Open APIs: Unlocking Innovation in Digital Finance
Many products and services as we know them, such as Facebook, would not be possible without something that few people have heard of: application programming interfaces (APIs). Open APIs are contracts that make it possible for different companies' software programs to interact with each other.
This blog series explores how digital payment providers can unlock innovation in the digital finance ecosystem by selling open APIs to third-parties, empowering these companies to create new products and services that benefit providers, third-parties, and low-income customers alike.
POSTS IN THIS SERIES
Is “going open” worth the risk for payment providers? A money transfer business in India shares how allowing other companies to deliver financial services based on its systems has fueled its recent growth.
Open APIs have potential to spur innovation in digital finance and grow business for payment providers. But to realize these benefits, providers must design open APIs that meet the needs of the developers who use them.
From Twitter to Walgreens, companies across diverse industries have seen their businesses grow after deciding to share their online services with external firms. Does a similar strategy make sense for digital payments providers too?
What are "Open APIs" and why do they matter for financial inclusion? CGAP is looking at open APIs as an enabler of increased innovation in digital financial services. Here's what digital payments providers need to know.