Industry growth necessitates an integration of advanced solutions. It is often lack of adaptability and personalization that leads to an industry’s downfall. This is where the eCommerce industry has evidently been ahead of the game, with its dedication to innovation and a flare for customization. Its unrestrained evolution has brought with it some much needed efficiency: the implementation of seamless payment processes for customers with the help of top app development companies. The argument for integrating a payment gateway is simple. The easier the payment process, the higher the sales. Needless to say, it’s imperative for a smooth customer experience.
Online banking and e-wallets, and the security and convenience that comes with them, has already pushed users to make their purchases online. A payment gateway is just the cherry on top. But let’s define it more clearly. A payment gateway is a software application that authorizes and processes payments made through an app or website. It facilitates financial transactions between customers and the merchant by securely collecting credit card information on the frontend and transferring it to a payment network (which processes the e-commerce payment), and then finally sending the transaction details back to the application. Thus, a payment gateway follows a three-step process:
1) Encryption: It encrypts data between the seller and the retailer.
2) Request: As soon as the payment processor gets approval from the credit card company, it authorizes the transaction request.
3) Fulfillment: Once authorized, it permits the application to proceed to the next step.
Essentially, a payment gateway provider makes it much easier to process several types of electronic payments. It’s like an all-in-one solution that seamlessly and securely transfers funds from buyer to seller.
Let’s also create a clear distinction between a payment gateway and a payment processor.
A payment processor is responsible for analyzing and transmitting transaction details to an issuing bank. This data includes a credit card number that can be linked to a bank account.
A payment gateway, on the other hand, authorizes the transfer of funds between purchaser and retailer. It’s an overall system that includes payment processing.
In fact, there are different kinds of transactions that a payment gateway can follow:
· Authorization transactions confirm that the cardholder has sufficient funds to fulfill the order. These transactions are usually used for orders that take a designated time to manufacture or ship.
· Capture transactions process payments that have been previously authorized. This transaction works to credit funds to a merchant’s account.
· Sale transactions occur during immediate purchases of items (e.g., e-tickets, subscriptions, etc.) It’s a two-step process in which the cardholder first gets authorized. After successful authorization, the funds get transferred to the merchant. This type of transaction is technically a combination of authorization and capture transactions.
· Refund transactions take place as a result of a canceled order. The seller is required to return the purchaser’s money.
· Void transactions are almost the same as refund transactions with the exception that the transaction can be made even if funds haven’t been transferred yet.
Mobile app development for iOS and Android has led to a variety of payment gateways to be widely available on e-commerce applications. Braintree, PayPal, Stripe, and Apple Pay are some of the most commonly used. Choosing a payment gateway for your business might seem like a simple task. However, when you take the responsibility of securely passing credit card information through your application, it’s important to give the process some thought. After all, you are now accountable for the sensitive data that users enter on your mobile app. It’s crucial that the chosen payment gateway is compliant with industry standards, a set of policies called Payment Card Industry Data Security Standard (PCI-DSS).
Depending on the functional requirements of your e-commerce business, you might want to take the help of a mobile app development company in Kuwait in order to converge on a payment gateway that caters to your needs. Here is a list of key factors to consider:
· Choosing an appropriate integration method – You can choose to integrate a hosted payment gateway that requires your customers to leave your website in order to make the payment. Even though this method calls for a lack of control on your side, and a lack of trust on the customer’s end, you might be more comfortable using an external payment processor given that PCI compliance is not required at your end. Then there is the Direct Post method which lets your customers make the purchase on your website itself, but still doesn’t require PCI compliance by you. This is because consumer data goes directly to the processor without being stored on your server. Finally, the non-hosted payment gateway method allows for API integration. This means that you have complete control of the transactions that occur on your website. Of course, it’s costlier and it becomes imperative that you be PCI compliant, but it also allows you to set up the payment system exactly the way you want it and adapt it to your business needs.
· Customizing the payment process – Regardless of the size of your business, customers will expect a quality website that employs the most secure and safe payment methods. You can make your customers feel confident in their purchase by using a payment gateway that allows you to customize the entire payment process, from your brand’s font and logo to the color palette.
· Fees and service agreements – Compare your business model to the payment gateway’s fee structure. Consider setup fees, contracts, and required transaction fees.
· Scalability and ease of checkout –This facet is undoubtedly important for mobile apps. You need to ensure that you’re providing your users with an adaptable checkout experience that is specifically optimized for a range of different mobile devices and network types.
· Security certificates – This is key to creating a sense of trust and loyalty in your customers. Users need to feel safe when making an online purchase, especially when it comes to entering vulnerable data like credit card information. It’s always useful to secure your chosen payment gateway with an additional database software.
· Merchant location and supported currencies – Most widely used gateways accept currency from almost anywhere in the world. However, some payment gateways might enable merchants to charge consumers in their own native currency, while others might need the setting up of a currency exchange. Geographical factors shouldn’t be overlooked. Other features like e-billing and smart charge back management should also be checked for.
Choosing the correct payment gateway has a lot to do with your business performance. It’s directly tied to your brand’s image and profitability. Design Master, a long-standing Android and iOS app development company in Kuwait, has the necessary experience and tools to implement and integrate the right payment gateway for your iOS or Android app. Along with our trained mobile app developers in Kuwait,we have done considerable work in e-commerce mobile applications and strive to empower your app with the best features.
Take a look at our portfolio here, where you’ll find an extensive list of e-commerce websites and mobile apps, fully curated by us: https://www.design-master.com/#Portfolio
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