How To Create an Online Payment Website Like PayPal?

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.

In this article

1. Payment Industry Trends and Statistics
2. How To Create Online Payment Website or App Like PayPal?
3. Helpful Tips for Developing Web and Mobile Payment Apps
4. FAQs on How to Create an Online Payment Website or App

Payment Industry Trends and Statistics

Having become the 21st century’s tech symbol, in 2024, AI is continuing to advance and penetrating into every single industry. Online payment systems and card payment organizations are no exception.

For example, Visa has recently added three AI-powered fraud prevention tools to the Visa Protect suite of products for businesses. PayPal announced earlier this year their intention to launch AI-driven tools.

A Statista report estimates that the transaction value in the global digital payments market will increase to $16.59 trillion by 2028 from $11.53 trillion in 2024. The report estimates an 9.52% CAGR during this period.

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. Let’s explore how to build an all-in-one solution for payment processing.

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How To Create an Online Payment Website or App Like PayPal?

Developing an online payment platform or digital payment app requires a deep understanding of FinTech as well as experience in building web, Android, and iOS apps. If you don’t have a professional software development team with the relevant expertise to take on a task like this, you can submit a request for a complimentary discovery call from DevTeam.Space. One of our tech account managers who managed similar mobile payment projects will contact you shortly.

Now, let’s explore how to build an online payment website or app. A software development project like this would involve the following steps:

1. Project Scoping of mobile payment app development

The scope of a project to develop a mobile payment application or payment website will 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.

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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 do you plan for?”.

3. Formulate a development approach

Consider the following approach to developing 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;
• Mobile developers:
  • Android developers with experience in Kotlin;
  • iOS developers with Swift skills;
• Testers;
• A project manager (PM).

The PM performs the role of a “scrum master” and forms small, cross-functional teams called “scrum teams”. The software development 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 investments in IT infrastructure. They typically want to get going with the development quickly, and managed cloud services platforms can help here.

As I explained in our guide to top PaaS providers, using a PaaS platform helps in the following ways:

• 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 3^rd 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 3^rd 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 third-party software has the following features and advantages:

• An app built using this solution can accept payments 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 the 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:

• The overall documentation for the Braintree Direct solution is available here. This is a comprehensive repository and covers their Android and iOS SDKs. For the web development part of the project, you can find their JavaScript SDK-related information in this repository.
• Read this guide for help with development.
• Braintree Direct also has tutorials to provide further help to programmers.

Braintree is a full-stack payments platform that, if needed, can be used as a payment gateway only — in fact, it’s one of the most popular payment gateways.

7. Procure an ID verification solution

An online payment app needs an ID verification solution to meet the stringent regulations governing 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.

I recommend that you use ID.me for this, which has a robust solution for the financial services industry. ID.me offers the following features:

• 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.

You can access the ID.me verification APIs and SDKs on their developer portal. Their API documentation is also available.

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.

You can read about the features offered by the Zoho CRM, and you can access the API. Detailed API documentation is available here.

9. Buy a bulk SMS solution

The payment app needs push notifications to engage users. Therefore, I recommend that you use a bulk SMS solution. You can sign-up with Twilio for their “Programmable SMS” offering.

They have extensive documentation available, moreover, you can also read “Messaging Services” for more guidance. Check out the Twilio pricing plans.

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 Node.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 by 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 application

Your UI design team needs to design an appealing and user-friendly 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;
•  Our guide to mobile app color schemes.

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. You can check Kotlin Android development guides for more information.
• Integrate SDKs/APIs into your code.
• Use Espresso for testing. Also, use the digital.ai mobile device solution.
• Read the Android app publishing guide, and submit your 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 development and XCTest for testing. 
• Integrate Braintree Direct, ID.me, Twilio, and Zoho CRM SDKs/APIs with your code.
• Test the app. Submit the iOS app to the Apple App 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.

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Helpful Tips for Developing Web and Mobile Payment Apps

We offer the following tips for developing online payment apps:

A. Hire developers with in-depth knowledge of online payments

A series of processes must work seamlessly so that a merchant can accept payments online. The online payment method is increasingly popular; however, it involves complexities. You certainly need good coders to develop online payment apps. The developers also need industry domain knowledge, from things like payment processing and merchant account to online payment forms and recurring billing.

When interviewing, evaluate whether the developers know the following:

• How does a payment gateway work?
• How do payment gateways ensure security when payments are transferred to merchant accounts, i.e., special bank accounts for businesses to accept payments with credit-and-debit cards?
• What is a payment processor vs payment gateway?
• Which key processes do payment processors execute?
• Can payment processors charge transaction fees? What are the regulatory requirements around this?
• What is payment process cycle?
• How do payment apps secure payment details?
• Which processes allow payment apps to connect to a merchant account, business bank account, customer’s bank account as well as to credit-and-debit cards?
• How do payment apps support recurring billing and recurring payments?
• Which factors one should keep in mind while designing an online payment form?
• How to mask sensitive information like debit cards, customer’s bank account, etc. when processing online payment forms?
• How to connect a payment gateway to a payment form?

The above isn’t an exhaustive list; however, you get the point!

Hiring such developers can be hard. However, we at DevTeam.Space have many developers with extensive experience in building apps for making payments online.

B. Review well-known payment apps like Apple Pay, Google Pay, etc.

You should review well-known payment apps like Apple Pay before developing your own payment app. Analyze how the market-leading apps work. Assess how they manage the different processes around accepting payments.

Evaluate other aspects, e.g., how these apps integrate payment processing with major credit cards. Check how they handle direct debit, recurring payments, etc. You can get important ideas by reviewing the market-leading payment apps.

C. Prioritize data security when developing apps for web and mobile payments

Whether you develop a payment portal or payment gateway, you are targeting a highly regulated industry. Customers enter sensitive information when making online payments. Payment processing companies must process them before merchants can accept online payments.

A payment gateway connects multiple stakeholders in this process. These include banks, credit card companies, and merchants accepting payments. As you can see, there are many touchpoints when delivering payment services online.

Cybercriminals routinely target payment portals and apps. They try to make off with sensitive information entered on the payment forms.

You need to build an effective data security and privacy strategy. It should include aspects like encryption, detecting cybersecurity threats, mitigating key application security risks, etc.

You also need programmers that how to develop bug-free payment processes. Cyber-criminals often exploit bugs in programs to attack apps to make and accept payments online. DevTeam.Space can provide you with such developers.

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Building an App Like PayPal?

A project to create an online payment website or app 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 tech 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.

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FAQs on How To Create an Online Payment Website or App

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