In real life, we often face various typical examples of some payment gateways. POS is actually one of the major types, also known as point-of-sale machine. You are likely to come across it in any retail store. However, what about mobile applications? Is the mechanism of accepting payments in mobile apps is the same? How to build a mobile app that accepts payments?
The payment process in mobile applications has a specific structure. A regular user follows several steps that include:
- Choosing a particular good delivered by the app.
- Moving a good to a shopping cart.
- Completing the purchase.
Every time all the above-mentioned steps are performed, the cart hooks up with the integrated payment gateway in a mobile app that operates in the same way as any traditional POS. A card processor receives a request and approves the payment, sending all necessary transaction data to the merchant account where it will be stored for some time. It usually takes a couple of days to send the information to a merchant’s bank.
Considering the above-mentioned points, building a mobile payments app that will accept payments appears to be a tough challenge with many crucial details and aspects as a part of the entire development process. Whether you are about to introduce a dating app, reservation or travel service, e-commerce application or any other product, you will face the necessity to have someone to let you handle all electronic payments when it comes to physical goods and online services.
Moreover, the processing is expected to be smooth and fast to make customers pleased. No one likes to wait. For this reason, a smooth mobile app payment gateway is among major factors that define a successful mobile application. Merchant accounts are the must-have as well.
Types of Merchant Accounts
All payment processors are currently offering two major types of merchant accounts. They include:
- Dedicated account;
- Aggregate account.
Dedicated Merchant Account. This type of account is customized for a particular merchant individually. However, implanting it will call for additional investments. If you have a limited budget, that would be a challenge. On the other hand, you are free to choose from a selection of providers who charge different fees. On the other hand, a Dedicated account delivers more control over your funds and operations. At the same time, it comes with some slight drawbacks that typically include:
- Long acquisition;
- Submission of exhausting data;
- Indicating company’s and personal matters;
- Deep credit check, etc.
Considering those issues, some merchants prefer opting for another type of account.
Aggregate Merchant Account. This type of account has all your money in one place together with other merchants’ funds. Provided by some major payment options like PayPal, Braintree and Stripe, they still require some personal information related to your own and enterprise matters. On the other hand, you will appreciate a faster acquisition process featuring less complexity in addition to a more efficient access to your own account.
The time necessary to send money to the acquiring bank is the last but not the least issue you need to consider. It takes about two or three days when it comes to a dedicated account. The process is a bit longer with the aggregate account.
Mobile Payment Integration Solutions
When we speak of selling physical goods using mobile applications, we do not mean any in-app purchases or any other monetization models or strategies implemented within App Store or Google Play only. We are not talking of any digital products delivered to iOS and Android mobile platforms. All experienced developers are well aware of the fact that none of the mobile marketplaces deals with applications using third parties to sell different products. On the other hand, you are free to opt for any payment integration solution and steer clear of 30% from every purchase charged by major app stores. What are the ways of integrating payment gateway?
Payment Gateways for Mobile Apps with APIs
A huge selection of gateways allows processing purchases via credit cards using their APIs. Developers may consider it as actually the simplest solution. On the other hand, it is more complex that it seems at first sight. Implementing this solution means that you take the full responsibility of purchasers’ digital security. In other words, you will be guilty of any frauds that take place online, featuring users’ credit cards.
Another drawback you may face when opting for this solution is the inability of some gateways to accept payments through mobile applications no matter if those are iOS or Android apps. In other words, they do not actually support the tokenization process in addition to a lack of authenticated environment. It may eventually result in the necessity to handle the purchase program yourself.
Other Gateway to Stay in PCI
Other payment systems and services also let you operate within the Payment Card Industry without the slightest difficulties. They include some proven leaders in the market of payment gateway integration like Stripe or Braintree introduced by PayPal. Their main advantage is the fact they deliver an up-to-date native solution in the face of robust libraries for both iOS and Android platforms. They use all necessary encrypted data on the card and send as token. You should note that the above-mentioned services charge extra fees that are 2.9% + $0.30 for all types of cards regardless their specialization and issuers.
Stripe VS Braintree
When you ask how to integrate a payment gateway in a mobile app, the first thing you need to think of before implementing any of the payment solutions is whether it meets all necessary PCI security standards and requirements.
For example, the above-mentioned Stripe and Braintree can boast the most stringent certification level within the entire standard system featuring a PCI Level 1 Service Provider certification. It is another great plus in favor of those payment services. However, which one is actually better and more efficient? Let’s find it out.
When it comes to security standards, both services are certainly a good option. They use special secure vault to store customer’s personal data. Moreover, they can avoid any kinds of frauds by delivering the information directly to the payment servers. However, this is actually the only thing in common.
Introduced by PayPal, Braintree has come up with some fancier new features. Now it differs from what we are used to. It can now boast its new SDK that enables smoother and faster integration with mobile applications. It delivers a selection of award-winning features like a drop-in UI that can be easily customized across various mobile platforms in addition to some other features that include:
- Pay with PayPal Button;
- User’s feedback and full control over their purchasing experience;
- OneTouch mobile payments and some other essential features.
After its debut in 2011, Stripe has certainly taken the audience by storm and has proved to be a developer-friendly system. It comes with a set of essential security features letting buyers feel safe when completing any type of online transaction. For developers the key benefits include:
- Multiple Programming Language Support;
- Easy Deployment;
- API to store information on cards and subscriptions;
- Payouts transferred to bank accounts directly;
- 100% control over UI using system’s functionality;
- Over 139 different currencies available within the system.
According to the latest reviews and analyses, Stripe appears to be one of the simplest payment solutions for integration. You can use the system and keep in touch with all major payment procedures and processes. Developers will hardly face any difficulties when dealing with online transactions and payment processing.
Also known as the Collision brothers, the mobile payment system founders are planning to provide more functions by introducing an expanded API with a built-in infrastructure around checkout, fraud, mobile and more. Although a comparatively new solution, the system additionally highlights Stripe Connect making it easy for users to proceed with the payment within the app.
Merchants will take the advantage of safe and efficient access to all necessary information on user’s’ transaction and other business information. Moreover, developers are free to come up with additional analytic tools and accountant services on top of the available data.
Other Payment Methods
Unfortunately, Europeans do not have a chance to benefit from all those features provided by Stripe, Braintree and some other integrated payment solutions. On the other hand, some countries have a huge selection of their own systems. For example, Sweden can boast Mondido, Klarna, iZettle and some other great tools.
However, we should still note that US-based market has some huge fundamental differences. In other words, if a developer hailing from the United States wants to gain success on a European market, he or she will certainly need a pinch of local experience.
As you can see, implementing payment gateway in a mobile app is a tough challenge that requires professional approach. Lunapps experts can easily handle the task considering all your preferences and likes. We will deliver a cost-effective and reliable solution at the most affordable rates.
Our company can boast a team of experienced and qualified developers, programmers UI designers and testers who work in a team to bring your every idea to life in spite of its complexity! Why still wasting time? Contact us right now.