APIs The key to FinTech’s success in money mobility

Consumers have grown to expect seamless and innovative payment experiences, and FinTechs delivers. But they also face competition as financial institutions (FIs) and even device manufacturers like Apple innovate how consumers can send and receive money. To remain competitive, FinTechs must develop an innovation strategy with application programming interfaces (APIs) to strengthen money mobility.

“The Money Mobility Playbook: An API-based innovation guide for FinTechs,”A PYMNTS and No money explores how FinTechs can use money mobility innovation APIs – so they can provide customers and consumers with new, secure ways to move money in and out of their financial accounts seamlessly. The Handbook examines how FinTechs can choose the right API and technology solution platform to support payment and payment innovation globally using any currency or device.

Defining money mobility: The seamless “all for everyone” payment

Money mobility is theoretically simple – the ability of a consumer or organization to move money to or from any account, using any connected device, currency or payment method. Achieving cash mobility, however, requires access to cash mobility networks – those of FIs, FinTechs and other payment service providers – that are connected and able to speed up transactions securely and efficiently at any time, on a large scale.

FinTechs has often led these innovations, helping businesses and consumers gain money mobility through their products, and FinTech’s ability to remove friction from transactions is the key to their mass appeal. The ability to offer all-to-what inflows and outflows is crucial for FinTechs seeking to engage and retain consumers and businesses accustomed to fast, seamless payments and payouts.

How FinTechs leverages APIs to speed up innovation in money mobility

Used as a channel for the benefits of a money mobility network, an API can allow FinTechs to give clients and their customers access to powerful money mobility features. While the “wow” factor may appeal to consumers looking for easier ways to manage their money, real money mobility is based on much more than quick and easy transaction management; it requires a comprehensive, compliant and globally available technology stack that handles all aspects of payment processing and compliance.

Often, the easiest way for FinTechs to deliver the benefits of a money mobility network is to use an API, according to the report. An API delivered through a money mobility network allows FinTechs to easily connect their product or service to offer customers a range of features that the network offers, even though FinTech has not yet developed a mature technology stack.

Using an API from the right partner, FinTechs effectively has access to money mobility in a box: the ability to provide all-to-all payments and withdrawals to clients while reaping the benefits of advanced fraud and compliance tools.

APIs make Secure Money Mobility a “Plug-and-Play” feature

Although innovation often comes with risk, a money mobility network allows access via APIs FinTechs take advantage of the network’s ability to reduce risk using advanced technology. The most sophisticated APIs for money mobility use powerful data networks that leverage rich historical data, optimizing speed and accuracy to identify bad players and potentially fraudulent transactions.

A networked API for money mobility not only makes it easier for FinTechs to identify risks, but also helps them scale their business. As a FinTech audience grows rapidly, developers can take advantage of broader opportunities to create new products that are compatible, scalable, and customizable from day one. It saves FinTech’s time and resources during development and rollout, while ensuring that new products are built on a technological basis that is not limited by developers’ ability to reinvent a product as an audience grows.

Learn more about how FinTechs can leverage money mobility by downloading playbook.