APP DEVELOPMENT

Which Payment Gateways to Consider for your Application

What is a Payment Gateway?

Payment Gateways act as in­ter­me­di­aries be­tween you and your pro­ject, tak­ing away the re­spon­si­bil­ity of in­ter­act­ing with the banks di­rectly. In ad­di­tion, they pro­vide a mod­ern and safe in­te­gra­tion for de­vel­op­ers to im­ple­ment, en­abling your pro­ject to take pay­ment with­out pay­ment de­tails ever touch­ing your pro­jec­t’s in­fra­struc­ture. This means you don’t have to worry about PCI DSS; they do it all for you.

Despite them all serv­ing the same (or sim­i­lar) pur­pose, not all pay­ment gate­ways are the same. They all have vary­ing perks or ad­van­tages, and these are what you need to be con­sid­er­ing when choos­ing the right one for your pro­ject. Some key dif­fer­ences which WorkingMouse has dis­cov­ered when in­ves­ti­gat­ing pay­ment gate­ways for our clien­t’s pro­jects in­clude:

  • Project type
  • Ease of in­te­gra­tion
  • Developer API and doc­u­men­ta­tion
  • Payment fa­cil­ity Support
  • Client por­tal ca­pa­bil­i­ties
  • Mobile App Support
  • Locality

Technical Considerations

It’s im­por­tant to weigh up the tech­ni­cal con­sid­er­a­tions vs the com­mer­cial con­sid­er­a­tions when con­sid­er­ing these fac­tors while mak­ing your de­ci­sion. From the tech­ni­cal per­spec­tive, of­ten the choice ap­pears sim­ple: choose the pay­ment gate­way with the best/​eas­i­est/​quick­est de­vel­op­ment ex­pe­ri­ence. This is what some of our com­peti­tors might do to save you money now. However, it is also im­por­tant to con­sider the ex­pe­ri­ence of your users or the sup­port you can pro­vide to your users through those oth­ers perks that the other pay­ment gate­ways of­fer.

Another key fac­tor to con­sider is if your pro­ject is also in­tended for mo­bile, ei­ther as a mo­bile friendly web app, a hy­brid app, or a na­tive app. In-app pur­chases are be­com­ing far more com­mon and ac­cepted as time goes on. These can be han­dled for you by some pay­ment gate­ways, oth­er­wise that func­tion­al­ity will have to be im­ple­mented be­tween your app and the app store, in ad­di­tion to your se­lected pay­ment gate­way. It is worth not­ing that in­te­grat­ing with an app store is nowhere near as dif­fi­cult as in­te­grat­ing with a bank. This leads on to the main rea­son many opt against in-app pur­chases - com­mer­cial con­sid­er­a­tions.

Commercial Considerations

While it will likely cost you noth­ing to in­te­grate with a pay­ment gate­way, it will cost you (or your cus­tomers) a per­cent­age of a trans­ac­tion. The most ex­treme ex­am­ple of this is in-app pur­chases when con­duct­ing iOS mo­bile app de­vel­op­ment. While they are con­sid­er­ably eas­ier to in­te­grate with from a tech­ni­cal per­spec­tive (because Apple/Google tend to make it easy for their cus­tomers) they take 30% of a trans­ac­tion. For ex­am­ple, a $100 dress pur­chased through an in-app gate­way will see $70 go to the re­tailer and the other $30 go to Apple. As a re­sult, the ma­jor­ity of busi­nesses choose to in­te­grate with pay­ment gate­ways.

For the pur­pose of this ar­ti­cle we won’t dive into every pos­si­ble pay­ment gate­way. We will how­ever out­line three that we have ex­pe­ri­ence in­te­grat­ing with and the com­mer­cial con­sid­er­a­tions of each.

eWay

The pric­ing for eWay is 1.5% plus 25 cents for every trans­ac­tion. This type of hy­brid model (flat rate plus per­cent­age) is com­mon but may not be pre­ferred for those busi­nesses deal­ing in large quan­ti­ties of small trans­ac­tions. If your av­er­age trans­ac­tion value is $5 then 25 cents is 5% of rev­enue.

Stripe

Perhaps one of the most pop­u­lar pay­ment gate­ways, Stripe boasts greater fea­tures and flex­i­bil­ity than many com­peti­tors. The pric­ing struc­ture is 1.75% plus 30 cents per trans­ac­tion. Marginally more ex­pen­sive than eWay but it is worth as­sess­ing whether Stripe’s ad­vanced func­tion­al­ity will save de­vel­op­ment time.

Pin Payments and Braintree

Both Pin Payments and Braintree share the same pric­ing ap­proach as Stripe. That is, 1.75% plus 30 cents per trans­ac­tion. Be sure to con­tact a few pay­ment gate­ways. Depending on your vol­ume of cash flow there may be room to ne­go­ti­ate on the stan­dard pric­ing model.

At the time of writ­ing, WorkingMouse had re­searched a wide va­ri­ety of pay­ment gate­ways, and in­te­grated a num­ber of dif­fer­ent pay­ment gate­ways across unique pro­jects. We go through the pay­ment gate­way dis­cov­ery for every client, and pro­pose our ob­jec­tive and com­pre­hen­sive find­ings back along with our ex­pe­ri­ence with each to our clients so that they can make an in­formed de­ci­sion. This ex­pe­ri­ence is what has guided this con­tent, so that it can hope­fully also as­sist you. I want to stress a very im­por­tant point.

Don’t leave it un­til the last minute!

The ap­proval process for a pay­ment gate­way is rarely in­stant. This is es­pe­cially the case for new busi­nesses. Because there is no trad­ing his­tory, the pay­ment gate­way must con­duct an ap­proval process. Think of it this way, a bank would­n’t in­stantly ap­prove a home loan. That is why it’s im­por­tant to be­gin the ap­proval process at the start of a pro­ject, not when the de­vel­op­ment it­er­a­tion is start­ing.

Integrating with the right” pay­ment gate­way is not a one size fits all rec­om­men­da­tion. There is al­most never an ob­vi­ous choice. The best path for­ward is to draw up a list of re­quire­ments and ex­pec­ta­tions of a pay­ment gate­way for your pro­ject, then us­ing this guide as a start­ing point as you do your re­search, you will find the one which ticks all those boxes.

We rec­om­mend choos­ing Payment Gateways which have ex­pe­ri­ence be­hind them, as well as high qual­ity cus­tomer and de­vel­oper sup­port. These are the Payment Gateways that you can rely on to deal with your user in­quiries in a timely and pro­fes­sional man­ner. They also care about how ef­fec­tively you in­te­grate their ap­pli­ca­tion into your pro­ject, and are happy to as­sist your de­vel­op­ers with mak­ing the most of their in­te­gra­tion func­tion­al­ity. In our ex­pe­ri­ence these plat­forms have been those listed above (eWay, Stripe, Pin Payments and Braintree).

ABOUT THE AUTHOR

Chris Pennycuick

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