You may not realize it, but the payment gateway has already been an inseparable part of our daily life. Each time you shop online or pay a bill via your smartphone, the payment gateway is in charge. Even people pay offline with a Point of Sale (POS) system.
According to a recent survey, over 52% of US consumers use debit cards, and over 55% use credit cards for online transactions. US consumers are 40% more likely to use a credit card, even for offline transactions. All these offline and online transactions are facilitated through the payment gateways.
Given the continuously growing volume of transactions, it is estimated that the payment gateway market will steadily expand, valued from $17.2 billion in 2019 to reach $42.9 billion by 2025. Therefore, integrating a payment gateway into websites and apps has become an indispensable need for every business, irrespective of the niche and industry. Thankfully, there are finance software development companies to create custom gateway solutions for all types of businesses.
Why Should You Have a Payment Gateway Solution for Your Business?
In today’s digital age, every business in retail, eCommerce, and other industries requires payment gateways at some point to ensure smooth transactions. And to create this gateway, businesses need to connect with a finance software development company. Let’s have a look at the companies that should consider building a payment gateway system in their websites and apps:
- Big enterprises looking to complete all aspects of their business processes
- Retail and eCommerce companies aiming to upgrade their payment systems
- IT companies wishing to expand their business models
- Banks aiming to enhance their front-end software
- Existing payment providers that want to upgrade their existing payment processing system
- Billing companies willing to replace or advance their legacy software
If you fall under any of these categories, you must consider developing your own custom gateway solution with the standard features:
Essential Features of Payment Gateway
Custom payment gateway development is always challenging with intriguing features integration. Therefore, before beginning to build one for your business, consider your solution has the following features.
1. User Experience
Your gateway solution should have an intuitive and easy-to-use interface for consumers. Furthermore, don’t miss to label all the features to ensure smooth transactions without hassle.
2. Multi-Currency Support
To ensure the global expansion of your business, your gateway should support multi currencies like USD, EUR, INR, and GBP. If possible, add cryptocurrencies as well.
3. Multi-Payment Methods
Different users prefer different transaction methods. Therefore, to ensure the ease of usability for customers, make sure your gateway supports multi-payment methods like internet banking, cash on delivery, credit cards, debit cards, UPI, PayPal, and direct payment links.
4. Multi-Language Option
Integration of multi-language is also a demanding feature of gateway solutions. It allows users to do error-free transactions in their familiar language.
5. Secure Authentication
We live in an age where cyber theft and data forgery are at their peak. Therefore, you must add two-factor identification and other forms of authentication to your gateway in order to protect user data.
6. Fraud Detection and Prevention
While a reliable finance software development company consistently implements KYC practices and advanced verification systems to detect fraud, you still need to double-check this factor while building an online payment system. It will help you authenticate users’ identities when they conduct transactions.
7. Compliance Standards
Your payment gateway solution must meet GDPR (General Data Protection Regulation) and PCI DSS (Payment Card Industry Data Security Standard) compliance. If not, your gateway will not get the official license to be regulated in your local nation and abroad.
Payment Gateway Development Process
Developing a custom payment gateway system requires foolproof planning and execution. Let’s check out the essential steps that go into the payment gateway development process.
1. Ideation
The payment gateway development process starts with carefully analyzing the target audience. It will help you gather the required information and highlight existing opportunities. After doing extensive market research, it is time to come up with an intriguing idea to build the product.
2. Designing
At this stage, a team of UI/UX and graphic designers work on your coherent idea and design your product’s interface with the brand identity. Designers also help you get a prototype of the concept.
3. Development
It is the most critical stage of your payment gateway development process where the core infrastructure of your solution takes shape. The team of proficient developers codes the designed product and makes it ready to release in the market.
4. Quality Testing
Unexpected bugs and errors can crash your product and cost you a lot of money even before it gets off the ground. To prevent it, give your quality analysts the leeway to test the product and make sure it is perfect to be released.
5. Optimization
If QA finds any flaws during the testing process, it is time to address all those loopholes and make the payment gateway flawless.
6. Product Release
Making sure everything is in perfect shape and free from errors, here comes the final step to release the program for end-users.
7. Support and Maintenance
The gateway development process doesn’t end at the product release. You still need to provide support and post-development maintenance to the end users. Also, continue working on updates to keep the system running with minimal downtime.
Payment Gateway Development Cost
Knowing the features and steps involved in payment gateway development, you might wonder how much it costs to build one for your business. Typically, a payment gateway solution’s cost varies depending on the product’s complexity. Advanced solutions often require considerable investment, large teams of efficient professionals, a lot of time, and a high level of patience. Hence, you should know the tech stack, needed features, team composition, and deadline beforehand. The more features the payment gateway has, the higher it will cost you. On average, a custom payment gateway development solution costs you over $200,000.
Final Thought
Payment gateway systems have been gaining enormous popularity since 2019 when the pandemic hit us globally, and today it has been an inseparable part of our digital lifestyle. Hence, it is high time for businesses to get into the FinTech game and develop a custom payment gateway. Whether you are an eCommerce company or an IT firm willing to start payment solutions or upgrade the existing one, it is worth the investment.
However, payment gateway development is a complex process involving many security, technical, usability, and regulatory compliances. Hence, to go safe, it is wise to hire a finance software development company that specializes in developing custom payment gateway solutions from scratch, upgrading a legacy system, and providing other tech solutions.
References:
https://spdload.com/blog/p2p-payment-app-development/
https://binariks.com/blog/payment-gateway-development-the-ultimate-guide/
https://akurateco.com/blog/how-much-does-it-cost-to-develop-own-payment-gateway
https://www.linkedin.com/pulse/payment-gateway-development-process-features-revenue-business-
https://www.scnsoft.com/financial-management/payment-gateway-development
https://anywhere.epam.com/business/how-to-build-a-payment-system
https://yourstory.com/mystory/cost-and-features-to-develop-a-payment-gateway
