Businesses are going digital, and people are rapidly adopting online shopping. Sellers are concerned about how to handle online transactions, particularly mobile apps, when it comes to online shopping.
So, the big question is: how can you add secured payment methods to your on-demand app? To understand why payment gateways are so popular and how they are integrated, continue reading the blog.
Moreover, on-demand apps are really popular, making it mandatory for businesses to provide multiple payment options. Many users make payments online via credit cards or in-app wallets.
In a report, Statista.com states that by 2023, the total transaction value of digital payments will reach US$9.46 Trillion!
This astounding figure demonstrates the significance of providing online payment options and integrating a secure gateway.
So, without further ado, let’s begin.
What Are Payment Gateways?
Payment gateways are secure, digital payment processing systems that facilitate transactions between customers and sellers during online purchases.
For instance, a user places an order online on your app. Here, the payment gateway acts as a mediator that securely transmits your payment information via your mobile app to the bank’s payment processor.
In brief, the gateway ensures that your financial data, such as credit card details, remains safe and protected from hacker attacks!
The payment gateway is beneficial for both buyers and sellers. Moreover, along with the payment gateway, there are three different parties involved in the operations, including:
1. The issuing bank checks if the buyer has enough money in their account to complete the payment.
2. An international payment system that confirms or rejects the transaction
3. The merchant bank credits the money to the seller’s account.
All of these parties work quickly, merely in a fraction of seconds, to complete the payment. If everything goes well, the user gets the notification Successful Payment, and the purchase is marked as “paid.”
In simple words, the payment gateway is used to process the transaction via the user’s debit or credit card. However, it also supports other online payment methods, such as e-wallets, direct bank transfers, etc.
How Does Payment Gateway Work?
It’s impossible for a mobile app to handle secured in-app payments without the help of a payment gateway and app payment system integration.
The payment gateway is a middleman that handles approving the transaction, securing the data, and processing the order on the app.
Payment gateways, essentially, connect these:
- The seller’s app
- The user’s shopping cart
- The seller’s bank
- The buyer’s bank
Here’s how the payment gateway actually works:
- When users make an online purchase on your on-demand app, they’ll be directed to the payment gateway at the checkout.
- They’ll enter the payment details, like credit card information, at the payment gateway.
- The payment gateway will encrypt this sensitive data to keep it safe and send it securely to the payment processor.
- The payment processor will then check if the user’s payment details are valid. It will also see if they have sufficient money in their account and perform other fraud checks.
- Then, the payment processor will send these results back to the payment gateway, which will then display if the transaction is approved or declined.
- The payment gateway will complete the transaction and notify the user of their purchase if the payment is approved.
Advantages of Integrating Payment Gateway in Your On-demand App
If you are building an on-demand app like Uber, Grab or Gojek Clone, integrating a payment gateway is a must for your business.
Considering it will help you leverage these top benefits:
Safe and Easy Payments
Payment gateways encrypt and protect user’s data like credit card details, ensuring secure transactions every time. Hence, users can confidently make purchases online using on-demand apps, knowing that their sensitive financial information is safe.
More Sales and Customers
Mobile apps with payment gateways offer a smooth checkout experience, leading to higher sales and conversion rates. Thus, by integrating a reliable payment gateway in your app, you can attract more customers, generating more revenue.
Instant Payment Processing
Payment gateways allow faster authorization and verification of all transactions. This gives customers immediate payment status updates. In brief, a payment gateway enhances the overall user experience with its real-time processing.
Secure Diverse Payments
As mentioned, payment gateways support multiple online payment options. In short, it allows you to add and accept multiple payment options. And when that happens, users will be able to freely use your on-demand app like Gojek and make payments via credit or debit cards, e-wallets, and even mobile payment systems. Your business will be able to cater to different customer preferences and easily expand your user base.
Efficient Transaction Handling
Integrating a reliable payment gateway automates payment processing and deposits funds into the merchant’s account. It streamlines all the financial management hassles, reduces manual work, and efficiently prevents errors!
Popular Payment Gateways
Considering which payment gateway would be best for you? Well, that depends on your location. Users in different countries prefer using apps offering different payment gateways.
However, if you’re willing to get a generic overview, here are the top 3 payment gateways used around the world.
1. PayPal
PayPal is a well-known payment platform. It works on mobile apps and websites across 203 countries. Moreover, it accepts all the major credit cards like Visa, American Express, Mastercard, etc.
2. Amazon Pay
Amazon Pay is a quick and secure payment system. It offers easy logins and payments for shoppers and allows merchants to accept payments with Amazon. It is available in eight countries.
3. Stripe
Stripe is a payment gateway platform that’s globally popular. It offers high-end security and also ensures smooth financial transactions for your business. Moreover, it provides an open API, making it simple to integrate with your business system.
Final Words
Integrating a payment gateway is vital for on-demand apps.
Well, it makes transactions secure and easy for users, making them feel confident in using your app again and again.
With different payment options and fast processing, more customers are attracted, resulting in more sales. Put simply, by integrating reliable payment gateways, you’ll be able to leverage a ton of benefits. Moreover, it simplifies financial management. So, if you want your on-demand apps like Gojek, Grab, or Uber to be successful and to keep your users happy, make sure you only integrate a reliable payment gateway!
