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Payment Gateway Integration means adding a third-party payment service to a website or application so it can handle financial transactions securely. It helps move funds from customers to merchants while protecting payment data.

Payment gateways act as secure middlemen for online transactions. They help users pay easily, help merchants receive payments safely, and support multiple payment methods. A good integration improves checkout quality and builds user trust.

Hosted Gateway
A hosted payment gateway sends customers to a third-party payment page to complete the transaction. After payment, the customer returns to the merchant website.

The service provider handles most of the payment process.

PCI compliance is lighter and integration is simpler.

Most vendors provide clear integration guides.

Limited control over the hosted gateway.

Some users may hesitate when they are moved to another payment page.

Redirecting customers may impact conversion rates and branding.

Integration: Usually done by following the vendor guide and using its API.
Best Fit for: Small or local businesses that are comfortable using an external payment page.

Direct Post Method
The Direct Post method is a technique where sensitive payment data is sent directly from a customer’s browser to the payment processor’s servers without passing through the merchant’s server. It enables customers to make purchases without leaving the merchant's website. PCI compliance is not required, as transaction data is immediately posted to the payment gateway upon the customer clicking the "purchase" button.

Retains customization options and branding capabilities.

No PCI DSS compliance needed.

All necessary actions performed on a single page.

Limited security compared to integrated payment gateways.

Integration: Involves setting up an API connection between the shopping cart and the payment gateway.
Best Fit for: Businesses of all sizes seeking a secure, on-site payment experience.

Non-Hosted (Integrated) Method
An integrated payment gateway involves no third-party intermediaries during the payment checkout stage. It refers to the approach where customers stay on the merchant’s website throughout the entire payment process, including entering their payment details. Companies opting for integrated gateways attain PCI DSS compliance, taking responsibility for storing, securing and verifying each transaction.

Full control over transactions on the website.

Customizable payment system tailored to business needs (flexibility in customization).

Potential source of revenue for merchants becoming payment service providers.

Requires PCI compliance, with associated infrastructure and expenses.

Integration complexities for adding custom functionality.

Integration: Non-hosted payment gateways are integrated via APIs to the server, necessitating an engineering team for implementation.
Best Fit for: Medium and large businesses emphasizing branding and user experience.

Customer
Customer enters payment details. Data is encrypted and sent to the merchant server over SSL.

Payment Gateway
Merchant sends transaction data to the gateway over SSL. The gateway tokenizes it.

Payment Processor
Processor links the merchant account to the gateway and forwards data to the card network.

Card Network
Card networks pass the request to the issuer bank.

Issuer Bank
Issuer approves or declines and returns a status code.

Payment Gateway
Gateway receives the status and sends it back to the website.

Customer and Bank
Customer sees the status. The merchant receives funds in a few days.

Assess Your Needs
List required features, compliance needs and risks.

Project Planning
Set budget, timeline, KPIs and delivery goals.

Design Payment Gateway Integration
Choose the gateway type and define the payment flow and architecture.

Choose the Right Tech Stack
Pick tools and frameworks that fit your gateway design and ensure smooth integration.

Implementation and Testing
Develop the custom payment gateway according to your design and plans. Create features and elements that define your payment system. Conduct thorough testing to identify and rectify any errors or bugs, ensuring a smooth and reliable payment gateway integration.

Support and Maintenance
Collaborate with service providers like EverExpanse to receive ongoing support and maintenance. Benefit from their expertise to address evolving needs and demands, ensuring your payment gateway remains cutting-edge and effective. By following these steps, you can successfully integrate a payment gateway into your mobile application, providing users with a secure and seamless online transaction experience.