Slide Background

How to find the right

How to find the right

Payment Gateway
Payment Gateway

for your Mobile App in 2022?

for your Mobile App in 2022?

Finding the Right Payment Gateway for Your Mobile App_TWAM

Finding the Right Payment Gateway for Your Mobile App in 2022

Content Menu
Introduction
What is a Payment Gateway?
5 Tips to Choose the Right Payment Gateway for Your Mobile App
The Bottom Line

Introduction

Online payments have made our lives relatively easier – so much so that we don’t even bother carrying our wallets while going out. However, this increased reliance on online payments also makes it imperative for app publishers to integrate online payment support into their mobile apps. 

It doesn’t matter if you want to launch an e-commerce store or a food delivery platform; integrating a fully functional and secure payment gateway will help you enhance the overall usability of your app and offer ease of use to the customers. 

But, when it comes to integrating the right payment gateway, you need to be extra careful. The days of PayPal ruling the entire “online payment” market are long gone. Today, the market is filled with dozens of payment gateways, and each one of them caters to different brand objectives. In such a scenario, if you don’t choose the right payment gateway for your mobile solution, you may fail to retain your customers. 

Of course, if you are working with a mobile app development company in India, your development team will suggest the most suitable payment gateway solutions as per your app requirements. But, if you are executing DIY development, you’ll have to make this decision all by yourself. 

For further assistance, we present a few tips that’ll help you cherry-pick the best payment gateway from a pool of available options and make your mobile app user-friendly.

What is a Payment Gateway?

For people who don’t know, a payment gateway is a technology that allows mobile apps and websites to accept credit/debit card payments from users. The payment gateway automatically processes the payment from the customer’s account and transfers the amount to the merchant’s bank. It’s a standalone solution that you can integrate into your mobile/web solution through API integration. 

The reason why payment gateway integration makes complete sense is that it speeds up the entire development process. Since you don’t have to build a payment solution from scratch, you can develop your mobile app more quickly and accelerate the time-to-market. Moreover, a payment gateway is a ready-made solution that utilizes encryption to protect customer’s banking information against potential attacks.  

5 Tips to Choose the Right Payment Gateway for Your Mobile App

1. Decide b/w Dedicated and Aggregated Merchant Accounts

To receive online payments, you’ll need a dedicated merchant account. A merchant account is a separate account that receives money from the customers’ bank and transfers it to the merchant’s bank account. 

You can consider it as a pitstop that’ll temporarily store your money for a while before transferring it to your primary bank account. The main objective of a merchant account is to provide instant refunds to the customers. For instance, if one of your customers requests a refund, the merchant account will automatically manage the transaction instead of processing it from your bank account (which in many cases is not possible). 

Almost every payment gateway offers two different types of merchant accounts, i.e., dedicated and aggregated accounts. Dedicated merchant accounts are set up for an individual brand, whereas the latter is shared by a pool of companies. 

In general, dedicated merchant accounts offer higher flexibility and better control, but they are comparatively expensive than aggregated merchant accounts. Ideally, you should choose a dedicated merchant account if you own a brick-and-mortar business and want better control over online transactions. 

2. Processing Fees

Each service provider has different processing fees that mainly depend on the services being offered. Of course, if you own a large-scale enterprise, you can sign-up for all-in-one payment solutions such as Stripe and PayPal. They offer a multitude of services, but their monthly charges are considerably higher. Not to mention, they don’t leave any scope for negotiations.  

So, if you own and operate a small business or a startup, it would be better to dig deeper and find payment gateways that bridge the gap between cost and quality of services. These unconventional payment gateways offer better scalability, and there’s also room for negotiations.

3. Security

Security is another crucial factor that’ll help you choose the right payment gateway for your mobile application. Since the payment gateway will access customers’ banking details, it’ll be crucial to choose a solution that offers advanced security mechanisms against potential threats.

The general thumb rule suggests that you must look for a payment gateway that complies with PCI DSS Policies. These policies are specifically tailored to protect online transactions from scammers and unauthorized platforms. In addition to this, some high-end payment gateways also offer a few additional security features, such as fraud detection and automatic screening. All these features will provide additional security layers and offer a completely safe experience to the customers.

4. Hosted or Non-Hosted Payment Gateway

Payment gateways can be divided into two categories, i.e., hosted and non-hosted. The former payment gateway redirects the user to a different website to process the payment. Non-hosted payment gateways, on the other hand, process the entire transaction within the same app itself. It’s worth understanding that both hosted and non-hosted payment gateways have pros and cons of their own. 

For instance, hosted payment gateways don’t save any details on your app’s backend and are responsible for the overall security of the transaction. But, these types of payment gateways usually take too long to process the payment, which may result in increased abandonment rates. 

But, that’s not the case with non-hosted payment gateways. Since they process the payment within the same environment, they may store the user’s banking details on your server and raise security concerns. In saying that, however, non-hosted payment gateways are capable of processing high-volume transactions more conveniently. 

Again, if you are working with a team of mobile app developers in India, you can take their assistance while choosing between hosted and non-hosted payment gateways. They’ll analyze your specific business requirements and help you make the right decision accordingly.

5. Transaction Limits

Transaction limit is an important factor that you must consider while choosing a payment gateway for your mobile app. Some service providers set a transaction limit that you can process in a month. 

Of course, if you own a startup and have limited order requests, you won’t have to worry about these transactions. But, if you run an enterprise and process thousands of orders, it would be crucial to choose a package that meets your monthly transaction requirements. This will protect you from unexpected hidden costs in the long run. 

The Bottom Line

Payment Gateway integration has become a norm in the modern app development industry. If your mobile app doesn’t support online payments, there’s a huge probability that people might choose competitors’ products/services over your brand. To avoid this scenario, make sure to analyze your individual brand objectives and choose a payment gateway that ticks all the boxes.

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