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Hello and welcome to another “All About Apps” edition from the Cleveroad studio.
Today we are going to discuss a very hot topic “how to integrate a payment gateway into
your app”
If you are a shop owner and you want to perform payments, all you need is a payment gateway
and a merchant account.
In the case with a mobile application, the situation is almost the same.
In fact, it's very important to have this account in both cases, because this is where
your money are held before they will be moved to your actual bank account.
With the mobile app the mechanism of the payment process is as follows: a user chooses some
goods in your app, they are moved to a cart, this cart hooks up with a payment gateway,
which performs the same function as a POS in a retail store.
What's next?
The request is sent to a card processor, your payment is approved, the payment information
goes from the gateway to the merchant account, here it's stored for several days until it's
sent to a merchant's bank (your actual one).
There are two types of merchant account suggested by third-party payment processors: dedicated
merchant account and aggregated merchant account.
The first type is set up just for you individually, and, of course, it's made for additional money.
The sum depends on a provider.
Having the dedicated merchant account implies more control over your money
But it has a downside: the acquisition process can take a lot of time and you will need to
submit an exhausting information about you and your company matters, then you will need
to go through a deep credit check and so on.
If you choose the aggregate account, it means that your funds are in one bunch with other
merchants' money.
There is one more difference between them: the time it takes to get your money.
With the dedicated merchant account, your money will be sent to your acquiring bank
in two-three days.
With the aggregate merchant account, it may take a bit longer.
Define a type of products you want to sell because there are two different scenarios
for digital content and physical goods.
If you intend to sell digital content then you will deal with Google Play Store or Apple
App Store policies for in-app purchases.
These platforms don't allow to involve third-party payment processors when it comes to the selling
of digital products or content inside your application.
On the other hand, if you're going to sell physical goods, both platforms recommend using
mobile payment gateway providers.
If you want to convert IOS app to Android or vice versa, subscribe to our channel, because
this is what our next video is going to be about.
Just follow the link in description below.
There are a bunch of mobile payment solutions nowadays.
Some of them are widely known, others are fresh and not so popular yet.
Let's concentrate on those which are widely spread among e-commerce mobile application
developers.
PayPal, Braintree, Stripe, Dwolla and Authorize.net.
They all offer their benefits and different conditions of collaboration.
However it is more important and interesting to figure out how to integrate these services
into your app For these purposes every provider offers a
developer SDKs.
These include strong mobile libraries that facilitate your job since credit cards data
are processed by them.
It means that you make less effort for implementation
Stripe, for example, offers two options: you can either use their pre-built form component
or build your own from scratch.
That's good because you have control over UX since you have an opportunity not to use
predefined widgets.
Using provided mobile libraries, users' sensitive data will be tokenized by provider's side
and then redirected to your server, which is also called authenticated environment.
After these manipulations, you will be able to charge a card in your authenticated environment
and finish the transaction.
'What's a use of payment gateway then?' you can ask.
It would be reasonable.
The point is that only provider's side knows and works with user's payment data.
This transfer of the tokenized data from payment gateway provider's server to your server is
usually carried out by means of API keys.
Most providers have them for free on official sites for developers as well as detailed instructions
as for how to integrate payment gateways in Android and iOS applications, solutions for
other platforms, program code fragments in different languages.
More details on how to integrate a payment gateway into your app you will find in our
article
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See you next time guys, bye.