How Fintech Companies are Eradicating Banks Longstanding Dominance
The world’s top fintech companies have completely changed the payments landscape in recent years. Prior to financial technology powering online payments, banks reigned supreme. Today, Fintech companies offer powerful Payment APIs to compete with traditional banking, offering faster transactions at lower costs.
What is a Payment API?
Before we dive into explaining exactly what a Payment API (or Gateway API) is, let’s first cover what an API is.
An API, or Application Programming Interface, is simply a way for two computer systems to communicate. This means that one product or service can interface with another product or service, without needing to be physically connected. APIs have transformed technological advancement and in the case of finance, they’ve made fast, safe and low-cost global online banking a reality.
A Payment API, or Payment Gateway API, automates payment transactions between a customer and a merchant.
It processes the transaction and authorizes the payment between the merchant and the customer through a payment gateway.
A payment gateway is an engine that allows a merchant to accept online payments. It’s a must-have for any business operating online.
The Critical Role of the Payment API
Payment APIs help streamline payment processes and support many different types of payment methods. In turn, this helps improve customer satisfaction and retention, drives continued revenue growth and keeps customers loyal to your brand. Payment APIs also enable your business to access local payment methods in every single country across the globe. This helps you to expand your business globally by offering your customers a safe and easy way to pay online, wherever they are in the world.
Having a smooth and reliable API that fits your business needs is critical to your company’s success. Tools like Payment Gateway APIs also help merchants to gather financial data on customers (what they buy, when they buy, how they buy). This helps online businesses focus their advertising efforts, reduce risk and improve their customer service processes, among other things.
Using Your Payment API to Ensure A Flawless Client Journey
When it comes to the online payments experience there are two factors fintech companies must consider – what the business experiences (the back end) and what the customer experiences (the front end). A Payment API bridges these two experiences. The customer’s experience, what is commonly called the Client Journey, is an integral part of any company’s success. A web payments API is one way your business can offer secure and flexible global payment processing.
A payment API helps you to achieve a smooth client journey. You’re able to offer your customers a seamless and safe payment experience. You can give them the option to choose a preferred payment type, from international credit cards to hyper-local alternative payment methods. This helps to create brand loyalty and increase revenues.
Keep Your Payments Running Smoothly, Keep Your Business Running Smoothly
At the end of the day, when your payments experience is smooth, your business will run smoothly. It’s a simple fact.
Payment APIs are integral to this and help to ensure your company’s success.
There are a lot of fintech companies out there. When it comes to choosing the right one with the best payment API, look for all the markers – the latest technology, the most relevant experience and the best people there to support you.
At Praxis Tech, we’re proud to tick all those boxes and our customers know they can rely on our payment API to boost their business forward.