NEW REPORT: How Banks Are Driving API-First Strategies

New payment and financial technologies are quickly emerging from the FinTech community, all with the promise of expediting payments and reducing the distance between cross-border trading partners. But, because these solutions — like Bitcoin — are largely untested, many traditional banks are wary of investing in companies that operate in the space. Could APIs, which can help banks quickly assess a company’s risk level, help these FIs invest where no (or very few) players have invested before?

The latest edition of the PYMNTS.com B2B API Tracker, a FI.SPAN collaboration, examines how APIs are helping both banks and smaller businesses address their fears and embark on new ventures in new markets.

Here’s a snapshot of some recent notable B2B API news:

For many smaller merchants, fear is very much a factor when it comes to globally expanding their operations. The fear of non-payment, in particular, tends to be the smaller merchants’ worst nightmare.

Recent research indicates merchant anxiety over non-payments is widespread. According to a study by Payoneer, 75 percent of small- and medium-sized businesses (SMBs) have backed away from global trade over concerns of not getting paid for their services. To help SMBs overcome their fears and expand their global reach, Payoneer and UPS Capital have announced a new service for the latter’s SMB customers, a soluion which helps them process B2B transactions through a licensed escrow service. By offering an escrow service for SMBs, both companies are hoping to ensure merchants that the only thing they have to fear in global trade is fear itself.

Other recent API developments aim to offer professionals an efficient way to process payments and remain compliant with local regulations. In Europe, for instance, the region is preparing for the rollout of a new directive which could challenge how medical providers process invoices. In anticipation of those changes, Global Healthcare Exchange (GHX) recently unveiled a new invoicing solution that integrates with its existing platform — one the company says will help healthcare suppliers deliver compliant invoices to recipients.

For more recent notable news around the B2B API payments space, check out the September edition of the Tracker.

APIs invite innovative changes to banking

Traditional banks are seeing new FinTech players become more competitive on several fronts, including lending. And, while some established banks are investing to catch up with FinTech innovations, others are helping these startup companies disrupt the financial services industry. In the September Tracker’s feature story, PYMNTS caught up with Ben Isaacson, senior vice president and general manager of the payments division at Cross River Bank, a new player in the banking space that is active in alt-lending services. Isaacson discussed the company’s “API-first” strategy and how this approach helps Cross River find the companies and partners traditional banks typically avoid.

To read the story, download the latest Tracker.

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To download the September edition of the PYMNTS.com B2B API Tracker, fill out the form below.

About the Tracker

The PYMNTS.com B2B API Tracker, a FI.SPAN collaboration, serves as a monthly framework, providing coverage of the most recent B2B API news and trends and a provider directory highlighting the key players contributing to the B2B API ecosystem.