Everywhere across the globe, people use mobile phones and utilize phone apps for every field. Thus, many individuals use an extensive range of apps for various purposes in their day-to-day lives.
The apps have revolutionized every aspect of today’s life, from entertainment to learning.
Many businesses have switched to better strategies to broaden their customer base. With revolutionary mobile phone applications and the expansion of the e-commerce business comes the challenge of collecting online payments.
This is where in-app purchasing and payment gateways play a crucial role. Let us learn more about these two methods in detail.
Exploring Payment Preferences for E-Commerce
When you download an application, you’ll notice that they include in-app purchases. Even if you’re downloading a free app, it will have in-app purchases that let you access more functionalities and content. Thus, it is similar to a paid subscription.
For example, when you download a gaming app, it will provide you with free access.
However, when you start playing the game, you’ll find that you can pay for additional functions such as changing your character’s clothing having exceptional in-game powers and capabilities.
This type of payment model creates business profits for game developers and companies.
In addition, while the accessible version of the application is free for every user, the in-app purchase payment model helps generate profit from loyal consumers.
Various companies such as Apple and Google provide users with in-app purchasing platforms. However, many other applications feature external payment gateways that users can access via third-party service providers such as PayPal and Clover.
You can read below to learn more about how the in-app purchases and an external payment gateway work.
In-App Purchase Methodology
Various mobile applications require an in-app purchase payment module. This is a built-in function for developers to control.
This trouble-free payment method is easy to implement as it safely connects you to a user account. However, Google and Apple charge users a hefty amount for this.
But it offers the app development professionals more options that help them enable various marketing tactics.
Such an approach helps boost sales and generate revenue. Moreover, if businesses accurately use this, it is a great way to facilitate consumers resulting in massive business reimbursement.
However, developing an in-app purchase model requires more time and effort from expert developers. So it is a complex process that requires technical support. In addition, developers must stay in touch with the users for maximum user satisfaction.
So the in-app purchase isn’t a prerequisite in every case. However, this is why you must consider utilizing an external payment gateway.
External Payment Gateways
An external payment gateway uses strong security protocols for safer and encrypted data transactions from your app to the various payment processors such as a bank or some other type of financial institution.
This way, an external payment gateway provides the development professionals and a company with significant benefits to prevent data breaches.
Furthermore, the facilitation of an external payment gateway also requires less labor. Therefore, it has many advantages in terms of time and costs.
In-App Purchases vs. External Payment Gateway
Is incorporating an in-app purchase methodology better, or should you opt for an external payment gateway? This solely depends on your business and the type of application you run.
For example, in-app purchase is a primary revenue driver for game designing companies and applications. If your business offers limited features to your consumers, you should opt for in-app purchases to boost sales and generate stable revenue.
However, if you’re handling physical products, services, and sales through your app, you should look into an external payment gateway as it will help process and collect payments from your customers.
The in-app purchase works best for consumers making purchases within the mobile application without being redirected to a third-party payment page. This is why it is suitable for gaming applications.
But when customers have to make payments to a merchant account, an external payment gateway works best as it acts as an interface between the merchant’s website and the acquiring bank.
Why Choose Oceanpayment as an External Payment Gateway?
Before you choose a payment platform for your business, you must ensure that it supports a wide variety of alternative payment methods to help expand your business globally. Oceanpayment is one such ecommerce payment platform that simplifies the process of card payments by offering up to 500 alternate payment methods.
This global payment provider is PCI Level 1 certificated. It offers alternate payment methods in more than 200 regions, covering Mastercard, Visa, American Express, UnionPay, Discover, and more.
Moreover, once your business expands, your business needs will also increase. So before growing your business, you should consult the best payment gateway service with quicker payment processing.
You require an external payment gateway that offers your customers card processing, alternative payment methods, and an open-source shopping cart. Oceanpayment is an all-in-one solution for collecting revenue.
It also offers a myriad of customized payment solutions for your business. For example, if your international customers use something other than MasterCard, it would make them abandon their cart items as your business would fail to offer alternative payment methods.
However, if you use Oceanpayment, this will not be a problem because your business can offer card payments and alternative payment methods to your customers. Oceanpayment also offers the best subscription payment services. All you have to do is contact Oceanpayment by calling or getting in touch with them through their contact form.
What is the most suitable payment method? The key takeaway is that using in-app purchases is time-consuming and costly. It also requires a deep understanding of correct utilization.
In contrast, an external payment gateway provides you with more advantages in terms of development costs and time. In addition, although it has low conversion rates, it helps keep your data safe.
Since customers provide businesses with credit card information, it is vital to opt for the safest measures. This is where Oceanpayment will help you with safe and reliable payment collection methods.