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Today, everyone understands that mobile devices are ubiquitous. We all have witnessed a shift towards e-commerce and it is quite obvious that having an extra marketing and sales effort will prove advantageous for your business. To maintain your position in the market, you must know how to build a mobile application that accepts payment.

Now, you have a mobile application and you have a product that you want to sell. The next step is you need to get paid for your product.

Payment may not be as easy as it sounds. You may want to get paid by cash or by credit/debit card. You might want the users to save their card information on your mobile application for potential future transactions. Users will only do so if you ensure safety of information. Hence, you are looking for the simplest and easiest payment system possible to reduce friction between user’s shopping cart and delivery of your product.

A necessary integration in your mobile application– Payment Gateways, are integrated to allow customers to make payments without moving to any other platform. If the customer were to move to any other platform for payment-

  • You would lose users
  • Most users would be agitated and end up not buying the product.
  • It is not a good marketing strategy

In contrast to the above- a payment gateway integration with a shopping cart will be an effective marketing strategy to your business. You may have an amazing UI for your app that attracts customers but, a  payment facility will instantly close the sale for you.

The developer payment space has never been more competitive- developers can set up payments in their apps through “gateways” (software developer kit) from a variety of providers. These gateways vary in features, functions and fees but have one thing common that they make sure you get paid.

The next question is which payment gateway should you use? Since there are a dozens of payment gateways available, it can be a complicated decision. In making this decision, you might have come across many people who will tell you that the hardest part is not the mobile application and which platform to build on but choosing the right payment gateway. Let’s answer a few questions to help you get closer to making a decision-

Is the payment gateway supported on your ecommerce platform?

Assuming that you do not already have a website, it will never happen that you choose a payment gateway first and then the platform on which you build a mobile application, however, you can choose the right gateway depending on your requirements.

Do you want a payment gateway and merchant account or an all-in-one payment service provider?Some payment providers only provide payment gateway that sits between your website and the payment networks. They usually require you to have a merchant account, the bank account that the money passes into and it is different from your regular business bank account. Some payment gateways like stripe provide a combined payment gateway and merchant account which means you will be using their merchant account.

It is easier if you go for a service provider that offers both the gateway and the merchant account. It is more feasible for small business owners, however, big business houses can set up their own merchant accounts and opt for only the payment gateway.

Do you want to offer PayPal?

Most people these days have a PayPal account which means that you don’t have to necessarily limit yourself to just one payment gateway. You can give multiple payment options to your customers. PayPal accounts are the most popular secondary option that is available and most people like to pay via PayPal. It can be offered as an alternative if not the main payment method. It may sometimes also serve as a good backup in case of any problem with the main payment gateway.

What are the fees?

Payment Gateways and merchant accounts charge a different amount that may vary depending on the term of use whether it is on a monthly basis or fees per transaction or based on percentage of transaction amounts. They may charge an extra amount for payments directed from international customers.

How long is the contract?

On an average, a payment gateway provider might lock you in for a long term contract or about two years which may not be such a good idea. The problem will arise when you are not happy with their service and may want to change. Hence it is advisable that you go for a gateway on a monthly basis.

Does the provider have a good reputation?

Payment Gateways are an essential and critical part of your mobile application, so you will want to work with a provider that has a good reputation in the market. Since some payment providers have had problems in the past, they may have blocked a few merchants money due to some causes. Be a little extra careful while signing the contracts.

Does the payment gateway do what you need?

Payment Gateways usually provide limited functionalities so make sure that you are opting for the one that best suits your needs. You may be looking for more than just one time payments from customers or maybe looking to take recurring payments from customers.

Does the payment gateway support the payment methods your target market uses?

From the well known to the well established Visa and MasterCard to very niche payment used in just a few places, you have to be sure of the payment methods that people are familiar with. Choose a Payment Gateway that supports your methods. You will end up losing users in case the Gateway that you are using does not accept customer’s preferred payment method.

If you have carefully studied these points, you are on your way to choose the right Payment Gateway.

Contact: If you intend to have a payment gateway integrated mobile app for your business, to get closer to your prospective buyer, just reach out to Copper Mobile and we shall demonstrate how effectively and securely we have taken care of businesses requiring a payment gateway business solution.

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