APIs prove their value in expanding overseas

Thanks to ever better digital services and the siren song of new customers in foreign markets, companies still face cross-border payment problems, for which remedies now exist.

PYMNTS ‘report “The New Instant Enterprise: How Borderless Financial Services Power eCommerce Innovation,” a USEND collaboration, explores how businesses and SMEs benefit from agile API solutions that remove the friction of international commerce.

See also: Instant New Business: How Borderless Financial Services Drive Innovation in Ecommerce

“Companies in developing countries that trade across borders, especially those with volatile currencies, often face the high opportunity cost of holding all of their funds and operations in local currency,” the report said. “Business owners in developing economies face many challenges at every stage of their business growth when it comes to their most critical operation: managing payments. “

Increasingly, the answer lies in adopting a “risk-based approach when choosing a method of authenticating a user or a merchant.” Access to a payment services platform or solution that uses a lot of contextual data to approve every payment or user or merchant use case is essential for e-commerce businesses who want to avoid fakes. refusal or unnecessarily flagged suppliers.

Risk assessments and relevant data

Among the most popular and effective methods of removing cross-border payment bottlenecks is the use of application programming interfaces (APIs), which connect disparate systems with essential digital speed and accuracy. to the growth of e-commerce operations.

According to the report, “An API-based solution allows businesses to ‘outsource’ the most complex payment elements to a payment service expert in authentication and payment processing. Using an API payment option, ecommerce businesses can enable customers to pay or receive refunds in local currency directly in apps or through their websites.

In regions “where the value of currencies can fluctuate frequently and where consumers may find it difficult to assess e-commerce prices and maximize their purchasing power using traditional bank or credit cards”, the API approach is particularly useful for online operations.

This also extends to transaction security and AML / KYC compliance. As the report states, “Risk assessments must be carried out taking into account the context and the relevant data. A secure, regulatory-compliant API-based solution can help new and established businesses build and maintain a fast-to-market strategy by eliminating user authentication and payment bottlenecks. Automating user authentication and payments through an API means apps, platforms, and websites can support great user experiences at scale.

See also: Instant New Business: How Borderless Financial Services Drive Innovation in Ecommerce

Partnership for cross-border success

Established and emerging e-commerce businesses face similar obstacles not only in clearing payments from abroad in the currencies and methods of their choice, but also in complying with the tangle of cross-border payment regulations that have regional and other nuances.

Teaming up with a payment service provider (PSP) who has the technology and the experience can make it much easier to move money across borders, as many are discovering.

According to the new report, “An API-based solution enables rapid e-commerce growth through rapid integration and secure transaction management. The right PSP will allow e-commerce companies and marketplaces to easily send and receive payments to and from customers and merchants in developing countries. KYC and KYB compliant PSPs handle the intricacies of global regulatory compliance for their clients, making it easy for US-based entities to do business with clients and merchants in developing countries.

This is as true for businesses expanding outside of the United States as it is for those moving to the United States for new customers and major market potential. But problems arise when companies do not have a bank account in the United States, for example. Brazil is an excellent example of overcoming these obstacles.

As The New Instant Enterprise notes, “The potential delays in opening a US bank account can last for months, if opening such an account is possible. A European entrepreneur could attempt to sell goods from Brazil to Europe and the United States online, but the complexity of local currency fluctuations, regional delays in setting up accounts, and differing compliance with KYB and KYC regulations can stop completely the effort.

Again, the report concludes that “choosing the right payment management solution is essential for managing compliance, data security and a high quality customer experience.”

See also: Instant New Business: How Borderless Financial Services Drive Innovation in Ecommerce



On: Eighty percent of consumers want to use non-traditional payment options like self-service, but only 35 percent were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a PYMNTS and Toshiba Collaboration, analyzes more than 2,500 responses to find out how merchants can address availability and perception issues to meet demand for self-service kiosks.

About Anne Wurtsbach

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