Comparing Popular Payment Gateways: Which One is the Best Fit for Your App?

It’s estimated that there will be 2.05 billion global digital buyers in 2020 and the number is set to increase rapidly in the upcoming years. The growing opportunities in the world of online sales has led to a mad rush among e-commerce businesses owners to capture a significant market share. Moreover, mobile ecommerce sales make up to 63.5% of total ecommerce sales in 2019.This is why most e-commerce business owners are leaning on mobile apps to meet their goals. Not only does mobile-commerce makes the shopping experience more handy and accessible for shoppers, it benefits businesses by omitting a need for shelf space. One of the basic components of a good online shopping mobile app is a payment gateway.

So what is a payment gateway and how they function in a mobile app, what are the different types of payment and methods by which they can be integrated in an app? One needs to know about the different payment gateways so one can pile up advantages and disadvantages related to them. But let’s start with the basics first.

What is a Payment Gateway?

The Process

Step I: A user adds items/services to his e-cart which is linked to a payment gateway provider.

Step II: The user completes the purchase using ‘Pay’ button, the app leads you to a page that requires some financial details.

Step III: The users are then required to fill in a bank account or card details.

Step IV: Once the user fills in the details and submits them, the gateway sends a request to the bank that issued the user’s credit or debit card.

Step V: The bank approves the payment request through the payment system after thorough analysis and verification. It sends back an approval code.

Step VI: After the transaction gets accepted by the system, an authorized code is sent by the bank issuer to the seller.

Step VII: Finally, all this lead to a debit on the customer’s account which is reflected as a credit on the seller’s account.

Things to Consider for Payment Gateway Integration

I. Seller Account Types

- Dedicated Merchant Account

In case the mobile app business is run by an individual business owner, they can do with a dedicated merchant account. Being a tad bit pricier than the other type of seller account and can strain a small budget business. However, the hefty price tag offers exclusive features like customer request adjustment and quicker transactions etc. While app payment providers have different fee structures, the seller has complete control over funds and expenses here.

- Aggregated Merchant Account

This type of seller account is the more popular kind among mobile app business merchants. It stores all funds including other people’s money. Business merchants are required to give some personal information for opening an aggregated merchant account. Although the transactions involved are simpler in nature but they take longer to complete as compared to dedicated accounts.

II. Type of Items being Sold

III. Security Certificates

Payment Gateway Integration Into Mobile Apps

I. Credit/Debit Card Payment Gateway Integration

II. PCI for Payments

III. SDK to Integrate Payment Gateways

Most Popular Payment Gateways

A.) PayPal Payments Pro

B.) Stripe

Major Payment Gateway Players

C.) Authorize.Net

D.) Braintree


At Promatics, we have wide experience in working on mobile apps with well-integrated payment gateways. If you have an app idea and are clueless about where to begin or if you have an app but are confused about the payment gateway to choose, we would be happy to help! Write to our team of mobile app tech experts and ask for a free quote.

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