How to Choose and Integrate the Best Payment Gateway for Android App

Almost everyone today has a smartphone. To stay relevant, businesses should leverage this behavioural trend. Statista estimated that worldwide mobile app purchases reached $149.9bn in 2022. This year, m-commerce is projected to amount to almost half - 43.4% - of total retail sales, according to eMarketer.

Android users take the majority share. StatCounter estimated that Android takes up 69.74% of all mobile operating systems as of October 2023. Therefore, having an Android app with an efficient payment gateway is essential to take advantage of mobile revenues.

Here, we take a look at Android payment gateways, how to choose the best provider and complete Android app payment gateway integration.

What is a Payment Gateway for Android Apps?

A payment gateway is an important technology for facilitating payments. It allows businesses to process transactions. Think of a card machine in an offline store - a payment gateway implementation in an Android app does precisely that, but in its mobile variation. It serves as a middleman, transmitting payment data between customers, merchants, payment processors or financial institutions.

Key Factors For Choosing Payment Gateway

The quest for a perfect payment gateway for an Android app may seem overwhelming at first. The market is practically saturated with different providers. Below are the key factors to consider when starting your research.

Unique Business Needs

The intricacies of your business will always come first. For example, would your Android app require any special features? Do you offer one-off in-app purchases or a subscription cycle? In the case of the former, you’ll need the recurring payments feature. Think about your unique business needs before starting your search. Note that some payment processors provide a payment gateway as part of their package, combined with a merchant account and other functions.

Customers

Your clients and their unique needs are of utmost importance, too. Have you conducted sufficient market research to find out who your clients are, where they’re from, and what are their preferred payment methods? For example, for global clientele, your Android app would need a payment gateway that can operate worldwide. In terms of payment methods, Android app users are likely to need GooglePay. Credit and debit cards are essential, as well as other digital wallets such as PayPal.

Security

The payment gateway you choose for your Android app will be handling your clients’ financial information. This means you have to make sure that your clients’ data is in safe hands. Ensuring that the payment gateway follows industry-standard security protocols is crucial. The Payment Card Industry Data Security Standard (PCI DSS) is what you are looking for, so filter out providers that are not PCI DSS-compliant.

Pricing

When choosing a payment gateway, you may notice that providers charge different amounts. Watch out for the payment structure, transparency in transaction fees, setup and cancellation charges, chargeback and monthly fees. Establish your budget prior to the research, and thoroughly evaluate the fees to identify a provider that meets your criteria.

UX Design

Opt for intuitive and user-friendly design to enhance the experience of your clients. A bad UX design can cost revenues and damage your brand. You can trial the gateway by requesting a demo version or documentation outlining the payment process step-by-step.

How to Choose a Payment Gateway for Android App

1. Define your Business Needs and Budget

Determine your desired features in a payment gateway, whether you require recurring payment or integration. You should also decide your budget at this stage.

2. Research Different Providers

Compare different payment gateway providers, paying attention to the various features they offer as well as customer reviews and testimonials. Filter down to only DCC-compliant providers.

3. Review Fees & Pricing

Evaluate the fee structure and pricing of the providers, making sure they fit into your budget. Look out for hidden fees. The best providers will demonstrate transparency in pricing.

4. Trial the service

When you have finalised a list of providers that meet your business needs, test their services. Most payment companies will offer you a trial period without the payment commitment. This is a very important step before integrating payment gateway in your Android app.

How to Integrate Payment Gateway in Android

Sep up a Merchant Account

The merchant account would typically be offered by your payment processor. As mentioned before, some payment processors provide payment gateways too. This is a business bank account that allows you to accept payments and pay bills.

Create an Account for Payment Gateway

When you’ve chosen the right payment gateway, it’s time to set up an account. As mentioned before, it may be more convenient if your payment processor and gateway are provided by the same company. After setting up, you’ll be able to connect your payment gateway to the merchant account.

Obtain API credentials

Create the Application Programming Interface (API) via your payment gateway provider. This step is essential to establish communication between your app and the gateway.

Configure the Payment Gateway

Configuration will depend on your provider and the features they offer. For example, your Android payment gateway integration may require enabling recurring payments or selecting specific payment methods that you want to accept.

Integrate the Payment Gateway

At this stage, your provider would typically send you whatever you need for payment gateway integration in Android. This will typically include code snippets and documentation. Make sure to test, and do not hesitate to consult with your provider.