Financial transactions are increasingly dynamic and bulky. As the currency in circulation grows, the need for payment platforms to become safer, more robust, and integrated, also increases. To this end, payment APIs emerge as necessary interfaces for expediting and certifying payment processes. Shall we understand a little more about what a payment API is?

But first, what is an API?

API is the acronym for Application Programming Interface. It is a set of routines, protocols, and tools that allow companies and developers to integrate their services with third-party applications.  

Great APIs should be able to handle a large volume of transactions, have layers of protection that recognize attempted attacks and block access, and ensure user authentication. 

User authentication can be done through username and password, integration tokens, and access restriction by IP or VPN.

Today the world is full of APIs, and they are the new standard for system integration. Companies like Google, Facebook, Waze, and IFood use APIs to integrate with partners or mobile applications.

And what is a payment API?

The primary purpose of a payment API is to ensure that the processing of information for data collection or payment execution is safe and fast. Great payment APIs need to ensure that duplicate data will never be accepted. One technique that has gained many supporters is idempotency. When applied, idempotency ensures that for the same request, the exact data is returned. So, when used correctly, a duplicate payment can never be registered.

A payment API must also contain webhooks. With them, you can notify the system integrated into the API about all updates during the life cycle of payment. Thus, it is not necessary to consult a system to find out the status of a certain payment.

With the APIs, each company can focus on its business and integrate with partners to use services that add functionality to their products or services. For example, an online store does not need to know how the payment capture process works.

For this, it can integrate its service to a specialized company and continue to maintain its focus on sales. Cross-border transactions can also benefit a lot from this since each country has its own standards for payment execution and collection. In this case, having an API that validates this data can avoid the money having to be returned.     

How does it work?

Shall we look at examples of what a payment API is?

  • Credit card payment gateway: the buyer enters the credit card details into the payment interface linked to the marketplace. The data is encrypted and forwarded to the gateway, which sends it to the card brand and to the bank, which confirms the transaction. This is a useful tool for companies that process payments in e-commerce. Without it, these transactions would possibly not be possible.
  •  Payment Institutions: in this case, the API acts in another bottleneck of companies, the management of payments. If, on the one hand, it is easier to buy and sell online, on the other hand, organizing transfers, slips, and payments to different suppliers, and still manage to organize and analyze all these costs later, is a complex task when there is no help of a platform specialized in mass payments. As previously mentioned, the integration with a specialized company brings agility, eliminating risks of duplicate payments or errors during the manual data input.

Less payment management. More company management

If the entrepreneur's routine is to manage payments, who runs the company?

Allowing the manager to channel his efforts into growing his business is one of WePayOut's priorities. Because we are authorized to pay and collect on behalf of others, we make your financial management a lot easier and faster

Through our API, we synchronize all your payment information. This allows you to quickly and easily manage payments to third parties, qualify bank details, generate payment history, customize payment receipts with real-time status updates.

 Monitoring the process via Dashboard

As we know, financial management and control are not just about paying. But also in creating possibilities to analyze payment data, suppliers, and identify trends to use the data to make your business more efficient. So, even with API integration, we also provide access to our dashboard. It has graphs, notifications, and reports with filters and data export, allowing analysis of processing and identifying trends. Therefore, operators can determine precisely how your payment flow is.

Do you want to learn more about us? Read more: Stop taking risks. We take care of payments to third parties!