Types of Payment Gateway Integrations: How to Choose the Right One?

The inclusion of a payment gateway in your app enables users to make purchases and payments securely and conveniently within your app. In the era of one-click checkout customers, the presence of a well-connected payment gateway is an essential tool for any app selling goods or services. Nevertheless, you have a number of other payment gateway options, therefore, how do you choose the right one?

In this complete guide, we will cover the main types of payment gateway integrations, the key factors to consider when choosing a payment gateway integration services provider, and specific recommendations for different types of apps.

A payment gateway is a bridge that connects merchants and payment processors, and that is, it is an encrypter of sensitive payment information. It is the technology that connects the bank of the customer and the merchant and securely transfers the payment and order details.

Here are the three primary ways payment gateways can integrate with your app:

 

Hosted Payment Pages

Hosted payment pages are a system where when the user starts the checkout process in your app, they are redirected to the payment provider’s secure servers to input payment details through the provider’s checkout form. This relieves the provider from the PCI compliance demands.

When the transaction is successfully done, the user goes back to the app. The hosted payment pages are the easiest to integrate, and the least effort is required at the beginning. Yet, you give up the management of the checkout process.

Example providers: Stripe, Braintree, Authorize.Net

 

Native SDK Integration

Native SDK (software development kit) integration embeds the payment provider’s checkout form directly within your app for a seamless user experience. Although initial integration takes more effort, you get greater customization and control.

Sensitive card data still goes directly to the provider’s servers for processing. You handle the entire checkout process under your brand without redirecting users outside your app.

Example providers: Braintree v.zero SDK, Stripe Mobile SDK

 

Direct API Integration

Direct API integration sends payment details directly from your app to the payment gateway via API for processing. This offers the most customization but also requires building your compliant checkout form.

You take on all the complexity and responsibility of PCI compliance. Significant development resources are required to integrate payments securely and maintain ongoing compliance.

Example providers: Stripe, Braintree, Authorize.Net

With a variety of integration methods and providers to evaluate, here are the most important factors to consider when selecting a payment gateway for your app:

 

1. Supported Platforms and Devices

The payment gateway should be capable of working on all platforms and devices that your app runs on – be it iOS, Android, web, etc. Make sure that the provider of choice is able to work on all those platforms.

 

2. Local Payment Methods

If selling abroad, make certain that the gateway accommodates popular regional payment methods in your target countries. Examples of these options are Alipay, PayPal, Giropay, iDEAL, and POLi, which are very much needed in some markets.

 

3. Pricing Model

In the course of transaction fees, payment processing rates and other charges can seriously affect the expenses. Explore pricing plans to estimate your expenditure for the intended transaction volume.

Common pricing models:

• Pay as you go (per transaction fee plus processing rate)
• Monthly/annual flat fee based on volume
• Tiered pricing based on volume

 

4. Integration Difficulty and Time

Assess the development effort, tools, and timeframe required for integrating the payment gateway. Some providers offer a quicker turnaround but less control. Others provide greater customization at the cost of more complex implementations.

 

5. Compliance and Security

Any provider should offer high security and comply with industry standards like PCI DSS. For direct integrations where your app handles card data, achieving and maintaining PCI compliance is crucial but demanding.

 

6. Localization and Global Support

Selling globally requires accepting local payment types, currencies, languages, and compliance requirements across different countries. Confirm the provider can scale globally with your app.

 

7. Developer Resources and Support

Good documentation, SDKs, libraries, and technical support alleviate integration challenges. Evaluate each provider’s dev resources and additional support channels like forums, chat, etc.

 

8. Branding and Customization

Assess customization options for the checkout pages and forms—apply your branding, color schemes, fonts, etc. More configurable gateways create cohesive user experiences.

 

9. Reporting and Analytics

Robust reporting and dashboards with key metrics, insights, and tracking of payments, disputes, refunds, and more simplify reconciliation and financial planning.

With those factors in mind, ideal payment gateway solutions also depend heavily on your app type and specific needs.

 

eCommerce Apps

For native eCommerce apps, flexible SDK integrations like Braintree v.zero SDK or Stripe Mobile SDK  enable customized branded checkout without leaving your app. This offers device-specific optimization and complete user experience control.

Both providers have excellent support for global payment methods. Braintree provides superior chargeback management and fraud protection, while Stripe offers a simple and scalable pricing model.

 

Marketplace and On-Demand Service Apps

Marketplaces and on-demand platforms with split payments/payouts to third parties have more complex needs that are better served by Braintree Marketplace or Stripe Connect.

These facilitate easy payments to multiple connected accounts in one transaction via ACH or local payment types, greatly simplifying the split payment distribution.

 

Subscription and Membership Apps

For apps selling recurring subscriptions, Stripe Billing provides robust functionalities for managing subscriptions, invoices, payment methods, and metered billing.

Braintree Recurring Billing also delivers strong subscription management and billing automation synergies with other Braintree services.

 

Gaming Apps

For in-app purchases and virtual goods, Google Play Billing and Apple StoreKit offer deep platform integration, global availability, and higher conversion rates.

App store billing simplifies compliance and provides powerful subscription tools. However, payout timing and platform fees should be factored in.

• Hosted payment pages are the fastest to integrate, while native SDKs allow to brand checkouts within your app. The most complex is the direct API integrations but the most powerful one.
• Take into account the type of platforms, payment methods, pricing, regulations, customization, and global capabilities of the providers that you’re thinking about.
• Leading solutions such as Braintree and Stripe offer the most flexible, feature-rich, fast and reliable support.
• However, the ultimate payment gateway selection is highly dependent on the nature of the application (for example, subscriptions, marketplaces, and in-app purchases) as well as its particular use cases.

The selection of the right payment gateway ensures customers are not faced with any checkout friction, and your app gets the monetization infrastructure to support business development. This guide describes the top providers, the methods of integration, the decision factors, and the recommendations for your payment strategy.