Online shopping has evolved standard, and online transactions have raised from an excellent bonus to a must-have feature for modern buyers. However, today almost every business owner enables credit card payments in their online store. But the spans need online merchants to accept mobile payments. According to Statista, the ratio of mobile payments is magnifying. It also verifies that taking payments via mobile app is a primary requirement. In this blog, we’ll go in-depth about this subject. So, let us discuss some technical details, payment gateway integration methods, and many more things.
An online store should also deliver several methods to pay for the preferred products or services. For your already refined viewers, the presence of desired payment methods sometimes becomes a crucial factor in conducting a purchase. Furthermore, this blog describes the methods of payment gateway integration.
What do you mean by a Payment Gateway For Mobile Apps?
A payment gateway is a tool that enables customers to pay for buying something directly from the app and allows merchants to receive online credit/debit card payments or mobile payments. The primary operations of such a payment gateway are accepting, protecting, and transferring transaction details. The payment gateway even accomplishes it in a quick and secure way, being equally advantageous for both members of online shopping. Usually, some partakers take part in the payment gateway function, which consists of:
- The issuing bank
- International payment system
- The merchant bank
Everyone collaborates to safe data processing and enables complete funds transfers. The issuing bank also inspects whether there are sufficient funds in the customer’s bank account. The payment system approves or declines the online transaction. Although, the acquiring bank credits the money to the merchant’s account.
The above-mentioned activities take no more than three-four seconds. If everything runs seamlessly, the sale status turns to “paid.”
The payment gateway is especially required to take payments by credit & debit cards. However, this is not the only payment mode available. Major payment gateway providers usually keep more payment modes like e-wallets, bank transfers, and mobile banking.
What is a Merchant Account?
To reach its revenues, an eCommerce business must retain a merchant account – a bank account used to process and take online payments. So, a merchant account is delivered by a merchant acquiring bank, which carries on financial risks and costs standard fees for its products or service.
Payment Gateway vs. Payment Processor
Let us discuss the difference between a payment gateway and a payment processor? The payment gateway is also liable for collecting credit card details from the buyer and transmitting it to the payment processor. It occurs at the start of the transaction process and its end.
Whereas, the payment processor transmits the payment details and appropriate customer data safe from the customer’s bank to the merchant’s bank. When the transaction proceeds, the payment gateway transfers its outcomes with a customer: authorization or refusal levels.
Payment Gateway Integration Methods
The payment system itself comprises the payment gateway and the mode of its integration. So, let’s go through four standard ways of payment gateway integration into an eCommerce business’s website: Hosted, Self-hosted, API or Non-hosted methods, and Local bank integration.
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Hosted Payment Gateways
A hosted payment service to assess the charge from a customer to the merchant carries the customer to a payment page hosted externally (but still associates with the payment gateway). As soon as the approval is there, a customer sets back to the online store. Then the checkout gets finished. Some general instances of such payment solutions are PayPal, Stripe, and AmazonPay.
Benefits:
- No need for PCI compliance
- The payment gateway provider is in control of data protection
- Flawless integration into an online store
- The procedure is quite amazing
- Plug various plugins for web stores
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APIs or Non-Hosted Payment Gateways
A non-hosted payment gateway enables finishing payments directly on an eCommerce store with the help of APIs (Application Programming Interface). Preferring this particular integration method. Even merchants can easily handle the user interface of the checkout page from start to end.
Benefits:
- The web page can be created as per your requirements
- Quick checkout functioning
- Device-friendly such as mobiles, tablets, and so on.
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Self-hosted Gateways
If predicting complete control of all buyer’s transactions, this mode is likely the first-rate fit. The self-hosted method of integration enables adapting all online transactions on the web. And then transmitting them to the payment gateway via end-to-end encryption. Instances contain QuickBooks Commerce’s B2B Payments or Shopify Payments powered by Stripe.
Benefits:
- The online store has complete control over the transactions
- Style modification is available
- Suitable for user experience
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Local Bank Integration
This sort of integration allows merchants to move funds locally to the bank used by the customer. After moving with the transaction, the customer sends a landing page indicating the successful funds transfer.
Benefits:
- Suitable for small and medium businesses that require a single payment
How can you Integrate a Payment Gateway for your eCommerce store?
When viewing hosted solutions, you could check ready-to-use plugins present in the market. Such payment gateway providers contain the basics you require. Usually, it’s just a part of code to be integrated into your eCommerce website, also inserting a new payment choice to your list.
Incorporating with the API comprises eCommerce programmers and a web designer. Basically, this model suits medium to large-scale companies. And where branding performs a more significant position.
Custom Payment Gateway Integration
The available payment gateways may not entirely fulfill your business requirements. In this matter, you may also require to acquire a customized payment gateway.
When do I require a custom payment gateway?
Let’s go through some of the primary criteria:
- You are a merchant to stop any third-party services
- If you are a billing firm desiring to update or substitute your software
- And when you are a quick-growing payment gateway provider exploring methods to enrich your product and expand the market share
- You are an IT company that aspired to become payment gateway providers
Moreover, it can be expensive and time-consuming to personalize a gateway. Yet, there are many benefits to it. It also allows fulfilling business-precise requirements while trimming charges on recurring fees that outward payment gateways cost. Personalizing a payment gateway also creates an online business as a payment gateway provider. And which implies it can set fees for other merchants that use its payment gateway.
Wrapping up
Opting for an inappropriate or ineffective payment system could reduce your customers. Evaluate your rival’s preferences and calculate their significance. According to payment gateway integration methods. If you are operating a small business, it would be adequate to use a third-party system. But for more apparent market partakers move forward with a personalized one.
