What mysteries does the mobile payment gateway hold? In 2021, approximately 73% of consumers made online purchases using their mobile devices, according to Statista. Moreover, just 6.5% of all e-commerce transactions in 2019 were made using mobile devices. Yet by 2020, mobile payment gateway usage had increased to 44.5%! Nowadays, practically all apps provide in-app purchases.
Why? Because clients value the simplicity of paying with just a click as opposed to signing into their bank accounts or entering their credit card details. Although most of us are familiar with how to use apps for payments, few of us are likely familiar with how they operate technically or what is required to integrate them into apps. Have you been considering that question as well?
Mobile Payment Gateway What Secrets Does It Hide?
In this article, you can know about Mobile Payment Gateway What Secrets Does It Hide? here are the details below;
If so, you’ve come to the correct spot because in this post, we’ll discuss how and why to add a payment gateway to an app.
What is a mobile payment gateway?
Mobile payment gateways enable both consumers and sellers to accept payments online for purchases made through an app.
The immediate job of the gateway is to collect, process, encrypt, validate, and send transaction data from the customer to the merchant.
In order to make financial transactions easier, the payment gateway app essentially serves as a link between customers and retailers.
Here is how the entire payment procedure typically works:
A user selects a product they wish to buy and adds it to their shopping cart.
The user selects their preferred payment option during the checkout process, including credit card, bank app code, and others. Also check Intelligent Digital Mesh
They are then forwarded to a gateway website, like Paypal (although there are many others; we’ll mention those later).
The gateway sends the information that the user has added to the bank.
The issuing bank verifies that the purchase is legitimate and that the buyer has sufficient funds in their account to cover the purchase.
If the verification is successful, a payment confirmation is returned to the app via a payment gateway.
The merchant then learns that an order has been placed and paid for.
The merchant then notices the funds in his account when the gateway starts a payment settlement.
The payment procedure
Is it any wonder that less individuals are starting to use actual cash or banknotes given that, despite what may seem to be a lengthy and onerous process, the transaction only takes a few seconds to complete?
Just 9% of individuals in the Asia-Pacific area used physical money in 2019, and that percentage is predicted to drop even further by 2024, to 1.6%.
By 2025, the mobile payment market in Poland is anticipated to grow to US$ 26,893.9 million.
This is mostly because of the BLIK service, which enables customers to make payments and cash withdrawals using only their mobile banking app and a special 6-digit code issued after each transaction.
What are the benefits of using a mobile payment gateway?
Whether you already have a mobile app or are planning to build one, you are aware of how fierce the competition is and how challenging it is to keep users engaged.
Your app can be rapidly replaced by another one if you don’t stay current with industry developments.
One of these developments is mobile payments; in the Asia-Pacific area, where they are expected to account for 47.9% of POS transactions in 2024, mobile wallets are already by far the most popular payment option.
But why are they so valuable?
First and foremost, mobile transactions are highly practical.
Customers may pay even from a distance and don’t need to carry cash or worry about finding change (for example, pay for a takeaway as they are leaving their office).
For businesses, that means:
increased client satisfaction as a result of a lot more convenient payment method and the ability to buy goods and services whenever they want.
As customers love their purchasing experience, retention rates and consumer loyalty increase.
Payments are much safer since data is encrypted and processed through fraud detection systems as it travels between gateways.
In order to help businesses ensure that payments are legitimate, digital wallets also include additional biometric identification layers, such as fingerprint scans and/or facial recognition.
A chance to expand your company internationally because payment gateways enable global sales of the goods and services.
Transactions are automatically accepted or denied, thus there is no need for you to manage declined transactions yourself.
The fact that payment gateways lower the risk of fraud should interest you as a business owner:
Only the consumer and their issuing bank are aware of the whole number because the customer’s card information or bank number is encrypted while being transmitted to the payment gateway.
To ensure the security of your clients’ card information, a payment gateway must be PCI DSS certified, which means it must adhere to particular security standards.
Card providers offer an extra security standard called 3-D Secure that mandates the usage of a one-time password for each card used to make an online purchase.
Finally, adding a mobile payment gateway to your new app can greatly increase your earnings.
According to Statista, the transaction value of mobile payment apps will reach around $14 trillion by 2022. If you want a piece of that enormous revenue, setting up a mobile payment gateway is an absolute necessity.
Which payment gateway provider should you choose?
Before we go into the specifics of integrating a payment gateway into your app, let’s first discuss which one you ought to pick in the first place. After all, you have a number of possibilities.
Here, it is best to list your requirements and then compare. The payment gateway providers to determine which one best suits your company. For instance, you should carefully consider which suppliers accept cryptocurrency as a supported payment option if you want to take cryptocurrency payments.
Some providers additionally mention the business categories they don’t accept, including gaming. Also, before to selecting the supplier, you should compare:
- How many nations does the provider operate in? (and can it accept foreign currencies)
- The variety of features that any provider can supply
- Transaction costs (especially the hidden fees)
- Integrations accessible
- Observance of the PCI DSS and PSD2 Policies
- Customer service is available.
- What are the most well-known payment companies now available?
Stripe
With the integrated developer tools, businesses can build branded payment pages, generate unique transaction reports or invoices, and do much more with Stripe.
Together with 24/7 customer service, a machine-learning fraud detection system is also offered.
In addition to accepting local payment methods, Stripe also supports all of the major payment methods and more than 135 different currencies.
Stripe charges a fixed 2.9% for foreign cards (1.4% for the European region) plus a $0.30 fee for online credit card transactions.
PayPal
Payflow Connect and Payflow Pro are the two payment gateway choices provided by PayPal.
Both are compatible with popular credit cards, digital wallets, and e-commerce platforms.
If you want to grow your business globally, Paypal may be helpful because it is accepted in 204 nations and takes 102 different currencies.
Each transaction will cost you a commission of 2.90% plus a transaction fee of $0.10.
PayFlow Pro also includes a $25 monthly cost.
But, a number of features, including improved security and completely customizable checkout, are already included in the price.
Braintree
Although not being as feature-rich as other providers, Braintree can nevertheless be integrated with a variety of e-commerce platforms, invoicing programmes, analytics apps, and plugins.
You may accept all major credit cards, electronic wallets, ACH deposits, Venmo, and PayPal with Braintree.
You can also accept payments in more than 130 other currencies. Also check Best Salesforce Tools In 2023
Recurring billing, a customer information manager, reporting tools, and developer APIs are further features.
For all payments, Braintree also provides data encryption, payment authentication, session management, and activity tracking.
Braintree charges 2.5% + $0.49 every transaction, plus an additional 0.75% for ACH deposits.
Amazon Pay
If you already sell your goods on Amazon, Amazon Pay might be an useful payment gateway provider for you because it allows customers to make transactions with just their Amazon login information.
It can also be integrated with well-known e-commerce systems like Shopify, BigCommerce, or Magento. However, these platforms only support the most widely used credit cards for payment.
Although Amazon Pay does not impose a setup fee, it deducts 2.9% plus $0.30 from all domestic transactions.
For overseas transactions, that percentage rises to 3.9%.
Skrill
Skrill has much cheaper transaction fees than other payment processors; for some payment methods, there is no price at all, and for others, the fee is as low as 1%.
Yet, the prices vary by nation.
Furthermore, Skrill accepts over 40 different currencies and 100 different payment methods, including cryptocurrencies.
At a cost of 1.9% per transaction, Skrill can now handle international payments.
The Skrill gateway is compatible with more than 20 of the most widely used eCommerce shopping cart platforms, including WooCommerce, Magento, Shopify, PrestaShop, and others.
Yet in order to make a purchase, users must have a Skrill account with a linked credit or debit card.
How to add a mobile payment gateway to your iOS or Android app?
Let’s dive into the specifics now. How do you add a payment gateway to the apps?
If you have already decided on a gateway provider, go to their home page and search for a page with implementation instructions.
Each service provider has a unique set of software development kits (SDKs) to utilise, and frequently, these kits come with comprehensive instructions on how to create the integration.
Both Android and iOS apps follow the same general procedures:
Sync Client-Side and Server-Side SDKs
Request a payment security certificate.
This final step is essential because your server handles payment information directly and must therefore adhere to PCI-DSS requirements.
You must complete two stages in order to receive this certificate.
In this situation, the first thing you must do is assess all of your information systems that store card data and address any issues that are discovered.
Your company will next go through an audit by one of the PCI Security Standards Council companies, and following that, you will receive certification and be able to start accepting payments.
Making your app PSD2 compliant is a further consideration.
You can learn more about PSD2 in our previous article. PSD2 is aimed at enhancing the security of all electronic payments and simplifying the customer access to their financial information.
About the technical steps, you can discover links to some of the guidelines for integrating payment gateways, both for iOS and Android system apps.
How to add a payment gateway for android
- Android SDK for Stripe Integration
- Android SDK for PayPal Integration
- Android’s Braintree Integration SDK
- Android SDK for Amazon Integration
- iOS Payment Gateway Addition Instructions
How to add a payment gateway for iOS
- iOS Stripe Integration SDK
- iOS PayPal Integration SDK
- iOS Integration SDK for Braintree
- iOS SDK for Amazon Integration.
As you can see, the instructions are rather lengthy and complex, and they call for particular coding abilities.
You could attempt adding the payment gateways yourself if you are comfortable working with SDK, understand how to use API, and are aware of the compliance requirements.
But if you run into some unanticipated issues during development, it could take both much longer and more work than you would like.
It’s a better option to employ a development agency to help if you aren’t sure you can handle the integration yourself, don’t have enough team members to complete it, or just want to make sure the payment will be fully compatible with all financial standards.
By selecting an agency, you’ll have a partner who has expertise implementing payment gateways to various sorts of apps as well as someone who is aware of all the potential pitfalls and how to avoid them.
Nevertheless, they may also assist you in developing a user-friendly UI for your app, handling maintenance, and making recommendations on how to make your mobile payment gateway safer.
Our in-house team of FinTech industry specialists has a tonne of expertise creating financial software, currency exchange apps, and integrating payment gateways into mobile apps.
They can also guarantee the security of the documents and personal data of your app’s users by adhering to regulatory requirements like CIS, NIST, and SOX. Also check Product Development Lifecycle
Adding a payment gateway was part of a handful of the projects we worked on:
Conclusion
It is now practically necessary to allow app users to pay for goods and services whenever they want and with only a click of a button.
But for that, you need a mobile payment gateway.
But which one from the many providers should you choose?
With so many choices, it’s simple to become confused and end up using a gateway that doesn’t provide the functionality you require or that has a lot of hidden costs.
To avoid wasting time, money, or stress, we advise consulting with software development businesses for expert assistance on this issue.
Due to the fact that Crustlab has been in the FinTech industry for many years, our developers can quickly suggest the payment gateway provider that will work best for your company and then assist you with the integration.