What are APIs?
APIs can be a great friend to you and your payments. If you accept or make digital payments, then APIs are what you need to do it quickly, easily, and safely. In a payments process, data flows between different software applications. An API makes it easy for these applications to talk to one another smoothly. With APIs, you can merge your different software so that your applications can share data in real-time.
This leads to quicker verification and acceptance of payments. Not only that, but they also impact your fund captures, refunds, and reconciliation processes. Overall, API makes online and mobile payments much faster and safer. This means more cost savings, better sales, and improved customer satisfaction.
Let’s take a deeper look at how APIs can transform your payments experience.
APIs Improve Payment Experience
When payments are processed digitally, a customer’s data is collected at the source, such as your e-shop or mobile app. This data is shared through the card network to the card-issuing bank through APIs. The bank then verifies the transaction and gives you and your customer the confirmation, all of this through APIs. The money is then debited from the customer’s account and deposited in your merchant account.
When you use the right API, your payment process becomes much smoother. You can design your own payment flow based on your customers’ liking. You can make your payment processing faster and avoid delays. This helps your customers to complete their checkout quickly. You can also add flexible payment plans to accept a range of paying options. For instance, recurring payments, plans with different pricing, or different payment methods.
An API can help you to improve the user experience. You can design a simple checkout page that is easy for your customers to use and navigate. They get smart prompts which helps them to complete the checkout process faster.
APIs can transform your payment experience and allow for faster and more secure checkouts. This is great to boost customer confidence and win their loyalty. And this is good for your business.
APIs make your Payments on point
APIs help you to make your payments more efficient. They detect data entry errors when they happen. For instance, when a customer types incorrect bank account details. In these cases, your payment APIs can connect directly to other APIs in the ecosystem and thus prevent these errors from happening.
With the right APIs, you can build a stable payments system that can handle heavy loads. They help you to handle large volumes of transactions with ease and lowers payment failure rates. Payment APIs make the payment process more precise and give you real-time updates on your payments. This helps you to reconcile and settle your payments instantly. This reduces your transaction risk, improves cash flow, and takes away the worry of having to track your payments.
APIs save you money
Payment APIs give you greater control over your payments and helps you to save money and time.
APIs connect directly to the payment infrastructure. This helps you to keep your operating costs low. APIs are flexible and easy to scale and can be merged with other applications and tools that you use within your business. For instance, to your accounts software or inventory management tools. This helps you to streamline your other business processes, thus saving on costs and time.
Protect you from fraud
As global cross-border e-commerce rises, merchants need to keep payments safe and secure. They also need to comply with data and security laws to ensure transactions are protected. Thus, using robust encryption and being compliant with security norms is key to fight fraud.
Payment APIs help you to manage fraud in real-time. They reduce the risk of fraud by using strong customer authentication features. This helps you to process transactions safely and comply with global security norms, such as PCI.
Choosing the right API
While payment APIs can give you a great business edge, choosing them wisely is crucial.
The right payment API should be flexible. It should give you the freedom to design your own payment flow. It should be able to fit in with whatever programming language, use cases, or business logic you are using. This way, your payments will be more efficient, and you will have more control over the entire payment process.
The right payment API should be easy to integrate into your current system. It should be easy to test and deploy without the need for complex codes. Look for APIs that can be used over any protocol and do not need any other software to be installed.
The right payment API should be robust and stable. It should be able to handle large volumes and bulk loads so that your payments don’t fail. Having near-zero downtime is highly preferable to keep your payments running smoothly.
The right payment API should have clear how-to guides to help you with easy integration. This information must be concise and clear and come with clear examples on how to use it. This info should also be regularly updated as new versions and features are rolled out. This way, developers can test out to see if any new features clash with the existing systems.
Your payments partner should also offer you a ‘sandbox’ environment where you can test out the APIs before going live with them. This way, you have a much better understanding of how the APIs perform with your current system. This also helps you to see how it appears from the customer’s point of view. Thus, you can align the APIs to your use case and zero in on what works best for your business.
Finally, choose a payments partner who gives you close support. This is as crucial as having a robust system, if not more. They can help you to track down issues and respond to them in real-time. The right partner will understand the needs of your business and help you respond quickly to these.
Antony Robinson is an experienced IT expert, information architect and a customer experience evangelist. He has over 30 years of experience in web technologies, user experience, media, and marketing. Antony is currently the CMO of Novalnet AG, a fintech company in Germany. As CMO, he leads the company’s marketing strategy and fosters collaborations. Antony’s expertise and dedication to technology and innovation make him a valuable leader in his field.