are validated by your supplier and forwarded to your merchant account in the situation of a mobile payment gateway system. The merchant account can be opened with various banks and integrated with payment gateways with the bank’s support. Alternatively, credit card payment gateway firms that offer an all-in-one solution and support merchant accounts can be used (e.g., PayPal and Stripe).

Here are the two sorts of merchant accounts you should choose based on your demands and business requirements:

1. Account with a dedicated merchant

Your firm will have its own merchant a/c. While this form gives you more financial control, it’s a time-consuming and costly process that requires multiple security checks.

2. Account for all merchants together

The revenue earned by your firm is combined with money generated by other businesses in this sort of merchant account.

The Kinds of Products Do You Sell

If you want to sell the goods or services on the smartphone, you must adhere to the Google Playstore or App Store policies. For iOS developers, there are guidelines, and Google has created a specialized API for Android developers. Consider mobile payment gateway operators if you’re selling tangible goods.

Safety Certificates 

Accreditation by PCI DSS is required if you handle financial data. Because of this, PCI DSS certification takes a long time. In order to ensure compliance with PCI DSS, the first step is to make sure the database that stores credit card information is always up-to-date.

Top 5 Most Popular Mobile Payment Applications

PayTM

Paytm Logo

It is a Wallet that has become India’s most popular mobile payment option. It has, nevertheless, grown in popularity globally as a result of its long list of advantages. To begin with, PayTM includes a cashback option that allows users to select which categories they want to earn cashback in. Second, suppose a customer has a problem with a payment. In that case, the money will be refunded to their card within several hours, rather than days, as with other similar payment options. Third, payment gateway integration is possible in various Android and iOS apps, including Uber, travel apps, and shopping platforms by a fintech app development company.

Amazon Pay

Amazon Pay Logo

It is compatible with all operating systems & BigCommerce applications are compatible with Amazon Pay. The rates for this payment gateway vary depending on the type of transaction: for local transactions, the price is 2.9 percent + $.30, while for international transactions, the fee can reach 4 percent.

Amazon Pay is simple because it can be used at non-Amazon merchants if you already have payment details on your account. There is, however, a small list of Amazon Pay-accepting merchants.

Secure Pay

Secure Pay Logo
Source: https://www.securepay.com/

Apart from MasterCard and Visa, this Australian payment service accepts many payment methods. Diners Club International, American Express, and PayPal cards are also accepted. Every transaction costs 2.4 percent, and the gateway may be incorporated into website pages, iOS, Windows, and Android apps.

Paypal

PayPal Logo

This payment system is gaining popularity in e-commerce, retailing, and other applications. PayPal is an encrypted redirect gateway with high-security measures that secure both the buyer’s and the merchant’s data. According to most app developers, PayPal is the most straightforward and user-friendly payment mechanism to employ in mobile apps. On the other hand, PayPal can quickly freeze the account of either a client or a merchant if they see any evidence of suspicious activity, according to the payment method’s policy. Also, PayPal’s charge structure ($0.3 plus 3.4 percent of the purchase price) may be a little high.

Apple Pay

Apple Pay Logo

It is a payment option that is only available on iOS devices. Apple Pay’s main distinguishing feature is that it lets users make payments using both Face ID and Fingerprint Sensors. However, the system charges a fee of 3% for each transaction (no additional commissions are taken). Apple Pay is used by over 85 percent of the people, so you can use it anywhere. To make an online payment, the user must have an Apple ID. Because information is added to Apple Wallet, Apple Pay is a necessary alternative for cash or credit/debit cards.

Conclusion

Time and effort are required to find a payment gateway solution that meets your needs and integrates payment systems. Payments in your mobile app should be enabled if you deal with any type of transaction. Implementing a mobile payment gateway will provide you with a competitive advantage. Because you’ll be able to automate online money transactions by making them last a few seconds rather than several days.

A payment gateway serves as a conduit between the bank and the customer, alleviating data protection, fraud prevention, and transaction security concerns. Hire a top mobile app development company to make the integration of the mobile payment gateway smooth.

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    Written by: Krunal Panchal

    Krunal Panchal is the CEO & Co-founder of Groovy Web. Krunal has been a hardcore programmer since he was 11 and started his professional career very young. His technical and logical mind drove him to choose coding as his destiny. At an initial stage, he got essential experience and the spirit of innovation and entrepreneurship. Learning something new is a never-ending process for him. Under his leadership, Groovy Web has become an established organization that serves industries from startups to enterprises, regardless of any limitations.


    Frequently Asked Questions

    We hope these clear your doubts, but if you still have any questions, then feel free to write us on hello@groovyweb.co

    If you want to be able to accept online payments, and you have a range of payment methods to offer, a payment gateway may be a good fit for you. A payment gateway will help you accept payments from your customers in a variety of different ways, such as automatically deducting payments from a customer's credit card account or collecting the information necessary to create an invoice.

    There are many different ways a payment gateway can be used. The most common use is to accept credit card payments. The most common payment gateway you'll find is called "PayPal". They are integrated with most online marketplaces so that you can easily accept payments from your customers. They also have a website where you can directly accept payments from customers.

    There are PGs that charges setup/integration fees too, so depends on the payment gateways that you choose. Need help to setup payment gateway in your mobile app? contact us.

    An API is used in payment gateways to allow other developers to integrate with the payment gateway. Basically, if you want another payment gateway to work with your payment gateway, you'll need to give them your API key. This allows them to communicate with your payment gateway.

    If you are non-PCI compliant, you are not compliant with credit card security standards. This is bad news because you cannot accept credit card payments on your website. If you are PCI compliant, you enable your customers to safely enter their credit card information onto your website.


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