What is a payments API?

Emily Johnson -

APIs (Application Programming Interface) help businesses, banks, financial institutions and platforms scale their payment capabilities faster, streamline operational processes and, ultimately, boost revenue.

A payment API operates to integrate a payment solution with another, existing application, for example a customer being able to checkout online without being redirected to a different page.

How do payment APIs work

Payment APIs usually sit between an application and a web sever. An API call made by the user instructs the program to perform and action, after which the application makes an API request to the web server.

Source: SDK.finance

Payment APIs play a central role in payments orchestration by bringing together merchants and payment service provider (PSPs) options. According to a report by PYMNTS, 'eighty-three percent of businesses see APIs as critical to their strategies next year and beyond'.

What are Payment APIs used for

  • Tap customers in new markets without having to established banking relationships in each new jurisdiction
  • Access real-time data on payment tracking and information
  • Improve checkout experiences by providing localised options for each market
  • Enable instant settlement, reduce transaction risk and improve business efficiency for merchants
  • Improve security and protect against fraud with robust payment authentication and automatic compliance checks
  • Reduce compliance burdens with automation
  • Prevent failed payments by avoiding manual data entry

What are the benefits of payment APIs

Good payment APIs allow businesses to be more efficient and innovative. The 'plug-and-play' nature of APIs means that businesses do not need to waste time creating their own payments infrastructure from scratch. Instead, they can use that time and resources to focus on developing new products or launching in different markets.

The scalable, flexible nature of payment APIs makes them useful tools for businesses looking to streamline operations. By supporting both single and recurring bulk payments APIs remove all manual intervention from the process, speeding up the reconciliation process and allowing for better payments tracking as well as real-time reporting.

APIs give businesses direct access to native payments infrastructure, which keeps transaction costs and transfer fees low. Transfer speeds are quicker and built-in security checks make payments done via APIs safer and more secure. Payment APIs help boost customer satisfaction while delivering a superior business payments process.

'83% of businesses consider APIs critical to their strategies next year and beyond'

Flash Payments payments API

Flash Payments API is designed to support businesses with all their Australian banking needs. Integration is simple, our documentation is clear and we provide a robust testing environment.

Here are some of the functions that customers can access with the Flash Payments API:

  • Instant local Australian deposit (pay-in)
  • Local Australian withdrawal (pay-out)
  • Send or receive money internationally (FX)
  • Create virtual master and sub-accounts for your clients for collection