The benefits of API for mobile payments

API is an application programming interface - a set of routines, protocols, and tools for building software applications. In "real life", you see API in action through companies like Uber, airbnb, and Spotify.

This payment method revolutionizes the current offline multi-party model; the old model involves a consumer paying a merchant using their card or mobile device, then the payment has to go through the consumer's bank, payment processor/card network, the merchant's bank, and eventually that payment is sent to the merchant. If that seems like a lot of steps, you're right! And then think about the fact that at each of these steps, there is the potential for fees.

We want to present a new model, an "API-fied" model. When you use API for payments, there are only three steps: Merchant -> consumer -> bank. It's really that simple. And it's new; don't let the current "mobile wallets" confuse you. While they package themselves as a revolutionary payment method, they really are just the old, multi-step method rewrapped with a shiny new logo.

So what exactly do API payments do? Well, using the API model, you turn every point of sale, every brick and mortar store, into an ecommerce site.

Currently, this new model is being implemented in the Nordic region. Right now there are over 30,000 locations using this method; the API model can support so many locations because it can integrate over 100 point of sale models - it's universal!

So why should you switch to an API payment model? Well, remember all those steps that the current model involves? Using an API model and cutting out all the middlemen, you can see a 50% or more reduction in fees. In addition, your customers will benefit from the ease of use with this new system. API payments can be made with any smartphone, and can seamlessly integrate with any point of sale equipment. 

If these benefits pique your interest and you'd like to learn more, or if you'd like to know how to integrate API payments into your business model, please contact us at Netclearance. API technology is our specialty, so let us bring you into the future of mobile payments.