Payments in Mobile Apps
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The document outlines various payment methods in mobile apps, detailing in-app payments via Apple Pay and Google Pay, alongside third-party payment gateways like Stripe and Braintree. It discusses the classification of in-app payments, associated fees, and testing procedures, while also emphasizing the rules regarding bypassing in-app purchases. Additionally, it describes payment integration, testing processes, and specific guidelines for implementing payment solutions effectively.
Payments in Mobile Apps
- 2. Contents Types of payments Apple Pay Google Pay Stripe Braintree 02
- 3. Types of Payments 03 In‑App Payment Gateway For selling digital content. For selling physical goods, services, charity and peer-to-peer transactions
- 4. In-App Payments 04 ● They’re built into Android and iOS on a system level and let users manage subscriptions and payment methods within the OS. ● They must be used for selling digital content. ● Apple and Google charge a 15-30% fee. ● Apps on app stores are marked as ‘In-App Purchases’ and indicate the range of prices.
- 5. Classification of In-App Payments 05 Apple: 1. Consumable. For repeated purchases. 2. Non‑Consumable. For a one-time purchase by one user. 3. Auto‑Renewable Subscriptions. For standard subscriptions. 4. Non‑Renewing Subscriptions. Subscriptions for a specific period with manual renewal. Google: 1. One-Time Products. All one-time payments (there are consumable & non‑consumable.) 2. Subscriptions. Auto renewable subscriptions.
- 6. Commission for In-App Purchase 06 ● Google charges a 30% fee for one-time purchases and subscriptions. After a year of a continuous subscription the fee decreases to 15%. ● Apple has the same fee as Google to date. For subscriptions, the accumulated months do not expire for 90 days. From January 1st 2021, Apple starts the App Store Small Business Program. Developers whose total earnings from all App Store apps are less than $1M for the previous calendar year will be able to apply for a reduction of all In-App fees up to 15% (including paid apps).
- 7. In-App Payments in Flutter 07 The official plugin from the Flutter team (currently in beta). Each platform requires individual in-app adjustments in App Store Connect and Google Play Console.
- 8. Testing In-App Payments 08 For Android, you need to add a Google account to the License Testing list. Once done, you can check it on a device using a test payment method. For iOS, the sandbox account is created. You’ll need to log in when making a purchase. All payments in the external TestFlight builds are free yet these builds require going through a review.
- 9. Payment Gateway Transactions 09 ● Must be used for selling physical goods, services, and charity. ● Payments go through third-party providers (Stripe, Braintree, and others). ● Use an SDK or an API of payment gateway providers for integration. ● Payments are subject to an intermediary commission that's significantly less than in In-App payments (0.5–5% vs. 15–30%). ● Apps should let users manage their subscriptions and payment methods.
- 10. Payment Gateway Payments in Flutter 10 ● The only official SDK is from Square (native SDK wrapper) ● Many unofficial plugins from third-party developers
- 11. Payment Gateway Testing 11 Providers usually let developers use a sandbox mode for testing. It's the mode where transactions happen without charging money. Besides, there's a set of test cards for checking various possible events during the transaction: successful transaction, insufficient funds, and others.
- 12. 3D Secure Payments 12 It's an additional security layer when trying to charge funds from a user's card. This verification usually happens in a built-in browser and requires entering an additional code (from SMS or push notification) to verify the transaction. Payment gateway providers like Stripe may require the support for 3D Secure. Sometimes you know that it's necessary beforehand. Such payments are subject to additional commission.
- 13. In-app vs. Gateway: What to Choose? 13 Q: Is it possible to make this purchase without your application? If the answer to the question above is “no”, then it fits the definition of “digital content” and you should use In-App payments. There may be exceptions, but the answer to this question will help you decide in most cases.
- 14. Examples 14 1. Buying a filter for photos. You should use the In-App purchase since it only exists in the context of your app. 2. Ordering a water delivery. It’s a physical purchase that can be done without your app. Here you should use the Payment Gateway.
- 15. 15 In-App Characteristics: ● Testing purchases with the help of sandbox accounts ● May need a mechanism of restoring purchased products ● High fees Payment Gateway Characteristics: ● Creating a UI for entering and managing payment information ● Building Flutter plugins using providers’ native SDKs ● Unwillingness of users to enter credit card data (partially resolved with Apple Pay and Google Pay)
- 16. Is There a Way to Bypass In-App Payments? 16 If the app’s content falls under the definition of “digital”, you can’t bypass In-App payments. Any attempts can lead to sanctions from app stores up to getting your developer account blocked. You can offer a payment on the website as an alternative, but NOT in the app. (For example, you can use an email newsletter.) Any mentions of bypassing In-App payments may result in the app being blocked.
- 17. Consumption-Only Apps 17 Apps that give access to content bought somewhere else are feasible. Example: The Google Play Books app for iOS. It lets users read previously purchased books, but doesn’t allow for buying new ones.
- 18. Apple Pay and Google Pay 18 They allow to speed up the buying process with fast access to payment methods.
- 19. Integrating Apple Pay With a Provider (Stripe) 19 In the flow with card tokenization, you only receive a token from Apple Pay. The transaction itself is carried out by the app’s backend. Apple Pay certificate will allow you to link Apple Merchant to Stripe account for transactions.
- 20. Apple Pay Guidelines 20 ● The button must comply with guidelines and you should only use official resources (image and inscription). ● The button can be used in different modes (dark and light), have rounded edges, and do not merge with the background.
- 21. Review in the App Store 21 ● Builds can be created immediately in the live mediator mode. ● In the build's description, you should describe where Apple Pay is used and why.
- 22. Integrating Google Pay With a Provider 22 ● Providers must be supported as a gateway for Google Pay. ● Providers’ parameters are passed to the Google Pay SDK. This way, you can check the binding of the app to the provider’s account.
- 23. Google Pay Guidelines 23 ● The button must comply with guidelines and only official resources must be used (image and inscription). ● Google offers using their button variations with and without inscriptions in three styles: black, white, and white with an outline. ● The variation of a custom button with rounded edges and the logo from guidelines is also suitable.
- 24. Google Pay Integration Review 24 1) Upload the build to the Play Console with Google Pay test mode in closed alpha and wait until the build is processed. 2) Go to the Business console and log in using the Google account with access to the app in the console. (It’s preferable to use customer’s account.) Then fill in all necessary information about the business. 3) Find the app and hit “submit for review”. You’ll be asked to add five screenshots of the app showing the purchase workflow with Google Pay.
- 25. 25 After that, you should wait until the integration is reviewed. You can get an email telling you about some problems, but the status will remain "in review." In that case, you should fix the remarks, upload the new build to the alpha, and write to the support about your intention to re-submit the integration for review. After a while, it’ll appear again.
- 26. 26 Without reviewing the integration, Google Pay won’t make payments displaying the following message: “This merchant is not enabled for Google Pay”. It’s important to pass the integration review using your test build. After that, you can upload a new build with the Google Pay release mode and send it for review on Google Play.
- 27. Testing Apple Pay/Google Pay 27 Apple Pay: You should use the provider’s test mode and real bank cards. Funds won’t be charged. iOS simulators allows to use test cards of various payment networks. Google Pay: You should use the provider’s test mode and the test mode of Google Pay. In this mode, Google Pay sends fake data of the real card to the provider. Funds won’t be charged.
- 28. Stripe 28
- 29. Stripe Products: 29 ● Payments. Acceptance and processing of one-time payments. ● Billing. Creation and management of subscriptions. ● Connect. Creation of marketplaces. There’s a support for 3D Secure payments.
- 30. Stripe Connect 30 A tool for creating platforms and marketplaces where payments can occur between users. Users link their Stripe account to the app to be able to earn money. The app charges commission from each transaction. Example of use: a platform for finding trainers, a marketplace selling used items.
- 31. Stripe Can Be Used Via: 31 1. REST API 2. Native Android/iOS SDKs 3. JavaScript SDK 4. CLI SDK
- 32. Stripe Fees 32 Fees may differ depending on the country selected in the account. Here are the fees for the US: ● Payments. 2.9% + $0.30 per transaction, +1% for international card, +1% if currency conversion is required. ● Subscriptions are charged 0.5%. ● Stripe Connect. Has a free standard plan. Other plans bring more opportunities, but charge additional $2 per active user per month and 0.25% + $0.25 per transaction. ● 3D Secure may be subject to additional fees in custom plans.
- 33. When You Can’t Use Stripe 33 ● Financial and professional services: investments, virtual currencies, lending, etc. ● Intellectual property infringement, regulated or illegal products and services: gambling, sale of controlled substances, services for 18+, etc. ● Unfair or deceptive actions: get-rich-quick schemes, blackmail, reselling services. ● Doubtful high-risk businesses: financial pyramids, boosting subscribers on social networks, etc. https://stripe.com/restricted-businesses
- 34. Braintree 34
- 35. Braintree Products: 35 ● Braintree Direct. Online purchases and subscriptions. ● Braintree Marketplace. A Stripe Connect alternative that lets connect other Braintree merchants to your service or platform.
- 36. Braintree Can Be Used Via: 36 1. GraphQL API 2. Native Android/iOS SDKs 3. Drop-in UI SDK 4. JavaScript SDK
- 37. Drop-In UI 37
- 38. Drop-In UI 38 ● Based on standard native SDKs (Android, iOS, JS) ● Supports regular cards, Paypal, Venmo, Apple/Google Pay ● Provides a ready-made UI for quick payments integration with customization capabilities ● Supports 3D Secure payments
- 39. Braintree Fees 39 Commission depends on the country. Here are the fees for the US: 2.9% + $0.30 per transaction for payments and subscriptions 3D Secure payments are subject to additional fees per each transaction. There are no publicly available prices.
- 40. When You Can’t Use Braintree 40 https://www.braintreepayments.com/legal/acceptable-use-policy ● Activities forbidden by law or policies of card issuers (Visa, Mastercard, and others) ● Activities that may harm the Braintree’s reputation ● High-risk activities with potentially high fines ● Specific prohibited activities: flight tickets, betting, auctions, cashing, gambling, subscriptions lasting more than a year, and some others
- 41. Ivan Myzherytskyi Flutter developer Thank you for attention