APIs And Technology Is The Way Forward For The Fintech Industry
“The only constant in the technology industry is change.” — Marc Benioff.
Growing faster than any other industry, fintech is evolving at an unstoppable pace.
Do you know what that means for your business?
It means if you do not follow the trends of this fast-paced industry, you will be left behind. Slowly and painfully, you will be watching your customers one by one turning to your competitors.
With consumers and merchants being more demanding than ever, payment service providers are bound to develop solutions that empower the fintech world.
The solution needed in this scenario is an environment that balances APIs and technology to create a complex underlying structure with a simple presentation.
Application Program Interfaces(APIs), when combined with the appropriate technology, must have all the necessary tools and controls merchants need:
- APIs that are easy-to-use and tailored to the consumer’s needs.
- Technologies that pioneer the future and re-write history.
- More functional, more efficient and more powerful capacities.
- Innovative mechanics that shape the future of how we process payments.
Life-changing APIs and technologies that’ll make the merchant and customer relationship a happy, long-term marriage.
In this article, we’ll explore the importance of having a powerful API and why the way forward for the fintech industry is investing in technology.
You’ll also have a better understanding of what determines the leaders in the industry and what the followers.
The Role Of APIs
Application Program Interfaces exist to make our lives easier.
The interface of any platform is what makes it usable. You do not want your customers to be professional programmers to work through the API you have. Have you ever used YouTube? It’s intuitive, and its interface simplified to the point where your 2-year old or even your grandmother can use it.
If the interface is not easy-to-use and there’s no efficiency in terms of functionality, then it complicates our experience. Interfaces must be clear cut and straight to the point for both ends.
All in all, APIs improve the merchants’ control over the payments they receive and in turn, make the consumer’s side easy to use.
An improved API means that both sides (merchant and consumer) have the comforts they need. That means having an interface that’ll help business owners oversee the transaction happening from anywhere comfortably. A trustworthy interface for the consumer is a place where they can add their credentials within a few seconds without hesitating. Without them having to re-think their decision and then end up putting their credit card aside.
The API is responsible for creating a flawless process. For consumers to complete the purchase without doubting themselves or the decision they are about to make; and when they complete the purchase, to feel that they did the right thing to trust your business.
Online vendors’ needs grew ferociously in this past couple of years. Having a jaw-dropping API that provides all the necessary tools isn’t easy to find.
But then again, why compromise for less?
APIs must provide at least these core functionalities:
- To maintain customer lists with detailed data.
- To enable merchants to integrate the payment alternatives their customers most commonly use.
- To allow them to accept and manage various products and business models.
Unlocking the real power of your online business lies in how much control you have over your customers’ transactions.
To have control over every transaction while at the same time, have the ease of automation. You don’t want to be continually checking your merchant accounts to see if every single payment went through. At the same time, you don’t want to miss out on a fraudulent transaction.
Maintaining this balance solely depends on the payment processor’s technology, which we’ll discuss a bit later.
While focusing on the b2b side of it, lots of PSPs forget the consumer’s side. If they do not like or they cannot find their way around your site and/or interface, you’ll end up with unsatisfied customers that leave bad reviews all over the place.
Unsatisfied customers lead to an unsuccessful business. A business with traffic but no conversions. A brutal conclusion for any business.
Consumers are bombarded with tons of information and complex interfaces. Want to keep them glued to your online business for a lifetime? Keep your sales funnel clear.
From start to finish. Up to the point when your customers are about to enter their credit card details and complete their purchase.
Keep it pure, straight to the point and most importantly, effortless.
The Role Of Technology
Technology is constantly evolving. Change is inevitable; nothing ever stays the same.
Throughout the 21st century, in all industries, technology is evolving at a mind-blowing pace. Everyone is struggling to keep up, yet everyone needs something extra from it.
Having to deal with demanding consumers and competitive industries, companies have to keep their technology updated and in constant development.
What the technology of a payment processor refers to, is the mechanics the processor uses. Depending on the services they offer, the technology may differ. But generally talking only a handful out of the whole industry are true pioneers.
For example, during the 90s, when people thought money transfers could never go beyond their bank accounts, PayPal created a new era. The era where online payments were not limited to bank transfers.
Fast forward to 2019, and we are facing a more complex problem. We are in desperate need of innovative technologies that’ll make our payments more efficient. Technologies that compliment the User Interface and enhance the User Experience.
The way the UI/UX operates depends on the technology used. How fast the API loads and how effective it is, relies on the technology as well.
You expect your payment processor to provide your customers with a world-class experience and an even more seamless environment for you to handle transactions. What you need is technology that never stays behind and continuously strengthens the foundation of your business.
If the technology used by your payment processor is not cutting edge, you’ll undoubtedly end up losing clients. How can you accept brand-new customers when everything about the way you handle your transactions is outdated?
Payment processors need to be updated not only in terms of their functionalities but as well as being compliant with new governmental regulations/restrictions.
You need a payment processor that looks after you. One that is at the forefront of technology, and at the same time, stays ironclad.
The Way Forward
Technology and APIs are, without a doubt, the most crucial features of the fintech industry. After all, these two are the core pillars of the industry.
Fintech is the birth-child of two other colossal industries. The financial and the technology industry. If the fintech industry does not follow the trends of its creators, how could it ever thrive?
APIs are supposed to make everything simple and clear. Three things to keep in mind when selecting an API:
- Must be practical to use for both consumers and merchants.
- Must be up to date with the fintech trends and consumer’s needs.
- Must have a breath-taking presentation for both sides.
Technology is here to make things better, smoother, and faster for everyone. To achieve these three elements, here are some things you need to look out for:
- Technologies that give the user a smooth experience with no delays.
- Must be able to handle the needs of both ends and to be constantly upgraded.
- Be continuously compliant with sensitive data transfer laws and regulations.
With CentroBill, you have the opportunity to partner with one of the few pioneers of the fintech industry. We provide you with the world-class APIs you need. We give you the technology your online business craves for.
With us, you have the opportunity to see how a leader of the industry operates.
