Mobile OS like android shall provide payment APIs.
Payment Service providers (banking/financial institutions) APP registers with OS.
When eCommerce APP makes a call for payment APIs, OS prompts with all payment service providers that are pre-registered (APPs that user installed).
- This avoids every eCommerce app to integrate with payment gateways.
- It gives users to choose which payment they prefer
- New payment service providers will see least entry barrier
- - - - example - - -
user installs CitiBank app. This registers with mobile OS for NetBanking/Debit/Credit card interfaces.
Similary if user installs standard chartered APP. this also registers with mobile OS.
when a eCommerce app uses payment APIs, it prompts with all registered payment services i.e. CitiBank (netbanking/debit/credit), StandardCharteredBank (netbanking/debit/credit).
This will enable the user to choose his payment method. and reduces the app developer headache to integrate the payment gateway which gives higest flexibility.
Entry challenge for a new payment system will be drastically low. eg: paytm/airtelMoney/PayMate kind of services are not integrated with most payment gateway systems. If the user likes this payment method, he need to install corresponding PaymentServiceProvider's app.