In my last post, I discussed the reasons innovation in B2B payments is so urgently needed—and why that innovation is going to come from new market entrants rather than established players.
Now let’s consider a related topic that is equally interesting and potentially impactful in the years ahead: What are the technology trends that are driving the much-needed innovation in payments?
Of course the advent of the mobile era is what springs to mind instantly—the incredible surge in adoption of smartphones and tablets. And indeed, more than half of the participants in the 2013 Payment Innovation Jury Report cited widespread adoption of smartphone and tablet technology as a primary driver of payments innovation.
But the second-most-cited factor may surprise you. Thirty-six percent of the Jury also sees the availability of APIs as a major trend driving innovation in payments.
Let’s take a closer look at the link between APIs and innovation. APIs—which are simply the interfaces used by software components to communicate with each other—are “payment enablers.” As APIs are extended to an ever-wider range of payment types and user devices, they open up an ever-broader array of possibilities.
What’s needed to drive payments innovation is flexible APIs that make it easier to integrate diverse payments-related features, functions, and technologies, so that more users and more companies can benefit from accelerated payments without compromising security.
In essence, flexible APIs open up new possibilities for creating business advantages, at a mere fraction of the cost of developing a proprietary system from scratch. Consider these comments from actual Jury members:
“Although still in their infancy, APIs are a huge enabler of innovation. The first APIs in payments—payment gateways for e-commerce—created a commercial revolution. The extension of APIs to other payment capabilities, such as money transmission, will have a similarly deep impact on the range of payment services worldwide.”
“APIs enable rapid connectivity of applications, switches and gateways, creating new value propositions.”
These are the reasons Traxpay has offered flexible APIs from day one. Our APIs facilitate integration of payments technology into digital marketplaces, corporate ERP systems, settlement networks, and diverse IT resources—so the benefits of accelerated, 24/7, anytime/anywhere B2B financial flows can be extended to more people and more companies.
At Traxpay, we firmly believe that payments innovation should aim to benefit the many, not the few, and that new and emerging payments technologies should be shared, not protected.
With our flexible APIs and our culture of entrepreneurial innovation, we are committed to bringing the business value of simpler, smarter payments technology to companies of all types and sizes.
In my next post, I’ll address one final compelling topic raised in the Jury Report: Where the smart money will be invested in B2B payments innovation in the next five years.