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How to choose payment gateway for your eCommerce app



How to choose payment gateway for your eCommerce app

If you are new to the ecommerce app world, you might be well aware of the series of crucial decisions you have to take while working on your plans. This is the time when you realize that it isn’t just choosing the platform which is difficult, but deciding the payment gateway is equally difficult.

There are numerous factors that one has to look after while finalizing the gateway. However, before we talk on that, let us first try to understand the need for knowing this.


Why a Payment gateway matter?

A payment gateway plays a vital role in a successful e-commerce app. It is a part of technology which connects your app with payment networks and let you receive payments through online selling. If there’s any loophole in this can negatively influence your entire business.

While some payment gateways require your merchant account, some might not. The latter is in trend these days. This is to provide ease and faster receipt of payments to merchants, as the merchant account often ends up taking a week to start accepting payments.


Types of payment gateways

Hosted: These payment gateways are often preferred by people. The reason behind is that you are nowhere liable for any security breach. The host network or the offsite service provider solely look after the security issues and PCI compliances. However, these gateways often fail to satisfy users due to their complicated and slow User interfaces. This can leave a negative impact on your conversion rates. The most important, they are not fit for mobile apps.

Integrated/non-hosted: Here you are connected through an API. This is the best aspect of them, as the user remains on your page and doesn’t get redirected to another page. However, if we talk about security here, the slightest error can invite an overall audit of your e-commerce store app.


How to choose which payment gateway is good for you?

Here are some questions that you need to ask yourself before finalizing a payment gateway for your e-commerce app:

  1. Does it support your e-commerce platform?

First, check the platform that you are using for your e-commerce app. It works either way. There are times when appreneurs chose the platform which is supported by their preferred gateway or vice-versa. If you fall into the latter category, before finalizing and getting into a contract with your gateway, do research about the different platforms and the gateways they support.


  1. Do you want a gateway with a merchant account or a service provider that gives everything?

This one links with the above mentioned two types of gateways. This covers a vast region. You can have your own priorities. If you are fine to look at the security issues and prefer to deliver a better experience to users, integrated gateways shall be your choice. However, if not, prefer having a hosted network.


  1. Where you want your customers to enter payment details?

Technically speaking, you have three options for this:

A payment form on your app and details being posted on your site.

an iFrame or Redirecting to the hosted payment page

Give yourself some time before you finalize this. Each of them has its own set of pros and cons, you need to thoroughly go through them and check which one matches your requirement.


  1. Do you wish to include PayPal?

Believe me, there are many other better options than PayPal. People often find their fee structure complex and there’s no way you’ll receive perks on higher transactions. So, if you do not have any firm reason behind choosing PayPal, you have an entire list to choose from.


  1. Gateway Fees and contract duration?

The fees charged can include fixed per-transaction fees, monthly fees, variable fees based on percentage, and extra fees, international transactions, etc. apart from this there are gateways who tie the users in a long term contract of 2-3 years. Before finalizing your payment gateway, do crosscheck these points.


  1. Is payment gateway supporting the methods that are used by your target audience?

User payment preferences change slightly with the age group they belong to. This also includes geographical location, occupation, and a few other factors. You need to find who your target audience is and do a little research on the payment methods they prefer. Once you are done with this, check whether if your preferred payment gateway supports the particular method of payment or not. If it doesn’t, you need to change your preference for a payment gateway.



Selecting a reliable payment gateway is very important for the growth of your e-commerce app store. You need to understand that people access mobility services to save their time and efforts without compromising their security. Ask yourself above mentioned questions, and if you have firm answers to them matching with a particular gateway, go ahead with it.

Nikunj Gundaniya, Product manager, one of the leading digital wallet solution, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.