Categories: Mobile App Development

How to Integrate Payment Gateway in a Mobile App?

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Introduction of Payment Gateway Integration:

The era we live in today is full of online stores, and online shopping has become integral. The competition is tough, and that is why e-commerce business owners are opting for different methods to succeed.

That is why payment gateway integration has become an integral part of online business. It makes buying/selling things easier for users and sellers both. The consumer can avail any service like buying an item or booking tickets and pay online within seconds.

Mobile app payment is especially crucial for businesses that want to sell their products internationally. Thus, every mobile application nowadays has integrated many payment gateways.

In this blog, we will talk about different gateway providers, and cost for payment gateway integration.

What is Payment Getaway?

A payment getaway is a software that lets merchants integrate electronic transactions for their e-commerce website or mobile applications.  Without payment processing software, online transactions would not be possible. They support many common and popular financial systems. It includes Visa, MasterCard, and American Express and so on. They also have the ability to verify user data quickly and accurately.

A survey done by Moody’s research done sheds some light on the usability of this system. It states that from 2011-2015, the payment getaway integration into apps/sites contributed to 0, 4% of market GDP. It not only raised $74 billion but also increased job by 2.6 million.

How do they work?

  • Firstly, to use the feature of payment gateway on a mobile application, you require an internet connection.
  • Then, when you click on pay and buy the selected item, you are taken to a page that requires some details.
  • The users are required to fill their bank card details into the form.
  • The high-speed net connection ensures that the payment takes only seconds to complete.
  • At this particular point, payment gateway gets the card details. Then it gets transferred to the respective bank.

  • Next, the bank approves the payment request with the system (Visa, MasterCard and so on). It in turns analyzes and verifies the purchase.
  • Once the system accepts the transaction, the bank issuer sends an authorized code to the seller.
  • Lastly, the appropriate amount is debited from the consumer’s account and transferred to the seller’s account in a day or two.

Things to consider before integrating Payment Gateway in your mobile app

Here are some things you should consider before you go for payment gateway integration:

  • Seller account types

According to your needs and requirement, you can choose between two types of accounts. One is a dedicated merchant account and other is aggregated merchant account. We have talked about these accounts below in detail.

  • What products are you selling?

What products you are selling also affects the decision regarding payment gateway integration.  It means that if you are selling a physical good your payment processing method will be different as compared to when you sell digital goods.

With physical products, using any payment method is simple. But with digital goods, the same is not true. For the latter, the Google play store and Apple App Stores doesn’t let merchants use third-party e-commerce payment services. That is why; each transaction is done using the platform-specific account (Gmail or Apple Id). After that, you have to connect to a payment getaway for money transaction for physical goods.

  • Security certificates:

Payment gateway integration means that you will be responsible for the security of user’s data. For this, you need to purchase a PCI DSS compliance certificate that gives you authority for this.

No matter which payment provider you choose, you will require a certificate. For that you will have to follow these steps:

Firstly, design an information system for storing the card data of the user. The design should meet the requirement of PCI DSS. The respective person will see it and will give you ways to fix the issues found in the system.

Secondly, once changes are done, a PCI certified security standard council company will audit your Organization. Based on his reports; the decision regarding your certificate will be made.

Payment Gateway Integration into mobile apps

When a customer opens the e-commerce mobile application to buy things, the selected items go in the cart. The cart is linked to a payment gateway and once you choose a provider the details of the transaction are stored in the merchant’s account.

Merchant Accounts- Different types

Payment processing tools offer two types of merchant account. They are:

  • Dedicated Merchant Account
  • Aggregated Merchant Account

The Dedicated Merchant Account

For an individual business owner, the dedicated merchant account is best suited for your transactions. To integrate this account into your app, you will need to pay extra, and that might be an issue if you have a small budget. The account requires big investments as it provides advanced features. The features include- adjustment of customer requests, the process of money transaction is quick. The whole process takes around 3-4 days to complete.

All the payment providers charge a different fee. It ensures your control over funds and expenses. The only issue is that the overall process is complex and takes a long time and requires a deep credit check.

The Aggregate Merchant Account

For an easier approach, you can employ this account. The Aggregate Merchant Account stores all funds including other people’s money. Most merchants use this account.

The best payment processing apps like PayPal and Stripe offers the aggregate merchant account only. For this account, the merchants have to give some personal information.  Using this account means the transaction is simple, but it takes a longer time to complete the payment (5-6 days).

Direct credit/debit cards payment getaway integration

Many payment gateway providers allow users to make a transaction using debit/credit cards. For this, it uses the API of the mobile application. The process of integrating cards into the app will make it easy for users, but for you, it is definitely a complex process.

The disadvantages of this process are:

  • The responsibility of making the transaction process safe and secure is solely yours.
  • While integrating the API, you have to take care of the security of every digital transaction.
  • If any fraud or hacking of consumer’s data happens, all the responsibility will be yours.
  • Also, the merchant might face some issues with this, as it doesn’t support all payment methods. Due to the lack of authenticated environment, it doesn’t support the tokenization process.

Payment Card Industry or PCI’s for payment

  • If you want to play it safe, you can employ the Payment Card Industry or PCI’s for the payment process. It is much safer and less complex for merchants.
  • The security provided by PCI’s is top-notch. Thus, many gateways like Stripe, Braintree uses this method.

The advantages of including this method are:

  • A good comprehensive native solution
  • A library for both iOS and Android which are updated regularly
  • It encrypts the data fully on the card. But it will require an additional service fee of 2.9% +$0.30 for all cards.

Best Payment Gateway Methods

  • PayPal Payments Pro

PayPal is the best and most popular payment integration method for e-commerce sites. Launched in 1998, it supports consumers of 202 countries and 25 currencies. It is the ideal provider for merchants who have no experience with such things. With PayPal Payment Pro, you can create a personal account and then link it your online store or software.  The transaction fee is 2.9% of the amount excluding $0.30. The monthly subscription fee charged by PayPal is $35.It is a widely used service globally with over 100 million subscribers.

  • Stripe

Stripe is another popular e-cash service. The features included in it are:

  • Web-hosting journal
  • Administrative panel access
  • Enhanced security
  • User-friendly

The price charged by Stripe for each transaction is 2.9% plus a fixed fee. It also provides the user with discounts if their total monthly turnover is $80,000.

Advantages of this payment gateway include-

  • Detailed documentation
  • Easy integration with mobile application

It provides technical support all day but only through e-mails. No telephonic support is there.

  • net

The Authorize.net operates in the US and Canada. It provides a reliable service that is easy to use. Sellers can register to this by making special accounts. The best part about this payment processing tool is that it has the highest security. For secure transactions, it has advanced fraud detection algorithms (Advanced Fraud Detection Suite). The drawbacks include a huge cost for integrating as compared to the above providers. The monthly tariff is $25, and the registration fee is $49. Also, each transaction has a charge of 2.9% + small fixed fee.

  • PayTm

The PayTm payment gateway provider operates in India. It is available in seven Indian languages and provides services like bill payments, travel and ticket booking and so on. The company states that over 7 million Indian merchants use PayTm for accepting payment into their bank accounts.

“Read More: Develop a Mobile Wallet App like Paytm”

Braintree– A PayPal subsidiary is also another great payment gateway provider. Dwolla is also popular among many merchants.

  • Alternative

If you don’t wish to employ the above methods, you can collect payment directly. Also, you can integrate the wallets of the respective platform like Apple pay for iOS. It will make it their job to keep the data and transactions process simple and secure.

Now, talking about the former option- collecting payment directly, it has some pros and cons. Let’s take a look:

Pros:

  • It requires smaller commissions for transactions.
  • It makes setting up electronic payment methods easy and simple.

Cons:

  • The cost involved in integrating direct payment is huge.
  • Also, you have to take care of security measure so that user’s data is kept safe.

Using SDK to Integrate Payment Gateways In The App

 

  • Payment gateway integration into the mobile application is a complex procedure. It also complicates the architecture of the app. Thus, to ease the process all payment gateway providers give developer with their SDKs.
  • The software development kit easily connects to the existing features/functionalities of the app.
  • The SDKs include numerous libraries respective to the mobile platform. You can download and install it from the official site of the supplier
  • The libraries provided are crucial as they make supporting and maintaining the software easy. They have complete control over an operation which is carried out during the transaction. It also includes complete details of the consumers.
  • Another benefit of downloading libraries is that now you don’t have to purchase a PCI certificate.
  • Moreover, if your mobile application is about selling/lending digital merchandise, you will have to include payment gateway of OS you are dealing with. For iOS, you will have to integrate Apple Pay and for Android, Google pay.
  • Including these also makes the transaction simple. Also, the client’s card data are kept secured by the platforms only.

Cost of integrating payment gateways into mobile apps

The next thing you should know is the time, cost and resources payment gateway integration requires.

Time:

No matter which payment gateway provider you choose, connecting it will take around 40 hours.

Next, the mobile application depending on IOS and Android will get tested with its updated functionality. It will take around 20 hours more.

The payment gateway needs technical support the entire time of app’s operation. Thus, add some 5-10 hours monthly.

Cost:

Taking the time noted above into account and hourly rates of developers, the cost of payment gateway integration in an app will require $3000-$10000.

Conclusion

It doesn’t matter whether your mobile application is for travel or hotel or e-commerce business. It is necessary that you have a payment getaway; it makes the payment process simple for users and gives your business an edge.

The right payment getaway integration for payment in any app is crucial. It needs to be legal and secure so that users are confident in using it and your business blooms.

At Endive Software, we have huge experience in developing mobile apps, so that can benefit you hugely. You can reach them at the following email.

Ravikant Chouhan

Ravikant Chouhan, soft by nature and sharp from mind. Being an Engineer specialized in Computer Science, he carries similar curiosity for both; technical world and automobile industry. He keeps himself indulged in discovering new things and with this passion and the vast knowledge attained by him has helped the company to grow at a faster pace.

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