6 Reasons Software Engineers Are Developing Payment Processing Apps

Finnegan Pierson

Payment processing applications like PayPal and Venmo have become incredibly popular in the last few years. Whether you're sending your half of the rent or paying for goods and services, almost everyone has used one of these apps to send payment. Software engineers are jumping on this trend to create the next most popular payment app, and here's the breakdown of why they're doing it.

1. Total Control of the Process

Payment apps can be a standalone product, but more frequently they're being created for specific businesses to use for their services. Of course, businesses can choose to use apps like PayPal, and many do. Using a premade payment portal is usually much cheaper and comes with built-in security. Python frameworks make these apps a safe option that can be sufficient for many businesses. 

Many customers are just fine with that option since many use these apps in the first place. But one reason many businesses are choosing to develop their own apps is that they want total control over the payment process. If a business wants all the data and the power to customize the payment process, hiring a developer to create a custom payment gateway is the way to go. 

2. Tons of Potential Customers

In the past, only a few types of businesses needed custom payment methods as part of their business model. But now developers can pick from a wide pool of potential candidates. For example, billing companies that want to update their software are typically in the market for developers. IT firms, large banks, and large merchants are also good places to look for development positions. Any business with a high turnover rate is unlikely to depend on third-party providers for payment methods, so keeping an eye out for those businesses can land you a job in no time.

3. Additional Revenue

Another reason why custom payment gateways are so popular for large businesses is that they can create their own stream of revenue. Through the SaaS (Software as a Service) process, businesses that hire developers to create custom software can then sell their software as a service to other businesses. Developers who can create custom software are not only creating a service for businesses to use but are also generating future revenue. This means they should not just be paid for their services but for the earning potential of their software.

4. Lower Fees

Businesses that pay for third-party payment processing services are going to be paying for that service as long as they're in operation. There are no one-and-done payment options, so using external services has to be reckoned into any business's yearly budget. Hiring a developer to create custom software, however, means you'll be paying once for a product you'll own forever. No registration fees, no yearly payments, just one price for a product that will end up paying for itself in the long run.

5. Custom Features

Many businesses will go to great lengths to offer their customers the best possible experience during entire transactions. Off-the-shelf products like third-party payment gateways will have limited features and may be severely lacking in what customers are looking for. For example, businesses that want a built-in recurring payment option so customers can subscribe to products may not be able to offer that. Allowing your payment software to let products like vanilla lotion, contacts, or thrive patch to be recurring orders, will increase its usability. If a business sells to multiple countries where currency may be different, that might be impossible, too. Custom software allows businesses to dictate the features that end up on the final product and thereby provide customers with what they need. 

6. Scalability

Maybe a business decides to go with a third-party payment option when they first start out. Their businesses needs are few, and customers are fine with a bare-bones approach. But once a business starts expanding and picking up speed, its needs are going to change very quickly. Custom software provides businesses with scalability that makes it a lot less of a hassle to change and grow as needed. The increasing desire for custom products is creating a new niche for developers willing to look for opportunities.