“The future of money is digital.”
– Satoshi Nakamoto (Pseudonymous Founder of Bitcoin)
What if you could seamlessly accept customer payments with just a few clicks? Well, payment gateway integration has made this dream a reality for all businesses. By incorporating a payment gateway into the app, businesses can enhance the shopping experience for customers and improve brand identity.
According to a study, the worldwide payment gateway market was valued at USD 26.79 billion in 2022 and is projected to grow at a CAGR of 22.2% between 2023 and 2030. Hence, it depicts room for business growth. However, businesses are wondering how to create a payment gateway.
Well, as an author at Dev Technosys, I have worked with my project managers to comprehend how online payment gateway integration works in mobile apps and how it benefits businesses. It will also cover choosing the right payment gateway and integrating it into a mobile app.
Quick Summary: “Do you want to understand how to make a payment gateway and how it works? This blog will discuss the benefits of payment gateway integration and provide tips on successfully implementing this feature into business operations.”
Table of Contents
What is Mobile Payment Gateway Integration?
A mobile payment gateway adds secure services to an application that can handle in-app purchases. Simply put, it helps users purchase goods via mobile applications. This service acts as a middleman who encrypts customer payment info and communicates with their bank for authorization.
It also simplifies the user checkout process and keeps the business PCI compliant. All this is done through APIs that connect an application to the gateway’s system. Payment gateway integration can be complex, but it boosts sales and also ensures a seamless customer experience.
If anyone wants to integrate payment gateway in an app, an e-wallet app development company can help. Professionals will implement secure payment processing APIs and ensure compliance with industry standards to enable a seamless in-app purchase experience for users.
Market Analysis- Payment Gateways
- The total value of transactions in the Digital Payments sector is expected to reach US$11.53 trillion in 2024.
- Total transaction value is estimated to grow at an annual rate of 9.52% (CAGR 2024-2028), resulting in a projected total of US$16.59 trillion by 2028.
- Digital Commerce is the market’s largest market, with a projected total transaction value of $7.62 trillion by 2024.
Market size of payment gateways in selected countries worldwide in 2023 (in billion U.S. dollars)
Source: Statista
- According to the data structure for 2023, the United States has a significantly larger payment gateway market than other countries around the world.
- It should be noted that only a few countries have access to these figures.
- No numbers were available for Indonesia, Hong Kong, Nigeria, or Australia. Payment gateways include Stripe, Braintree, Adyen, Square, and Worldpay services.
How Does A Payment Gateway Work?
A payment gateway is a virtual bridge that connects customers with e-commerce stores or online businesses. When customers check out, they enter their payment information on the merchant’s website, and this is where the gateway steps in. Here, you will learn how an online payment integration works. So, let’s start!
- Collect and Secure Payment Details.
- Verification and Fraud checks
- Authorization and Fund Movement
- Settlement and Confirmation
1. Collect and Secure Payment Details
When users checkout on a website, they choose a digital wallet option or enter their credit card information. The gateway collects all the customer’s details (number, CVV, and expiry) and then encrypts them to keep. However, it does not store this sensitive information or safeguard its financial details.
2. Verification and Fraud checks
The gateway relays the encrypted data to the merchant’s banks. After this, the merchant sends it to the customer’s bank for verification. Hence, different fraud checks happen here, ensuring sufficient fraud and the card’s legitimacy.
3. Authorization and Fund Movement
Once everything checks out, the customer’s bank authorizes the transaction and sends it to the merchant’s funds. The transaction is approved if the customer’s account has a sufficient balance. Here, the merchant minus the processing fees and deposits the remaining money into the customer’s account.
4. Settlement and Confirmation
Finally, the settlement process takes some time. After completing it, the gateway sends a confirmation to the customer and merchant to finance the transaction. It lets users know their orders have been successfully placed and the payment processed. This is how the payment gateway works.
How Can Businesses Benefit From Payment Gateways?
As you know, customers nowadays prefer a secure and smooth payment process. If the fintech app development company facilitates an effective payment gateway, businesses can gain various benefits that significantly boost their bottom line. Hence, here is a list of the top five ways entrepreneurs can leverage mobile payment API to succeed.
- Increased Sales
- Cost Saving
- Global Reach
- Security
- Good for Branding
1. Increased Sales
By using payment gateways to provide a secure and convenient payment experience, entrepreneurs can increase their business sales while improving cash flow. Additionally, faster transactions mean more completed purchases and less waiting.
2. Cost saving
Service providers may reduce operating expenses, helping the business save resources and time efficiently. Moreover, if businesses build an online payment app like PayPal and choose the right online payment gateway, it can facilitate international transactions.
3. Global Reach
Several payment processing app gateways support different currencies, making it easy for vendors to sell internationally. Hence, by offering services worldwide, businesses can simultaneously increase their user base and boost revenue.
4. Security
As you know, online payment gateway integration securely handles sensitive financial data and ensures compliance with industry standards. With effective payment software development solutions, businesses can win the customer’s trust, protecting your business from fraud.
5. Good for Branding
By integrating a payment gateway into a mobile app payment, businesses can control the payment experience and ensure that it aligns with specific brands. Then again, a good payment experience can protect the brand and cost customers and businesses.
Many of you must know the demand for PayPal App Development, but do you know how it reached this point? No, right, it’s because of the payment integration gateway. However, the process of integrating payment gateways requires a complex mindset. When my team and I worked on this, we faced some failure, but after a lot of effort, we got whatever we wanted. This phase has taught us many things that will help us in the future. So, based on my experience, I am going to share the easiest way to integrate payment gateways for your mobile app that will help you attain your business goals.
Narayan Das (Project manager)
How To Integrate A Payment Gateway For Your Mobile App?
Payment gateway integration into your mobile application is critical, allowing users to make convenient transactions within your best ewallet applications. Do you know how to build a payment gateway? Well, those unfamiliar with the exact procedure for how to implement a payment gateway into mobile applications should learn the following critical steps:
- Choose Your Payment Gateway Partner
- Setting Up Your Merchant Account
- Obtain the Significant API Credentials.
- Gateway Configuration and Customization
- Implement the Payment Gateway Into Your Mobile App
1. Choose Your Payment Gateway Partner
First, have a payment gateway provider that aligns with your application’s needs and target audience. You must consider factors like supported methods of mobile app payments (mobile wallets, credit cards, etc.), transaction fees, security compliance, and global reach.
2. Setting Up Your Merchant Account
Many payment gateways require merchant accounts, which act as your business bank account for online transactions. As per mobile app development company in USA. When setting up a merchant account, you must verify the provider’s business information and establish terms to receive funds.
3. Obtain the Significant API Credentials
API means “Application Programming Interface”. Once your account is active, you can revise your API credentials. It is how the gateway will communicate with the app to process transactions. To start, you have to generate the API credentials from the payment gateway providers.
4. Gateway Configuration and Customization
Here, you can configure settings like account payment methods, payment types such as credit or debit cards, currency, and recurring billing options. You can also customize the look and feel of the payment flow in your application to match your branding.
5. Implement the Payment Gateway Into Your Mobile App
Now, you can start coding. The payment gateway provider will give you code snippets and guidelines to help you. You must incorporate the code into your trending eWallet apps for money transfers to submit
transaction data to the payment gateway and obtain confirmation. Hence, you can launch your app with the payment gateway integration.
Must-Have Payment Gateway Integration Features
Nowadays, a secure and seamless experience is critical for any business. However, selecting the proper payment gateway integration goes beyond just processing transactions. So, if you want to stay competitive in the market, consider the following critical features in your mobile payment platforms:
- Secure Transaction
- Multiple Payment Methods
- Transparent Pricing
- Mobile Payment Optimization
- Payment Data Storage
- Recurring Billing
- Real-time Reporting
- PCI Compliance Assistance
- Multi-currency Support
- Risk Management Tools
1. Secure Transaction
As security comes first, consider features like data encryption and adherence to PCI-DSS compliance standards, safeguarding sensitive customer information.
2. Multiple Payment Methods
Offer different payment methods, such as e-wallets, debit and credit cards, credit cards, and alternative payment options, to accommodate a large audience.
3. Transparent Pricing
Effective payment gateway integration services avoid hidden fees and provide a transparent pricing structure outlining transaction costs and monthly charges.
4. Mobile Payment Optimization
Develop an E-Wallet mobile app like Google Pay that facilitates a smooth checkout experience on tablets and smartphones, a rapidly growing trend in online shopping.
5. Payment Data Storage
While some businesses store customer payment information, some gateways facilitate secure storage options for a faster checkout experience that require an evaluation of security measures.
6. Recurring Billing
You can simplify the subscription services with automated recurring payments for membership or regular deliveries.
7. Real-time Reporting
With this feature, gain valuable insights into customer behavior, sales trends, and chargeback rates with a detailed reporting dashboard.
8. PCI Compliance Assistance
PCI compliance is complex, so partner with an experienced React native app development company that offers guidance and support to ensure adherence to security regulations.
9. Multi-currency Support
Accept mobile application payments in different currencies that cater to international customers. It will expand your global reach.
10. Risk Management Tools
To minimize fraudulent transactions, ensure features like velocity checks, risk scoring, and address verification.
Top Mobile App Payment Gateways
Undoubtedly, you know all the primary criteria for selecting the best payment gateway for the application; you may now look into the available options. Hence, we have outlined the top mobile payment gateway providers you must know about:
Apps |
Description |
PayPal | Renowned brand offering a comprehensive online payment solution with customer support and recurring billing. |
Strip | Featuring a payment API, multi-currency support, recurring billing, and an SDK for swift in-app integration |
AmazonPay | Facilitate hassle-free checkout and secure payment at online stores and applications. |
Authorize.net | Popular gateway, offering call the functionalities along with user-friendly API for in-app payments |
Braintree | It streamlined in-app payment processing with customer support fraud protection, and easy-to-use. |
How Do You Choose The Right Payment Gateway?
If you want to create a mobile wallet app, you must know that payment integration is one of the most crucial factors you must keep in mind. So, specific points must be known by any Android, iOS, or hybrid app development company before you choose your mobile payment gateway:
- Know Your Target Audience
- Payment Methods That Users Prefer
- Cost
- Security Certificates
1. Know Your Target Audience
The target locations are the foremost things you should know before selecting your payment gateway provider. Some providers may not be in many nations, and some gateway providers may be famous around the world. So, it is a must to know your target audience.
2. Payment Methods That Users Prefer
Before integrating a payment gateway integration to your mobile application, make sure you understand the user’s preferences, as different gateways enable different payment methods. Research shows that more than 40% of mobile app customers prefer multiple payment options for their transactions.
3. Cost
All payment gateways charge considerable fees. Some charge higher costs, and others charge monthly and setup fees per transaction. These payment gateways can be integrated during on-demand app development procedures.
4. Security Certificates
A mobile payment gateway must be trustworthy when it comes to vulnerable data. By including database software, securing payment data is accomplished, which is one of the major factors you should check when choosing payment gateways.
5. Customized Options
Before adding recurring payments into your mobile app, ensure that your gateway provider, such as an iOS or Android application development company, provides a configurable environment. This infrastructure is critical to the business’s growth.
How Much Does It Cost To Integrate Payment Gateway in Mobile App?
Mobile payment gateway integration costs vary depending on the fee structure, the amount provided, and the volume of transactions processed monthly. The cost of app development and payment gateway integration into the app also depends on the feature you want.
For instance, the integration cost will be higher if your app requires advanced features like fraud prevention, recurring billing, or international payment. On average, you can estimate the payment gateway integration cost to be $2000 – $5000.
However, if you want to know more about the cost of integrating payment gateway, consult a business intelligence development company. Professionals will guide you on attaining your business goals at a low cost through payment gateway integration.
Wrapping Up!
Payment gateway integration is critical for businesses looking to make a strong online presence and transaction security. With an effective payment gateway integration, businesses can streamline the payment process, boost sales, and increase customer trust. As a result, entrepreneurs are investing in payment gateway integration to enhance their business operations and take their online transactions to the next level.
If you are also one of them and looking for the same, just go for it. If required, you can request assistance from any UPI payment app development services provider. For instance, we at Dev Technosys help our clients in customizing and installing the payment gateway software that would be the best first for their business.
Frequently Asked Questions
1. How Much Does it Cost to Develop an e-wallet App?
On average, the ewallet app development cost can range from $8000 to $25000, depending on factors such as the app’s features, complexity, and design.
2. What Is Payment Integration For A Mobile Application?
A payment gateway is software, enabling merchants to collect online payments from customers directly through the mobile application.
3. What Factors Must Be Considered When Selecting A Payment Gateway For Mobile Applications?
When choosing a payment gateway, consider the following factors:
- Cost
- security
- Types of cards allowed
- Multiple currency support
- Mobile payment support
4. Why Are Payment Gateway API Significant?
Payment gateway API facilitates a seamless payment gateway integration into mobile applications. It also provides control over the user experience and enables convenient conversion tracking.
5. How Does Payment Gateway Integration Improve The Brand Image?
A trustworthy and hassle-free payment gateway helps build trust between vendors and customers in online business, boosting sales and improving brand image.