In-app payments: what are they and how they work

In-app payments: what are they and how they work

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In-app payments: what are they and how they work

Mobile phones are an inseparable part of most people’s daily lives. More and more people are shopping via their mobile devices, and it’s only natural that businesses want to offer them the most convenient shopping experience.

But in-app payments also benefit companies as well as their clients. In-app payment solutions can help businesses boost conversion rates and increase customer retention. Some solutions can even make in-app purchases so easy that consumers can pay for their shopping with a single click.

Find out what in-app payments are, how they work and what benefits they bring. And finally, learn how kevin.’s mobile in-app payment solution can help businesses generate more sales while ensuring the best user experience for their customers.

What are in-app payments?

In-app payments enable consumers to pay for goods or services directly in the merchant’s mobile application. This means shoppers can conveniently make purchases without leaving the mobile app, maintaining a seamless customer experience.

How do in-app payments work?

From the end user perspective, in-app payments allow the purchase of items or services directly in a mobile app. Users don't have to leave the app to complete the transaction, entering their payment details or choosing their local bank inside the application.

From the company’s side, to enable in-app payments, usually a mobile software development kit (SDK) integration and backend integration are required. The process is easy and straightforward. For example, kevin.’s mobile in-app payment solution is simple to integrate and can be natively used in iOS and Android projects. This solution also works with all the most popular cross-platform frameworks, including React Native and Flutter.

Examples of in-app payments

Mobile in-app payments can be used for a wide range of industries.

  • E-commerce companies can enable in-app payments to let their customers pay directly from the app
  • Some gaming companies feature free apps that generate profit by supporting in-app purchases, powered by in-app payments
  • Utility service providers can enable in-app payments to help clients conveniently pay their bills
  • Loan companies can make payment collection much easier by implementing an in-app payment solution into their mobile application

These are just a few examples of mobile in-app payments. Companies with mobile applications can implement payments inside their apps, regardless of their industry and business model.

Benefits of in-app payments

In-app payments bring various benefits. Here are some of the main advantages:

Higher conversion rates

Merchants invest loads of time and other resources to tackle the shopping cart abandonment issue. A complicated or suspicious checkout and lack of payment methods are among the main reasons for cart abandonment. An in-app payment solution can increase conversion rates as consumers don’t have to leave the mobile app environment to proceed with the payment.

Quicker settlement

Certain in-app payment solutions, such as kevin.’s, offer an account-to-account payment (A2A) method. This payment option enables consumers to pay for goods or services directly from their bank accounts. This means clients don’t need to enter any card details, which makes the payment process quicker. Moreover, the direct payment flow is much shorter, so the money reaches the business much faster.

Frictionless payment flow

Implementing an in-app payment solution maintains a smooth customer journey while navigating between the mobile application interface and the payment process. kevin.’s in-app mobile payment solution can be customised to match the visual interface of the mobile application. This way, users get to enjoy a frictionless payment flow that seamlessly integrates into the company’s app.

In-app purchases: external payment gateway vs in-app payments

In-app purchases mean buying something inside an app. Payments for these purchases can be enabled by an in-app payment solution or an external payment gateway.

An external payment gateway can deal with all the payments, but contrary to in-app payments, it takes the user to an external site to proceed with the transaction. Some companies prefer external payment gateways if their mobile application infrastructure isn’t secure and may lead to data breaches. An external payment gateway ensures that all the sensitive information is protected, and the app owner shifts all the related responsibility to the gateway provider.

However, using an external gateway means adding friction to the payment flow as you redirect your customer from your app to an external site. Meanwhile, an in-app payment solution can both ensure security and help create a seamless payment experience.

kevin. in-app payment solution ensures maximum security for all payments. It’s compliant with relevant regulations, such as PSD2 and GDPR. The direct account payments that kevin.’s solution enables are also more secure than other popular payment methods, as they completely eliminate the risk of card fraud.

kevin.’s mobile in-app payment solution

kevin. offers a robust and easy-to-integrate in-app payment solution. This is an excellent choice for every business that wants to provide clients with a convenient and secure payment experience.

kevin.’s payment solution can increase conversions and customer retention rates by offering an account linking feature. This feature allows customers to securely link their bank accounts to the business app and make purchases in a single click. Moreover, this solution can be customised to match the design of the business mobile application.

This solution supports banks across Europe, enabling companies to accept payments from over 350M customers in the EU and EEA. Get in touch and boost your business with a hassle-free in-app payment solution.

Adelina Kiskyte
Former Senior Content Manager
Adelina is an experienced content writer and content marketing expert. She enjoys working in the field of technologies and writing about innovations. Adelina’s journalism background helps her effectively gather information even on the most niche subjects and create engaging and informative content.