Today while the majority of people prefer online shopping, business establishments rely on e-commerce business solutions. As a result of the phenomenal increase in online business transactions the world over, which is very easy, convenient and fast, the e-commerce apps started getting integrated with payment gateway. This enables the users of the app to complete the transaction in just two clicks. Users of the e-commerce app can now effect their payments very easily for purchasing some items or availing some services from an e-commerce website.
It can be booking the flight ticket or reserving the hotel room or paying the bill after eating in a restaurant or booking a cab. Since payment gateway has made the task of making payment much easy, marketing firms are able to increase the volume of their business by incorporating the payment gateway in their e-commerce app. The in-store mobile payment market value is expected to reach $503 billion by the year 2020 and as a result it is imperative for all e-commerce sites to expedite payment gateway integration of their app. Any e-commerce website is now required to have a merchant account and a payment gateway. There is not much difference in the procedure for payment gateway integration of the mobile app.
The e-commerce mechanism
The customer who wants to shop from the e-commerce website selects the items and adds them one by one to the cart. After getting connected to the Payment Gateway in the e-commerce app the request for payment will be made to the card processor and immediately the payment will be approved. The payment information is shown on the merchant account. Until the information is forwarded to the bank of the merchant the information remains stored.
The payment processors offer two types of merchant accounts:
- Dedicated Merchant Account
- Aggregated Merchant Account
Merchants and individual business owners use the Dedicated Merchant Account. Though the businessman who has the dedicated Merchant Account can effectively control his expenses, this type of account has the following disadvantages:
- The merchant has to pay more to implement this account
- The fees vary with the payment processors
- Purchase process takes more timer
- Goes deep into the credit check
The more popular type of account is the Aggregate Merchant Account. This account enables the businessman to keep all his funds in one place including other’s money. All leading payment processing companies in fact provide the Aggregate Merchant Account. The user of this account is required to provide his personal details. The payment process with this type of account is quick and easy.
Disadvantages in using API
Many Payment Gateways that allow the users to use their credit or debit cards for shopping are using the API app for processing the business transaction. However, it has many disadvantages. As a result of integrating the API one has to take the entire responsibility of processing the transaction and as a result he will be held responsible for fraudulence as well as misappropriation of funds. API will not accept payment through mobile apps and as a result one may have problems in making payments through some of the gateways. API doesn’t support tokenization process also.
PCI – the safer option
The Payment Card Industry (PCI) is a better option since it is not as risky as API. Payment processors like Stripe and Braintree use PCI only.
What are the main advantages of PCI?
- Comprehensive solution for online payment processing
- Updated library for both the operating systems – Android an iOS
- Using full encrypted data on the card
Users of PCT are required to pay additional service charge for all cards.
Leading Providers of Payment Gateway Service
PayPal is widely preferred for online shopping as well as booking tickets. Users of PayPal SDK mobile can accept credit card payments and Bitcoin. PayPal is used in about 203 countries and it supports 26 different currencies. Using PayPal one can pay to different people at a time. The user can have own checkout page and with PayPal one can create simple invoice. The user is provided with report of his financial transactions and the facility of split payment is also provided.
Stripe is identified as one of the best payment processors. The simple design of Stripe facilitates customization. Stripe supports large volumes of libraries and is also implemented with many APIs. Stripe supports both Android and iOS platforms. User can get customized payment forms to enhance business. Monthly financial reports are provided and one can make payments easily in more than hundred currencies. Bitcoin is also accepted. Social media buttons can be integrated for the payment process.
The features of Braintree are similar to those of Stripe and it can process payments from various apps like PayPal, Google Pay, Apple Pay and credit cards. Braintree is used in more than 40 countries and it supports 130 different currencies. Braintree ensures safe, secured and stress-free payment processing since it uses PCI. By using PayPal and Venmo, the payments are authorized by a single click. Recurring bill facility is also provided.
Both Braintree and Stripe ensure efficient and reliable payment gateway service and both have almost the same features and advantages.
Advantages of SDK Integration
Each Payment Gateway provider offers developer SDK. SDK is the library data that provide credit card information during the processing. This makes the process easier an also protects from the risks related to PCI compliance. The required software tools are made readily available on the website of the payment gateway processor. SDK also facilitates developing of payment forms which are used to gather audience data.
The users of Stripe have two options – a pre-developed form and option to create own form. Those who create their own forms are able to get the full advantage of the UX without depending on the pre-built widgets. Apple developers are trying their best to provide smooth payment gateway experience for iPhone and iPad users. Users of iOS can make their payments by just one click of their mobile app using their credit card. In the case of Google Android the Google Pay in the beta version facilitates accessing the payment data in the customer’s Google account.
Only the mobile payment system offers the tokenization process. The mobile library helps the service provider to tokenize the confidential data of the user. Subsequently the data will be forwarded to the server. Data is exchanged between the servers through API keys. All the details about the payment gateway integration and the instructions to users are available on the official website of the developer of the mobile app.
Have Payment Gateway in your Mobile App
E-commerce business men, travel and tour promoters and those who are in the hotel industry should make it a point to integrate Payment Gateway in their mobile apps. By way of simplifying and speeding up the online payment process the payment gateways enable the businesses to function more efficiently. One should be careful in selecting the payment gateway process as well as the processor.