We are moving towards a cashless future, away from the hassles of a kind of transaction which involves complications like storage issues, overhead costs, slower checkout process. Undoubtedly, eCommerce and on-demand industries are the major markets that benefited massively. Instant transactions with the help of wallets and other forms of payment gateway integration changed the business system for good.
The ongoing Covid 19 pandemic crisis once again invoked the importance of cashless transactions and online payment more than ever before. Since cash can easily carry a virus far and wide, to stay away from contagious diseases cashless transactions can be highly effective. As most parts of the world are experiencing lockdown in their homes, more apps will prefer integrating payment gateway solutions.
As global markets are pushing for a cashless economy, online payment systems like Google Pay, Apple Pay, and PayPal are taking the lead when it comes to safe and convenient online transactions. Very few merchants with an online business platform are left to utilize the advantages of payment gateway and they can hire API integration services to incorporate payment gateways in mobile apps or websites.
If you own a mobile application or plan to create one, monetizing not just means more revenue for you, but more customers.
Wallet and card payments solve several pain points. And payment gateway integration in the mobile app is definitely an added benefit for your users. Customers find it convenient to use wallets over cash for the following reasons:
-> No hassle of carrying cash
-> Full utilization of discounts and coupons
-> Zero hassle of changes
-> Plenty of options to choose from, like wallets or cards
What benefits do businesses get by providing the convenience of online payments? With cash related security issues like loss due to theft, fake currency, they can assure the safe transfer of money from customers. Payments gateways come with strong, unbreakable security, making the possibility of frauds and breaches not just harder, but close to impossible. It also reduces the chances of errors like a miscalculation, giving more assurity to the users.
Now imagine there is an app for the grocery or the bank. With a payment gateway in the mobile app for these, life just gets easier! Customers are opting for grocery apps like Instacart for faster checkout and home delivery.
For any business, automation is an important growth factor. As consumers prefer faster transactions, they are likely to opt for a service with faster transactions and a safer payment option. In order to move on with the mechanized world with stiff competition, automation is not an option if you want to succeed.
Mobile payments can be broadly classified into two types of payments – In-App Purchases and Digital Payments. For all digital resources sold, such as subscriptions, in-app purchases are a compulsion on both Android and iOS platforms, from which Apple or Google charges a 30% commission for the first year.
But for all selling something real – a physical commodity, you are free to choose your own payment gateway, thereby avoiding paying a hefty commission to Apple or Google.
A payment gateway processes all forms of payments, i.e. credit card, debit card, bank transfer or any other forms of payment depending on their regional availability.
Users look through your products and choose what they need. These products go into a cart. The cart is linked with a payment gateway provider. When a user checks out, he proceeds to a payment gateway provider.
The necessary information, i.e. credit card details or bank details are provided and the payment gateway processes the payment from the user’s card or bank and an approval code is provided. The amount is later remitted to your bank account linked with the payment gateway provider, after charging a transaction fee, usually in the range of 3-5%.
Read More: The Role Of Magento Payment Gateways In Magento Store Development
To implement a payment gateway, you’ll first need to have a merchant account on a payment gateway provider. There are usually two types of accounts that you can create – a dedicated merchant account or an aggregated merchant account.
If you are an individual business owner or a merchant, then a dedicated merchant account is tailor-made for your business transactions. But since this is a bespoke service, you would need to make some additional expenses to maintain this account.
Different sets of payment gateway providers will charge different fees. However, this gives you much more control of your funds and expenses; but it has some disadvantages as well. The purchase process takes longer and it takes a deep insight into the credit check.
An aggregate merchant account is one that combines several companies. For this account, every retailer will still need to offer some info about your company but being part of an aggregate merchant account is much less complicated.
PayPal and Stripe are examples of gateways that provide aggregate merchant accounts to their retailers. The disadvantage with aggregate merchant accounts is that they have less control over the period the money takes to complete the transaction process. But payments are faster, they are cheaper to maintain and are easier to set up.
Payment gateway integration is not easy, but for Mobile App Development Services Company, it is a cakewalk with the right technologies. To make this easier for you, we have discussed how to integrate payment gateway in the mobile app in detail.
There are a large number of payment gateways that allow you to process credit card transaction data through their APIs. At first glance, this looks very simple. But when you choose to integrate a payment gateway API, you place the responsibility for the security of credit card data on your own shoulders as the data now passes through your mobile app.
The first and most important requirement for any service that collects payments is to adhere to the Payment Card Industry Data Security Standard (PCI-DSS). You can find a list of service providers that are PCI-DSS compliant in the Visa Global Registry.
If you do not want to avail of the risk of API, then you can choose this as a much safer option.
Over our 9 years of expertise, working with hundreds of startups and fortune 500 companies, we understand the client’s needs like no other. And after helping numerous firms grow their business by monetizing, payment gateway integration is a cakewalk for us!
WRITTEN BY: Atman Rathod
Atman Rathod is the Founding Director at CMARIX Technolabs Pvt. Ltd., a leading web and mobile app development company with 17+ years of experience. Having…
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