The rise of mobile devices and their penetration into our daily lives through shopping, traveling or business services is bringing a significant change into the spending habits of users. Popularity of mobile devices and shifting away from cash payments has created need for direct, real-time payments that can be made through smartphones with little effort.
The latest surveys show a substantial decline in the use of cash among American consumers. Up to 59% of people in the U.S. tend to carry less than $20 in cash in their pockets. The participants of the study also noted that they are not readily using their smartphones yet if they don't trust the payment system. At the same time, it is estimated that by 2019, payments made through mobile devices will reach $142 billion in the U.S. only, with remote payments constituting an absolute major portion of all mobile transactions.
These facts and projected statistics present an opportunity if your mobile app includes payment opportunities. You need to be sure that the payment system you select fits your app's functionality, runs smoothly and clearly answers the user needs. The Onix team has expertise in the integration of payment systems into apps.
To able to collect payments through mobile devices, merchants and payment card processors need to meet PCI compliance standards and secure a user's financial information. Obtaining PCI certification for accepting mobile payments for your payment system can be complicated and time-consuming. Instead, integrating one of the existing PCI certified payment options into your application is the most efficient way to proceed.
Here are the types of mobile payment systems:
These payment systems are most effective for in-person sales (e.g., stores, restaurants, marketplaces). A user's smartphone becomes a cash register and there is no need to install a mobile payment system for a consumer.
These systems are known as mobile wallets. Payments are conducted based on NFC (contactless and instant data exchange between devices) or "tap and go" technology.
Unlike the first two groups, platform systems are based on WAP technology (the smartphone connects to an online payment system to pay or requests card data via a website).
Fees in these systems are tied to phone bills either through SMS or in-app billing.
These systems offer their own personalized payment platforms that are built by companies and operate as store credit cards. A user downloads the application, puts money on the card to pay for their future purchases and receives a full scope of store services (tracking of coupons, gift cards, loyalty rewarding).
One of the latest projects that our iOS team has delivered is an app through which users can subscribe to watch live Mongol TV on their iOS devices on a monthly basis. As part of the project, the team integrated a payment system into the app to enable a subscription plan.
For Mongol TV app, we had three possible options to choose from: PayPal Here, Authorize.Net and Stripe:
In the case of Mongol TV app, our choice was made in favor of Stripe, because the system does not require setup, monthly service, refund or card storage fees.
1. The payment system should be easily used. It is essential to check how quickly a user can complete the payment process.
Stripe is a developer-friendly tool that provides a rich API library in a number of languages (e.g., Ruby, Python, Java, PHP) and ensures smooth and effortless integration into the application. Also, for users, the system offers well-designed checkout forms.
2. Access to mobile payment systems. Rely on the geographical location of your potential users to ensure payment opportunities.
The app is mainly focused on U.S. users, who would have no problem with accessing Stripe payments and choosing the currency. Stripe accepts major international debit or credit cards. At the same time, we found out that though the system works in Canada, Australia, currently it is not accessible in all European countries.
3. Types of payments available for or required by a business model need to be considered.
In most cases, the most convenient type option is a single payment, so a user can complete the process in just a few clicks. This is another reason why we decided to integrate Stripe - a user receives access to TV channels based on a subscription plan. Stripe mobile payment system supports recurring revenue, subscriptions, and special deals and coupons.
4. Transfer timing - the most reliable option is to use a mobile payment system that delivers money to your bank account fast.
Stripe currently takes up to two days after payment to make funds available for use.
5. Security issues and system integration.
Stripe offers proven protection. It is a certified PCI level I payment system that monitors any suspicious transactions. Card details from a browser to Stripe are transferred safely.
A mobile payment system should be integrated based on business needs, so if a user has only several payment choices, it is wise to use a system that directly responds to the actions required of a user.
The app we developed does not sell any variety of goods, but only requests one monthly payment to be made in a timely manner. For this, Stripe offers an easy solution with its "Pay now" button that allows completing payment in one click.
If you plan to create your own app, our strong team of mobile developers will readily help you with technology and other recommendations that will deliver an excellent product.