Top 6 Considerations for Your Mobile App Payment Gateway

Mobile app developers joining us today appreciate that there are many mobile app payment gateways to choose from, but might like to know what to consider when choosing one. Let’s walk through it together.

So, you’re developing a mobile app because you want to earn a piece of the sweet, big mobile app pie on the menu today and tomorrow. Consumers can’t get enough of apps these days, and earnings reports reflect it.

How big is the pie? Forrester projects mobile payment transactions — in the U.S. alone — to account for $282.0 billion by 2021. They also expect mobile app sales to grow by a compound growth rate (CAGR) of 20.3% between now and then. Yum, that pie sounds delicious.

While the monthly revenues app developers expect to earn varies by what they sell and the platforms chosen, the future is bright.

Of course, without a mobile app payment gateway built in, the monthly earnings from an app fall abruptly to a Big Fat $ZERO.

Mobile app developers joining us today appreciate that there are many mobile app payment gateways to choose from, but might like to know what to consider when choosing one. Let’s walk through it together.


First things first. Let’s assume the following:

  • The mobile app under development is a custom job.
  • There’s no “one size fits all” mobile app payment gateway solution.
  • You want to find a mobile app payment gateway that fits your business model, not adjust your model to fit the gateway.
  • A gateway allows users to buy your products or services, providing a safe, secure way to give you money via payment cards, mobile wallets, and perhaps other choices.

Let’s look at the six most important categories of features to consider when choosing the mobile app payment gateway that suits your needs.

Business Model Considerations

Defining requirements should be a no-brainer for every app developer. Otherwise, the “shiny object syndrome” hits and the scope of your app grows quickly — not a winning scenario. Think about your business model and target market. Use this list to tickle your brain:

  • Countries and Currencies you need to support.
  • Payment Types. Which brands of credit and debit cards? What types of mobile wallets does your target market want? What about ACH (checks) via smartphone camera and one-touch payment capability?
  • Payment Models needed in your app: one-time purchase, subscription services, and/or large scale payments for payroll and invoicing.
  • Level of customization: Fully-hosted ecommerce solution with customizable look and feel throughout vs. Checkout screens customizable to support unique branding.
  • Do you need a fully managed store front — a simple mobile app payment gateway to integrate into a custom app — or something in between?
Technology Considerations

Many of your technology choices may have already been made, and some may require research on pros and cons and user opinions.

  • Support Apple iOS, Google Android, and/or Windows Phone.
  • Ease of Integration, Ease of Use (points to API and SDK strength).
  • Easily integrate with business software packages, and/or social media platforms.
  • Full-stack solution, or gateway-only?
  • Scalable solutions for different size businesses.
  • Shopping cart plug-ins, custom forms.
Fraud Prevention Security Features

This may be THE MOST IMPORTANT consideration for your choice of mobile app payment gateway. eCommerce and mobile fraud prevention are top-of-mind for banks, credit card companies, payments processors and merchants of all types. Because retail merchants continue to experience fraud at alarmingly high — and growing — rates.

  • PCI-DSS Compliance, required by the card brands for any merchant transmitting or storing payment card data. Don’t neglect this requirement as you look at various gateways. Failure to maintain compliance can result in large fines from major card brands.
  • Support for fraud protection features like Address Verification and Card Code Verification (AVS/CVV), data encryption, tokenization, and other security protocols that allow you to monitor transactions in real-time.

Don’t shirk this responsibility as potential customers care a great deal about data security, especially the Millennial generation (a key target market).

Level of Customer Support

This is often the least appreciated aspect of the payment aggregator business model, along with funding timeframes and account stability. Consider what fits your personality, including days and hours available.

  • Email only support.
  • Internet Relay Chat (IRC) site to converse with technical experts.
  • Live Customer Support, with published phone numbers.
  • Integration support.
Price Point/Charging Model

Pricing models for mobile app payment gateways vary. Consider your growth plans as well as start-up processing fees, because what sounds like a great deal initially can add up very quickly and reduce your share of the mobile app revenue pie.

  • Monthly Fees are common, and range from $14.95 to $179.95 per month for the mobile app payment gateways reviewed.
  • Other models use standard pricing tiers based on transaction volumes. Some gateway providers offer customized pricing for each customer.
  • Extra fees may include set-up, product integration support, live support, and other add-on premium features.
  • Payment aggregators typically offer free accounts with fixed, pay-as-you-go, per-transaction price structures in the form of X% of transaction + $0.YY per transaction. Pricing varies from 2.75% – 3.5% of transaction value plus $0.15 or more per transaction.
  • Different types of accounts with varied features (some standard, some extra) may be part of the pricing model. For example, PayPal’s “Enhanced” and “Premium” support cost $150 and $459 per month.
  • Fees for international transactions may be higher than domestic fees.
Contractual Terms and Terms of Service

Carefully review both before signing anything. If you find the they’re too legalistic, seek a legal review. Items to look for include:

  • Is it a fixed-term contract? If so, is there an early-termination penalty?
  • If not, can you cancel your arrangement at any time without penalty?
  • What add-on fees may occur (like chargeback fees)?
  • Is there a volume limit, or a large-transaction amount limit?
  • Who owns your customer data? Can you port data easily if you decide to change gateways?
  • By signing the contract, are you also agreeing to specific Terms of Service? Can you live with them?

When you need an eCommerce payment solution that both saves your money and gives you peace of mind, look no further than PAYARC.

PAYARC’s mobile SDK makes it easy to integrate mobile payment solutions into your app. Our PCI compliant web based payment gateway allows you to monitor transactions in real time.

And our industry leading payment processing solution gives you all the tools you need to start accepting payments while lowering your risk to fraud and giving you some of the lowest rates in the industry.

PAYARC wants to act as your payments advisor and consultant, not only your processor. Because you have a business to run…Our business is to help you run it better. Why not start processing with PAYARC today?

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