We are living in an era of online shopping and e-commerce. Purchasing something online is a piece of cake, even for kids. E-commerce apps integrate and implement payment gateways to enable online transactions in a few clicks. The customers can perform various payments, such as booking tickets, paying a bill for a meal in a cafe or restaurant, etc. via an e-commerce site or app.
A payment gateway is a must for any mobile application, be it an Android or an iOS app. The ground for it is that convenient payments boost income. According to a BI Intelligence report, in-store mobile payments are about to reach $503 billion.
How does payment gateway in mobile apps function?
A payment gateway is just a transporter of customer payment data to the financial organization network. Then, this data is transmitted to the interbank network channel, like Visa or MasterCard. Finally, the money goes to the business owner’s bank without the payment gateway being involved.
Three main participants are distinguished: payment gateway, banking network, and user account.
In brief, the process works as follows:
- The customer inputs the necessary information in an application;
- Transaction data is transmitted to the gateway. Then it is sent to the user’s bank.
- The bank addresses a request to the payment system (the popular ones are Visa, MasterCard). It evaluates the customer payment reputation and investigates the operation requirements.
- The bank which issued the card sends the security code to perform the operation.
- The code is delivered to the payment gateway and from there to the customer.
These transactions take only a few seconds if the Internet connection is good. Security is crucial for the payment gateways, as much money, and personal data are used by this payment method. That is why much attention has to be given to user confidentiality while performing the integration of a payment gateway in the Android app.
Tips for adding a payment gateway in android apps
Developers of Android apps need to consider several peculiarities of the integration process.
We prepared detailed instructions on how to integrate a payment gateway in an Android app.
1) Develop a strategy
The right planning is the key to success. Payment capabilities may be different for various kinds of apps. Define the strategy based on the company business model and customer expectations. For example, if you are willing to sell virtual goods via in-app purchases, it should take less than 30 seconds.
2) Select the best company providing the payment gateway services
We recommend you follow our best pieces of advice on selecting the most suitable provider. It should have the following features:
- The gateway should be internationally accepted (the exception is gateways for companies dealing with local trade and don’t plan to go worldwide).
- Various payment options should be offered (don’t lose potential customers and make sure the company provides as many payment methods as possible).
- The checkout experience should be fast and seamless (for instance, it may be done in only one click using the API and other optimization tools).
- The gateway API should be involved, as it significantly improves the checkout process by making a purchase in one API call and requiring fewer steps from the user. Some gateway providers offer their own payment API, which is a substantial benefit.
- Security policies and regulations are essential. The data payment gateways work with is sensitive, including card numbers, location, and other personal information. The storing of the data in a database after transactions isn’t desirable.
The implementation procedure is generally fast and simple. However, implementing certain payment gateways in an Android application may require additional effort to receive the most advantages. Other essential points you should consider are:
- Cost
- Compatibility
- Customer service
Our recommendation is also to deal with famous and experienced companies in the sphere. Payments are a serious thing, so trust the popular companies with a good reputation.
What are the most popular mobile app payment gateways?
PayPal
The first and most popular processor is PayPal. It offers split payments and allows you to hold your own checkout page. PayPal accepts payments in 26 currencies from over 203 countries. It has over 277 million users around the globe. The only thing that needs to be entered is a personal user ID. This processor monitors suspicious activities to guarantee full data security. A standard fee comprises 3.4% and 30 cents for each operation. If your monthly transaction income is more than $3,000, another plan with a lower commission is offered.
Stripe
This processor involves performing payments via social media websites. It also provides monthly reports on payment activity. Another advantage is that you have an option to personalize the design. Choose your app colors and make an original payment form. The best practices show that it is going to boost the customer experience. It manages payments in more than 100 currencies and supports many libraries: Android, Ruby, PHP, etc. The standard commission is 2.9% and $0.30 for every payment. Stripe is an excellent solution for app developers, as it provides the SDKs (software development kits).
Braintree integration
It is a perfect choice for any business size. It is extremely flexible and supports popular payment methods (credit, debit cards, Android pay, Bitcoin, etc.). This app is considered the simplest option for purchasing any items or services via an app on any device. Braintree Integration is successfully used by such popular applications as Uber and Airbnb.
Other famous apps are Dwolla, Google Checkout, and Authorize.Net.
Conclusion
A decision to implement a payment gateway for an Android application is a crucial step towards new business opportunities. However, everything depends on the integration provider. Start by defining your requirements and strategy. Then, pick up the most suitable company for your needs. It is essential to choose the right app, which will meet all your requirements.