It is no longer a doubt that technology has enhanced our daily lives; from medicine to travelling and finance, we now have the most convenient options for doing things at our fingertips. Take, for example, sending money; people do not have to go to banks before carrying out financial transactions.
In Africa, fintech companies have delivered products that have made financial transactions more accessible and convenient. Most of these new financial technologies rely on or are based on Application Programming Interface (API).
What is an API
An API is a connection between two computers or between computer programs. This connection means that an API serves as a software intermediary that allows two computers, computer programs or applications to talk to each other.
A practical example of an API is an app we use on our phones. The application connects to the internet and sends data to a server which takes the data, interprets it and performs the task it has been sent to do. This process is made possible by an API.
In financial transactions on the internet, APIs are responsible for the sending and receiving value. If you ever sent money through the internet or an app, you have interacted with an API.
Fintech companies build APIs that facilitate financial transactions of all sorts. Apart from just the transfer of money, APIs are also responsible for other financial transactions like online shopping, payment with a Point of Sale Machine (POS) and international money transfers.
International money transfer APIs
Unlike local financial transactions, international money transfers are always difficult. Sending or receiving money abroad can bring up several concerns, especially via the traditional methods of banking that take a lot of time and charges.
However, fintech companies have built APIs that have made it easier. These APIs can facilitate international transactions by taking data through the international payment system and delivering them to the SWIFT network.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) system is what runs most international money and security transfers.
An international money transfer API interacts with the SWIFT network, links and verifies accounts, ID and business verification before authorising the transfer.
API for your business
Using an API for international money transfers is essential for your business to keep up with the global market. Choosing an API partner like Fincra can help you scale your business by providing payment solutions to your customers.
With simple integration, you can use our APIs to launch global financial products and are ideal for businesses that make frequent payments, require flexibility, and require control over how and when funds are moved.
Fincra provides payments solutions that enable you to accept payments securely, make payouts globally and scale your business across borders.