How to Create an Online Payment Website Like PayPal?
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Interested in knowing how to create an online payment website like PayPal or Stripe?
That’s an excellent market with many opportunities to be explored.
According to Globe News Wire, the “eCommerce payment market worldwide is projected to grow by US$32. 7 Billion, driven by a compounded growth of 12. 9%.”
eCommerce store credit card processing requirements are not the only source of growth for digital payments.
We are increasingly turning to electronic forms of payments to pay for just about everything. Since all of these demand vendor transaction fees, there is a great deal of money to be made processing digital payments.
An overview of PayPal
PayPal is one of the most popular online payment processors and currently operates in over 200 markets around the world. At the time of writing, PayPal has 277 million active account holders, enabling consumers and merchants to receive funds in over 100 currencies.
PayPal users can withdraw funds in 56 currencies, while they have the ability to hold funds with PayPal in 25 currencies. The app offers the following features:
- It can work both as a merchant payment system for any online store such as Shopify as well as a personal payment gateway.
- Is easily integrated into all shopping carts and point of sale (POS) functionalities.
- Services all kinds of uses from an online store to personal online payments.
- Consumers can conduct peer-to-peer payment transactions using PayPal.
- They can link their debit card, credit card, and bank accounts with PayPal.
- The app has powerful security features including encryption, fraud screening, and address screening.
- Operating under stringent regulations applicable in the financial services industry, PayPal has robust “Know Your Customer” (KYC) processes.
- App users can send money around the world, moreover, they can easily manage their money with the ability to track their transactions.
- Consumers can access PayPal on the web, moreover, they can use its Android and iOS apps.
- Good record of data security in regards to storage of credit card information etc.
- Quick payment process.
- Reasonable processing fees.
How to create an online payment website or app like PayPal?
A software development project to build an online payment website or app like PayPal would involve the following steps:
1. Project Scoping
The project scope statement would include the following:
- Building a web app, an Android app, and an iOS app;
- The app should offer the following features:
- Core online payment features like opening user and merchant accounts, online payment, transaction/balance reporting, etc.;
- ID verification for users and merchants;
- CRM features that govern the relationship with merchants through a merchant account;
- Push notifications.
2. Selecting the right SDLC model to create an online payment website
I recommend that you launch a “Minimum Viable Product” (MVP) with the above features, targeting one geography. This would enable you to get real market feedback, and you can subsequently enhance the app.
This calls for iterative development, and agile is the right SDLC model for such projects. You can read about agile in “What is software development life cycle and what you plan for?”.
3. Formulate a development approach
Consider the following approach to develop this app:
- Use “Platform as a Service” (PaaS) and “Mobile Backend as a Service” (MBaaS) platforms for developing web and mobile apps, respectively.
- Implement features like online payment, ID verification, CRM, and push notifications using “Software Development Kits” (SDKs) and “Application Programming Interfaces” (APIs).
- Utilize “Integrated Development Environments” (IDES) and frameworks to expedite the project.
- Keep in mind that in the future you will expand to different geographies, therefore, use “app internationalization” best practices. You can read about it in “The ultimate guide to mobile app internationalization”.
4. Build a “scrum team” to create an online payment website or an app
I recommend that you use the “scrum” technique in this project, which is suitable for agile projects. Build a team with the following roles:
- Business analysts;
- UI designers;
- Web developers, with Node.js expertise;
- Android developers, with experience in Kotlin;
- iOS developers, with Swift skills;
- A project manager (PM).
The PM performs the role of a “scrum master”, and forms small, cross-functional teams called “scrum teams”. The teams work on “sprints”, i.e., iterations in scrum parlance. Read more about scrum in “How to build a scrum development team?”.
5. Sign-up for managed cloud services platforms for the web and mobile app infrastructure
Unlike large enterprises with existing IT infrastructure, start-ups in the online store industry might want to avoid large upfront investment in IT infrastructure. They typically want to get going with the development quickly, and managed cloud services platforms can help here.
As I had earlier explained in “10 top PaaS providers”, using a PaaS platform helps in web app development as follows:
- The PaaS provider manages the cloud infrastructure, networking, server, storage, middleware, operating system, and runtime environment. A developer can just concentrate on the coding.
- You can easily integrate databases and 3rd party APIs into your app, with the help of a PaaS platform.
- DevOps is increasingly important for agile projects, and PaaS providers provide excellent DevOps tools.
- You would like your app to scale well, and PaaS providers have the right “Application Performance Monitoring” (APM) and auto-scaling solutions for this.
Use AWS Elastic Beanstalk, as AWS has excellent cloud capabilities. What’s more, using the same AWS account, you can also sign-up for AWS Amplify, i.e., the MBaaS offering from AWS. This helps as follows:
- You don’t need to hire cloud platform architects, infrastructure architects, and mobile backend developers. Managing a mobile backend takes time, however, using an MBaaS can save that time for you. AWS Amplify will manage the infrastructure, persistent storage, etc.
- AWS Amplify will make implementing features like user management, security, and push notifications easier.
- Mobile platforms and devices are many, and this adds to the complexity of mobile app development. It becomes easier to manage when you use an MBaaS platform.
- Integrating 3rd party APIs, and scaling your app are other areas where you benefit from using an MBaaS platform like AWS Amplify.
6. Get an online payment solution
I recommend that you use an API/SDK solution to implement the core online payment features. Braintree, which is from PayPal, provides a robust solution for this, named “Braintree Direct”. This has the following features and advantages:
- An app built using this solution can accept and process payments online.
- Merchants will find in your app everything concerning online payment, and they can sell online to their customers.
- Braintree Direct is compatible with web, Android, and iOS.
- The solution incorporates industry-standard security features.
- Braintree Direct has fraud prevention features, moreover, it includes industry-standard encryption solutions. There are advanced fraud-prevention tools, and you can also add “3D secure” to provide additional security.
- It has a global reach and handles popular payment options including debit card payments and credit card payments from Visa, American Express, and Mastercard, as well as payment methods such as PayPal, Apple Pay, Google Pay, Samsung Pay, Venmo, etc.
- Braintree Direct is PCI DSS-compliant, and it supports scalability.
- Recurring billing, account updates, and robust reporting are the other key features.
- The wide range of integration options available with Braintree Direct makes it easy to include other platforms and applications like billing, analytics, etc.
Your development team can check out the following resources for implementing Braintree Direct:
- Read this guide for help with development.
- Braintree Direct also has tutorials to provide further help to programmers.
7. Procure an ID verification solution
An online payment app needs an ID verification solution, to meet the stringent regulations governing the financial service institutions. The solution should enable the verification of government-provided ID, moreover, it should handle “Know Your Customer” (KYC) and “Anti Money Laundering” (AML) process compliance.
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- Your app will have the ability to verify government-provided IDs like driver’s licenses, state IDs, etc.
- This ID verification can happen online and on a real-time basis.
- Online account opening will be easier with streamlined KYC/AML compliance.
8. Sign-up for a CRM solution
Now, you will need to conduct the entire gamut of business activities with merchants that open accounts in your app. This calls for a solution providing the entire suite of CRM features. I recommend that you use Zoho here since they have a robust CRM solution.
9. Buy a bulk SMS solution
10. Download and set up IDEs
Now is the time to obtain the development tools, therefore, I recommend that you download and set up the following IDEs:
- IntelliJ IDEA, for the web app development, along with this Node.js plugin;
- Android Studio, for coding the Android app;
- Xcode, for the iOS app development.
11. Get a browser and mobile device lab on the cloud for testing
You would want to test your web and mobile apps with a wide variety of browsers and mobile devices, however, that’s not easy with open-source testing frameworks. Experitest has the right solutions for you, as follows:
- You can use their “Mobile device & browser lab” on the cloud, which enables access to a large set of web browsers and mobile devices.
- Use “SeeTest Reporter” from Experitest to get robust test reports and analytics.
12. Develop your web app
Now that you have sorted out the platforms, SDKs/APIs, and development tools, it’s time to develop the web app! This involves the following steps:
- Use js to code the web app, since this open-source runtime environment helps in developing performant and scalable web apps. Refer to this AWS Elastic Beanstalk documentation to find this runtime on Elastic Beanstalk.
- You can integrate the database resources of your choice, following the instructions in “Adding a database to your Elastic Beanstalk environment”.
- Integrate Braintree Direct, ID.me, Zoho CRM, and Twilio APIs.
- Test your app, and deploy it, using the guidance available in “Deploying Node.js applications to AWS Elastic Beanstalk”.
13. Design the UI for the mobile app
Your UI design team needs to design an appealing and easy-to-use UI, and the following resources can help:
- “Human Interface Guidelines”, for the iOS app UI design;
- Material design guidelines, for designing the Android app UI;
- “How to design the perfect icon for your mobile app?”, which has guidance for designing icons;
- “Mobile navigation menu examples”, for choosing an appropriate mobile navigation menu pattern;
- “8 trends in mobile app color scheme”, for selecting the right color scheme.
14. Code, test, and deploy the Android app
As the next step, let’s proceed with the Android app development, as follows:
- Use Kotlin, a powerful, feature-rich language that helps in coding fast and performant apps. Developers benefit from its concise syntax, moreover, Kotlin helps in avoiding common errors like null pointer exceptions.
- Android Studio supports Kotlin, and you can read “Get started with Kotlin on Android” for guidance.
- Integrate SDKs/APIs into your code.
- Use Espresso for testing, along with Experitest mobile device lab on the cloud.
- You can read this guide, for publishing the app to Google Play.
15. Developing the iOS app
The development of the iOS app involves the following steps:
- Code the app using Swift, which helps in creating fast and performant apps. Swift offers powerful features, and the code is easy to read and maintain.
- Use Xcode for the development, and XCTest for testing. You also need to use the cloud-based Experitest mobile device lab.
- Integrate Braintree Direct, ID.me, Twilio, and Zoho CRM SDKs/APIs with your code.
- After your testing, follow this guide to publish the app to the Apple App online store.
16. Use effective tools to manage the project
A scrum team has the following key activities:
- Estimating and prioritizing requirements to plan iterations, which they do in “sprint planning meetings”;
- Project status tracking, using “daily stand-up meetings”;
- Sprint approval post-demonstration of the app, in “sprint review meetings”.
You should use an effective PM tool like Asana to manage these activities.
Building an app like PayPal?
A project to create an online payment website or app like PayPal can be complex, despite using platforms, SDKs, APIs, IDEs, and guidelines. You might benefit if you take professional help from a software development company. Read our guide “How to find the best software development company?” before you engage a development partner.
If you are looking for developer expertise then why not take a moment to fill out a DevTeam.Space project specification form to find out what we can do for you.
We have a large community of developers who have expertise in all the tach stacks used today. All of their work is guaranteed by the company to help you avoid the costly pitfalls associated with hiring outsourced developers.
We have already worked alongside numerous business owners to build their payment processing applications. Whether it is for an eCommerce platform or to add a checkout page to an existing app, we have the expertise to ensure you get a secure, streamlined, and reliable payment processing functionality.
Frequently Asked Questions on how to create an online payment website or app
• Google Pay
You will need to start by creating a project plan and then onboarding developers. After you have done this, you can set up the infrastructure and then outline the tasks to be completed. You are now ready to start the ball rolling.
You can find developers in the DevTeam.Space community. The platform has lots of experience building payment gateways and other financial solutions.