Guidelines to Incorporate Payment Gateway in a Mobile App

Anshul Sharma
Anshul Sharma, CEO & Business Head at Fluper Limited
Published on Jun 20, 2019 in Mobile App Marketing
Guidelines to Incorporate Payment Gateway in a Mobile App

The era we live in is full of online store and online shopping becomes an inseparable part of our lives. The market competition is really difficult and that’s why E-commerce business owners are adopting different methods to succeed. According to Statista, mobile shopping accounts have a large percentage of E-commerce retail sales. It becomes the reason for Payment Gateways’ popularity. A lot of apps that help in online payments have been developed by many Mobile App Development Companies for Android and iOS devices.

In this blog, we will know more about Payment Gateways, how do they work, and tips of payment gateway integration in mobile apps.

What Is the Payment Gateway?

Payment getaways are software which let merchants integrate electronic transactions for their e-commerce website or mobile app. It is the best way to handle online transactions.

Without payment processing applications, online transactions would not be possible. These applications support many common and popular financial platforms. They include MasterCard, Visa, American Express, and many others. They also have the capability to verify user data rapidly and accurately. According to a survey, it states that from 2011–2015, the payment getaway integration into applications or sites contributed to 0, 5% of market GDP. It not only increased $75 billion but also raised the job by the 2.5 million.

Mechanism of Payment Gateways

Guidelines to Incorporate Payment Gateway in a Mobile App

You must want to know, how do payment gateways work. Let us take a brief look into the mechanism of payment gateways.

  • To use the feature of payment gateway on a mobile app, you need an internet connection.
  • When you click on pay and buy selected service or product, you are taken to a page that needs some details.
  • The app users are needed to fill their bank card (credit/debit) details into the form.
  • The high-speed net connection gives you the surety that the payment takes only a few seconds to complete.
  • At this certain point, payment gateway fetches the card details. Then it gets transferred to the respective bank.
  • The next step is that the bank approves the payment request with the system (Visa, MasterCard, and others). It analyzes and verifies the purchase that you have made.
  • Once the bank’s system accepts the transaction then the bank issuer sends an authorized code to the seller.
  • The final step is the proper amount is debited from the account of the consumer and transferred to the account of seller in a day or two.

In-app Payment Gateway Implementations

When a customer opens the E-commerce mobile app to purchase things, the selected item goes in the shopping cart. The cart is linked to a payment gateway and once you select a provider the details of the transaction are stored in the account of the merchant.

Types of Different Kind of Merchant Accounts

There are two chief types of merchant accounts which payment processors are providing.

Dedicated Merchant Account

If you are an individual business owner, then this dedicated merchant account is suitable for your transactions. But in term to implement it, you will have to need to pay additional expenditure and this will create difficulties specifically if your budget estimate is not so higher. A various set of providers will charge different fees. However, it ensures the owner to control his funds and expenses; but it also has some disadvantages. The purchase process takes longer time and takes a deep insight into the credit check.

Aggregated Merchant Account

You can employ this type of merchant for an easier approach. The Aggregate Merchant Account is one stop where you can store all funds including other people’s money. It is more famous and most merchants use this account than the Dedicated Account. The best payment processing apps like PayPal, Stripe, and Square all are providing the Aggregated Merchant Account only. For this account, the merchants have to provide some personal information. Using this account means the transaction is less complex, but it takes a longer time to accomplish the payment around 5 to 6 days.

Direct Credit Card Integration OR Using API’s

There are various gateways that allowing the consumers to make purchases through debit/credit cards using the app API for payment. It is not an easy task you will have to face a number of problems while implementing it. The main disadvantage is that you have to owe the whole responsibility of processing a secured purchase with the digital transaction while incorporating the API. This means only you will be responsible if there is any wrongdoing of online funds or fake dealing.

Implementing the Payment Card Industry

If you want a safe then you should consider Payment Card industry or PCI. It does not create a problem as in the earlier case. Because of its security factors, a lot of payment processors like Stripe, Square or many others are opting for PCI. It includes a comprehensive native solution and updated strong library for both iOS and Android. Another benefit is using full encrypted data on the card as give it as a token. However, here you will have to bear an additional service charge for all types of cards.

Top 4 Popular Payment Gateways


Paypal is one of the best and most popular payment gateways for e-commerce sites. It is being the most reliable app since it’s launched in 1998. It supports users in 202 different countries and 25 currencies.

Ratings: 4.4

Downloads: 52 M+


This is another very useful app overall for monitoring transactions and payments. There are various features in this app such as web-hosting journal, Administrative panel access, highly-secured and user-friendly, etc.

Ratings: 4.3

Downloads: 1 M+


Square Point of Sale (POS) is the free Android and iOS app that offers you everything you need to take payments and operate your business. In this app, you get the latest processing features of your merchant terminal.

Rating: 4.6

Downloads: 1M+


By using Skrill you can easily send money with low transfer fees. You can use this app in more than 180 countries across the globe and it supports 40 currencies.

Ratings: 3.9

Downloads: 100K+

Wrapping up

That’s all from my side. I hope this information will help you to set up the payment system if you have never done this before.

It may be best for you to choose a company that has end-to-end solutions to implement your app ideas. Fluper is the best among all E-commerce App Development Companies. It has helped hundreds of startup companies and businesses across the world by providing high-quality apps. If you have any questions left, contact to Fluper on their official website... They will consult you and offer a free estimate of your project.

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About the author
Anshul SharmaCEO & Business Head at Fluper Limited

Mr. Anshul Sharma is responsible for overall Executive Operations, Pre-Sales, Technical Functioning, and Structuring of Corporation. With extensive experience of 4+ Years in Sales and Marketing, he is a deserving and competent architect to forecast a...

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