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.
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.
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:
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 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.
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.
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.
Payment processing tools offer two types of merchant account. They are:
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.
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).
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 advantages of including this method are:
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 is another popular e-cash service. The features included in it are:
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.
It provides technical support all day but only through e-mails. No telephonic support is there.
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.
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.
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:
The next thing you should know is the time, cost and resources payment gateway integration requires.
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.
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.
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.
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