Payment API: what it is and how it works

A payment API facilitates your company’s routine and benefits customers with a wide range of payment methods. Know more!

Application Programming Interface or simply API is a set of programming rules and standards. The main function of an Application Programming Interface is to allow the integration between platforms and software. That is, the codes can be used so that two applications communicate with each other, sharing functionalities.

In this article, you will understand what payment APIs are and how they can benefit your business. Keep reading!

Payment API: solution for e-commerce and other digital businesses

APIs can also be responsible for providing a more satisfying user experience in virtual stores or when contracting digital services. With a payment API, transactions are analyzed and approved automatically, in a process that takes place in real time and takes just a few seconds. 

Security is another strength of payment APIs. All data provided by the customer at the time of checkout – such as credit card numbers, for example – is encrypted and is not available for access. Communication with the acquirer takes place immediately. The acquirer, in turn, communicates with the client’s bank and returns the result determined by the bank to the API. Without anyone having to intervene, the customer’s card details are verified, as well as their credit limit.

The consumer does not need to leave the e-commerce environment at any time. On the same screen where the customer entered their data, they will receive a message informing the purchase status.

Payments via API can also be made using other methods besides credit cards. In the case of debit cards, there is an authentication step with the card company. Bank transfers and bank payment slips are some examples.

Making the payment process fluid and simple is one of the key steps to avoid cart abandonment and ensure conversion. But that’s not the only benefit the Payments API provides to your business.

What the payment API is in practice

To receive payments automatically, safely, without having to assign human labor to this operation: this is what API means on a daily basis. But it is possible to go far beyond that. 

Good APIs are able to avoid duplicate payments and notify the merchant of updates to the payment process. For example: when the payment method chosen is bank payment slip, the customer has 3 days to make the payment. The bank, in turn, takes a little longer to identify it. Only when payment is identified the product is sent to the customer, who is informed of the time for delivery of the goods. Now imagine having to check these steps for every sale made this way manually? It would be unfeasible in the day-to-day life of most companies.

Another advantage of the API in managing a company’s payments has to do with suppliers and service providers. This is because it is possible to send payments through an API in an organized and fast manner.

Cross border e-commerce: payment in any currency

Payment APIs are also the solution for receiving payments in any currency worldwide. We know that, with a virtual store, it is possible to reach consumers from any location. But it is not enough to reach them: it is necessary to provide a payment method that the customer can use to have a chance to close the transaction.

Providing the customer with a local payment experience is known to increase sales conversion rates. In addition to making payment available in local currency through bank, debit and national credit card, it is also possible to better serve the Brazilian customer by displaying the translation of product prices in real time, as well as the rates and time for delivery. This establishes a relationship of trust between customer and seller. This was the strategy adopted by AliExpress, the world’s largest e-commerce and which breaks sales records annually in Brazil.

On the other hand, retailers receive the sales amount already translated into their currency, wherever they are. Retailers also have access to a sales backlog, with intuitive reports and dashboards, where they can follow the cash flow in real time as payments are settled.

In other words: neither the retailer nor the customer needs to make an effort to find out about the exchange of one currency in relation to the other or to carry out this process personally. A payment API can fulfill this function with excellence.

Meet Bexs Pay, one of the best payment APIs in Brazil

Bexs Banco has over 30 years of experience in foreign exchange and a team of specialists always ready to provide advisory services. But that’s not all. Your digital business can also rely on APIs created by our developers. With Bexs Pay, you can sell your products and services by accepting payment methods in Brazil and receive the payment for your sales at the bank of your choice, anywhere in the world. Contact us and learn about our solutions.