Every business that sells something through an app, whether it’s subscriptions and bookings or upgrades and products, faces the same question: how do you make paying inside the app feel effortless? In-app payments are where technology, design, and compliance meet, and ease of payment often leads to increased sales. It’s a massive opportunity for businesses: global in-app purchase revenue reached $188.96 billion in 2024.

Well-crafted in-app payments disappear into the user experience: one tap, confirmation, done. But there are many systems behind that simple transaction, from sensitive data handling to platform policies and gateway processing. These systems work together to move money safely and instantly. This guide discusses what you should know about in-app payments.

What’s in this article?

• What are in-app payments and how do they work?
  
• What are the benefits of using an in-app payment gateway?
  
• How do you choose the best in-app payment solution?
  
• How do you add a payment gateway to your app?
  
• What are the common challenges with in-app payment integration?
  
• How Stripe Payments can help
  

What are in-app payments and how do they work?

An in-app payment is a purchase completed inside an app without bouncing the user to a browser or outside checkout page. It makes ordering takeout, booking a ride, or buying premium app features easier and faster.

A payment gateway and processor work behind the scenes to execute that transaction safely and successfully. When a user confirms a purchase, the app collects their card or wallet details, encrypts or tokenizes that data, and sends it to the gateway’s servers. The gateway then routes it through banking networks for authorization and returns an approval, all within seconds, while the customer never leaves your app’s interface.

The kind of in-app payment solution you need will often depend on what you’re selling. There are two main options to choose from:

• Platform-native in-app purchases, such as via Apple’s App Store or Google Play, cover digital goods and subscriptions. The platform takes a commission, usually 15%–30%.

• Third-party in-app payment gateways handle physical goods, services, and other transactions allowed under app store rules.

Developers typically integrate these through a software development kit (SDK) or an application programming interface (API). These tools manage everything from secure data handling to authentication methods such as 3D Secure. The result is a payment process that stays inside the app, feels instantaneous to the user, and meets security and compliance standards.

What are the benefits of using an in-app payment gateway?

A good in-app payment gateway transforms the checkout process from a barrier into part of a successful payment experience. It keeps customers engaged, shortens the path to purchase, and gives your team more control over how money moves through your app.

Here’s a detailed look at why in-app payment gateways are so popular.

A faster, cleaner checkout

When payments happen inside the app, users don’t need to switch screens or re-enter details. This continuity results in fewer abandoned carts and a higher rate of completed purchases. On apps, businesses can see conversion rates up to 63% higher than on mobile web.

Security that scales with you

Online purchasing requires safe management of sensitive data. Modern gateways encrypt and tokenize card data so that raw numbers never touch your servers and create a vulnerability. They also maintain compliance with the Payment Card Industry Data Security Standard (PCI DSS), which minimizes your exposure and gives customers confidence that their data is safe. Features such as biometric authentication help businesses meet security standards and users’ high expectations.

More ways to pay

People typically want to pay with the method that’s most familiar to them, whether that’s a card, a digital wallet, or a bank debit. A strong in-app gateway supports a range of local and global payment methods with one integration so you can expand markets without retooling your app.

Brand consistency and insight

Keeping checkout inside your design preserves your app’s look and feel. It also gives you visibility into transaction behavior, which helps you refine pricing, test features, and understand what drives repeat purchases.

In-app payments make the path to payment simpler for customers, which can also increase sales and intel for businesses.

How do you choose the best in-app payment solution?

In-app payment partners have a meaningful effect on your customer experience, growth potential, and compliance scope. To choose the right one, look for a balance of technical fit, user experience, and the potential for long-term scalability.

Below are some common guidelines for selecting the best in-app payment solution.

Know your platform rules

First, consider what your app sells. If it’s digital content or subscriptions, Apple and Google usually require you to use their in-app purchase systems. But if you’re selling physical goods or real-world services, you can use an external payment gateway.

Stay compliant with store policies. This protects your app from rejection and keeps you in control of your margins.

Prioritize security and compliance

Every payment you receive can introduce risk. As you compare payment partners, look for a gateway that handles tokenization and encryption and complies with the PCI DSS. All sensitive data must be processed safely. Built-in fraud detection and support for authentication standards such as 3D Secure help to further reduce exposure and allow your team to spend less time managing security overhead.

Think about the developer experience

Your engineering team will be the ones building and maintaining this integration. The best payment SDKs and APIs are easy to read, well documented, and regularly updated. Helpful extras such as ready-made interface components and sample projects can make setup faster and minimize mistakes. If the documentation feels confusing or incomplete, that’s a sign to look for a provider that’s easier to work with.

Understand pricing and scalability

Fee structures can set you up for growth so compare them as you shop around. Look at each company’s flat per-transaction rates, cross-border fees, and refund costs. Transparent pricing matters as much as performance. The best gateways are capable of handling volume peaks, recurring billing, and international expansion.

Offer a variety of payment methods

Offer your customers the payment options they want to use. The ideal gateway supports digital wallets, local payment types, and multicurrency transactions. If you plan to expand internationally, that flexibility will save you from needing to reintegrate later.

How do you add a payment gateway to your app?

Adding payments to a mobile app requires a sequence that safely connects your frontend, backend, and payment provider. Here’s what that looks like in practice.

1. Set up your payment account

Register with your chosen provider and complete your business verification. You’ll receive API keys: a public key for the customer side and a secret key for your server. Use test keys first and confirm you’ve enabled every payment method you plan to support.

2. Integrate the SDK or API

Install the provider’s SDK for your platform, or integrate via its API if no SDK is available. Then, initialize it with your publishable key. You can either use a drop-in user interface (UI) for fast setup or build a custom flow using lower-level API calls for full control of the checkout experience.

In both cases, the provider’s SDK or client-side components encrypt and tokenize payment details before they’re sent to the gateway.

3. Add secure server logic

Your backend should create payment intents, such as storing customer card information for future purchases and charging for a monthly or annual subscription. It should also verify transaction outcomes and handle webhooks, such as payment confirmations and inventory updates, for real-time exchange of information. It’s important to keep your secret key on your server (never in the app bundle) and validate every customer request.

4. Test, then go live

Before you launch, try to predict potential problems in advance and run through each scenario using sandbox credentials, created specifically for test runs. This will help you account for declined cards, expired dates, and network drops before they happen. Once everything works reliably, switch to live credentials, process a real test payment, and monitor your first transactions in the dashboard.

What are the common challenges with in-app payment integration?

Connecting security, user experience, and compliance while building in-app payments can pose real challenges. But the risk is manageable with planning and the right tools.

Here are some areas to pay extra attention to during the integration process.

Security and compliance

Protecting payment data is one of the most important challenges for a business. Apps need encrypted communication, PCI-compliant tokenization, and clear separation between customer and server to protect customers’ information—and yours—against attacks. Instead of storing sensitive data locally, use a gateway that helps you maintain compliance and reduces risk.

App store requirements

Apple and Google have strict rules for how digital goods are sold. Learn the playbook. Knowing where you can use an external gateway versus platform billing saves time and prevents rejections. Ensure compliance up front to keep your app in the store and your pricing under control.

Integration complexity

Getting your app, backend, and payment processor to work together can be tricky if they’re not perfectly aligned. Assure that each system talks to the others reliably. Use idempotent API calls to prevent duplicate charges, set up webhooks so customers automatically get purchase confirmations, and test edge cases such as poor connections and failed payments to ensure your app runs smoothly.

User experience

A clumsy checkout can negatively impact sales so keep the design native to your app and identify any errors. You’ll also want to minimize typing for the customer. The best gateways provide flexible UI components that make it easy to create polished checkout experiences.

How Stripe Payments can help

Stripe Payments provides a unified, global payment solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.

• Improve payment performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.