Integration of In-app purchase systems in mobile applications

6 min read

Today, more and more people do not spend time on going to shopping malls and instead make purchases in the Internet. It is a convenient privilege of the modern world. Thanks to online shops, you can buy anything. It also means that every entrepreneur will want to increase sales by integrating In-App Purchase systems into their online store.

What is an In-App Purchase system? This is the service provider that authorizes the payment. Usually it is an application for online stores, which is synchronized with the Bank, so that buyers can pay for goods directly from home. Anyone can take advantage of this type of service, including online stores and other service providers that sell something to users. These include non-profit organizations that collect donations online. There are many different payment systems including Stripe, PayPal, Authorize.net, Google Checkout and direct MasterCard/Visa payments. All of them have their advantages and disadvantages, in addition, each charges a different Commission.

There are many different payment systems including Stripe, PayPal, Authorize.net, Google Checkout and direct MasterCard/Visa payments

Today, online payments are becoming more and more popular. Even older people use online banking to pay for services online. According to the portal Statista, the volume of online payments is growing rapidly.

By 2022, the total number of online transfers is expected to reach $ 5,411,354. This only confirms the fact that your site needs the integration of payment modules for convenient user experience of your customers.

Let's look at a few questions before you seriously think about the integration of the payment module in the online store. Understanding how it works will help you choose the best payment system option for your business. This is an important step, because it is the usability that affects whether your customers will use it.

General scheme of payment systems:

  • The buyer places an order for goods or services on the website/app of the online store. The order with a unique number is formed.

  • Information about the order is transferred to the payment service, and the buyer is redirected to a special website of the payment system.

  • On the website of the payment system, the buyer can choose a payment method (payment card, electronic money), enter the data of the payment card.

  • The payment service checks the entered data and, if everything is correct, conducts a payment transaction. This ensures the necessary level of security of transactions.

  • In case of successful or unsuccessful transaction, the payment system returns the buyer to the website/app of the online store, and the server of the online store reports the results of the operation.

  • The Manager of the online store can view, accept and cancel the credited payments through a special interface of the payment system.

When connecting payment systems to the online store, two approaches are used:

  • independent setup of connection to each payment system;

  • connection via payment aggregators.

The cost of configuring the software modules of the online store to connect to different payment systems may slightly vary, since they have the same general principles. In particular, the differences can be significant.

Independent connection setup is justified for large volumes of transactions in the online store if the fee to the aggregator exceeds the cost of developing integration mechanisms with each payment system.

In general, it is advisable to connect online payment through payment aggregators. In addition, the cost of transactions for some types of payments that the aggregator that a particular payment system are the same, as aggregators enjoy preferential conditions when working with payment systems.

While choosing an In-app purchase system, pay attention to the universality – acceptance of payment by payment cards and electronic money.

Avoid payment systems if they have one of the following features:

  • unpopularity;

  • problems when contacting technical support;

  • regional restrictions (for example, they do not work in your country or do not have adequate mechanisms for a legislation of a certain country to support business operations);

  • high fees and commissions.

Summary

  • Many large payment systems are not suitable for business in the former USSR. You can replenish your account and make purchases on foreign sites, but you will not receive payments from buyers.

  • Of these systems, PayPal, Paymentwall, Stripe and Mycommerce are suitable for companies registered in the USA and Europe. Russians and Kazakhs can use PayPal and Paymentwall, and Belarusian companies can only use the last of these systems. Ukrainians can use WayForPay, LiqPay and Paymentwall (except for electronic money, which is prohibited in the country). If you are an entrepreneur from Ukraine, Russia or the EU, the FONDY system will allow you to accept payments from around the world.

  • In most systems, one or two tariffs with a fixed Commission and one — providing more opportunities for customization. In the second case, the Commission is discussed separately.

  • Almost all large systems comply with the international PCI-DSS security standard and use 3-D Secure technology. Many additionally have their own fraud detection tools that use machine learning algorithms.

  • The downside of a serious approach to security — account can be blocked at any time at the slightest suspicion. To minimize the risks of chargebacks, the system may charge a fee.

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