What is the most straightforward answer to the question- why do any businesses develop mobile apps? In the end, to generate revenue, right? So what better than giving way to visitors for directly buying something from the app itself rather than diverting them to websites or physical stores?
And for that, payment gateway integration is a must. One sure short trend in customer shopping behavior is undoubtedly in favor of a cashless future. The global market is pushing for online payment systems, and those legging behind will surely hit bottom.
By going through statistics from 2019 to 2023, the trend of cashless payment is upward across the continent from North America to Latin America and Africa. So isn’t it a great idea to integrate the payment gateway into your mobile application? Let’s find its various facets here.
Payment Gateways For Mobile Apps And Their Roles
When anyone shop via mobile applications and pick out things, those products or services go into a virtual cart, just like a shopping cart in a store.
When the visitor is ready to buy, they need to enter their details like card information, etc. Then, the payment gateway does its magic and takes the money from their card or bank. If everything is good, it sends the transaction a successful message to the customers. The payment gateway may also take a small fee to enable the transaction.
Payment gateways also help customers if they need to return something and get their money back (that’s a refund). They also handle things if customers change their minds and want to cancel their purchase. So, payment gateways are like helpful middlemen that ensure customers’ money gets to the right place when they shop on the app.
Major Types Of Payment Gateways For Mobile Apps
Hosted Payment Gateways
Hosted payment gateways direct customers to a host network’s platform to input their payment information, such as PayPal. Advantages of hosted gateways include the host’s responsibility for security and easy setup.
However, some countries don’t prefer these gateways, and slow performance has also been observed, negatively affecting conversion rates.
Integrated Payment Gateways
Integrated or non-hosted payment gateways use an API to link your app to payment services. It offers a seamless payment process within your app.
Here, the app requires greater security responsibility; otherwise, it will lead to fraud, data leaks, and compliance issues.
Why Integrating Payment Gateway Is A Great Business Acumen?
Better Security And Safety In Transactions
Payment gateway integration reduces the risk of fraud and theft. Online payments are protected by encryption and other security measures.
In addition, online payments help businesses to improve third-party vendors relationship. By providing a secure and convenient way for vendors to receive payments, companies make it easier for them to do business together.
Convenience- Anytime, Anywhere Transaction
No one can deny the convenience online transactions bring for both buyer and seller. Intuitive payment gateways streamline the checkout process, reducing friction for users.
Integration of popular payment methods like credit/debit cards, digital wallets (e.g., Apple Pay, Google Pay), and even alternative methods like cryptocurrencies lead to catering wide range of user preferences.
Way To Expend The Business- Globally
Depending on your chosen payment gateway, even international transactions become feasible. Gateways support various currencies and languages, so expanding the business base beyond geographical boundaries becomes easy.
Enhanced Experience For Various Stakeholders
Will you feel the same security and convenience when your favorite app takes you to other places for transactions? No, right?
Once you integrate payment gateway in Mobile apps, seamless and user-friendly payment processes genuinely enhance user experience. Similarly, complicated or lengthy payment procedures discourage users from completing transactions, thus leading to business loss.
Trust And Credibility Increses
Trust is everything, and once it is lost, gaining it requires effort from scratch. Integration of reputable payment gateways boosts trust in the app. Once your app has recognizable gateways, they don’t hesitate to enter their bank and card credentials.
Reduced Resources And Effort In Cash Management
Payment gateways provide APIs and SDKs to facilitate integration into apps. This method reduces the development effort required to implement secure payment functionalities.
Additionally, you get tools to manage and analyze transaction data. This data help businesses know user behavior, spending patterns, and more.
Increased Conversion And Revenues
A smooth and secure payment process is a gateway for lesser cart abandonment rates. Users complete transactions if the payment process is trusted, fast, safe, and efficient. It’s a great argument in favor of payment gateway integration with the help of a mobile app development company or other specialized agency.
Integrating gateways opens up monetization possibilities for apps through in-app purchases, subscriptions, or premium content access.
In-app purchases or payments for services via integration generate revenue directly from the mobile app. This can be a significant source of income for app-based businesses.
Competitive Advantage In This Cut Throat Market
Customers are getting more and more from companies due to high competition. Apps with secure payment options have a competitive edge. Users are more likely to choose apps with better purchasing experience.
It leads to user satisfaction and brand loyalty. Satisfied customers return and make repeat purchases.
Real-Time Transactions With Lesser Hassle
Payment gateways do real-time transaction processing. So as soon as anyone makes a payment, the business gets the amount into your bank account. Kindly note that it may take time due to the reconciliation process. Still, the process is faster and in real-time.
How To Integrate Gateway With Application For Payment?
Before we go into detail on how to implement a payment gateway in mobile apps, it is important to mention that Android and iStore offer payment gateways that charge as high as a 30% transaction fee for in-app purchases.
Isn’t it high? To avoid that, opting for third-party payment gateways are great. To integrate them, you need to follow these steps.
- Choose the best payment gateway and sign a contract with them with even minute details.
- Get client and server SDKs from the payment gateway for connecting the app’s existing functionality.
- Make use of gateway API keys to configure SDKs and libraries. They are essential in building a payment gateway integration in mobile applications. You can do the integration with little or no programming experience.
- Once you have integrated the payment gateway, it will use a particular API to process all payment requests. For that, you need to become a certified merchant. Being an accredited merchant testifies to your compliance with complete data protection.
Tips On Choosing The Best Payment Gateways For Integration With Mobile Applications?
- Data protection and encryption through compliance with industry security standards (PCI DSS)
- Intuitive and seamless checkout process with minimal steps and user input
- Multiple payment methods support such as credit/debit cards, digital wallets, cryptocurrency, online banking, mobile banking, etc.
- Multi-currency and multi-language support to reach your business to larger masses
- Clear API documentation and SDK availability for better compatibility with your app’s architecture.
- Transparent fee structure and costs with minimal transaction failure rate Responsive customer support with status tracking.
- An efficient process for refunds and disputes.
- Streamlines and fast timelines for transferring funds to your account
- Access to transaction data and insights for mobile applications.
- Ability to handle increasing transaction volumes with fewer difficulties
Best Payment Gateways For Mobile Apps
PayPal is a top-tier redirect payment gateway renowned for its credibility and diverse gateway options. It offers the Payflow gateway, which presents a choice between a free PayPal-hosted checkout payment gateway or a customizable option with added features at a monthly fee.
Adyen excels in point-of-sale and online transactions. Renowned brands like Uber, LinkedIn, and Microsoft have partnered with Adyen due to its transactional prowess.
Square is made for small businesses to facilitate payments. Created in 2009, Square offers services in countries like the USA, Canada, UK among others.
A leading gateway for mobile apps, SaaS, nonprofits, and platform-based payments, Stripe excels at high transaction volumes. Stripe is better known for powering Lyft’s extensive fleet of over 700,000 drivers for mobile transactions.
With its appeal bolstered by 200 million Amazon Prime members, Amazon Pay is an attractive gateway choice. It offers customization options, including plugins for a wide range of platforms.
Authorize.net has a rich history because it spans over 33 countries and over 400,000 customers worldwide. It enables payments through various processors and platforms, accommodating PayPal, Apple Pay, and major credit cards.
Wherever there is an Apple product, there is Apple Pay. It’s excellent for i-Store apps to merchants to receive payments via Face ID and Touch ID, prioritizing electronic wallet management. Numerous payment gateways, akin to PayPal, integrate Apple Pay, allowing retailers to access nearly 1 billion iPhone users globally.
It is estimated that online payment transactions will grow at a rate of 15% in the next few years in the USA. Do we need to convince you more to integrate payment gateways in mobile apps? As a business, you should be ready to take up the call for anything that leads to better growth and experience for different stakeholders. And you can’t miss payment gateways.
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