What is an embedded finance API?

Our thinking on embedded finance

Posted on 18th August 2022

Getting to the bottom of the famous embedded finance API. What is it and what can you do with it?

What-is-an-embedded-finance-API

We’ve written about embedded finance. We’ve written about APIs. Now, it’s time to bring the two together. 

An embedded finance API opens thousands of doors for your business, in a way which creates minimal additional work for your business. So, what are they? 

Defining an embedded finance API 

An embedded finance API is the interface that allows your business to ‘communicate’ with an embedded finance provider. It’s this connection that gives your business easy access to banking-as-a-service, without having to obtain licences or build the infrastructure yourself. 

Using an API integration is a quick and simple way for your business to access these services (from payments and banking to insurance and lending). It is designed to integrate easily with your existing technology stack, in order to minimise developer work. The time and tech input required will vary depending on the provider, your developer resources and the complexity of the project, but integration simplicity is always one of the key objectives. 

What can I do with an embedded finance API? 

How long have you got? Embedded finance gives you the opportunity to offer any financial service within your product ecosystem. Payments, accounts, FX - the options available are vast. 

We can’t speak for others, so we thought we’d provide some information as to what you can do with OpenPayd’s API. Below are just a few of the API calls that you can perform using our API, as well as some examples of how this can enhance your offering. You can also test these features yourself, just head over to the sandbox section on our website. 

Create an account 

If it would benefit your business for your customers to be able to hold funds in a virtual account, then the account creation API call is what you need. When you initiate the call, you can select which currency funds will be held in and even assign multiple accounts to the same customer, giving them multi-currency capacity

You can create accounts individually or in batches, with no upper limit. This all occurs in real-time so your onboarding process isn’t slowed down, regardless of the number of accounts you need. 

Create a beneficiary 

You have accounts set up, but now your users need to make payments. This is where beneficiaries come in. They signify a party that will receive funds from an account on your platform - an external bank, for example. 

From FX and remittance services to crypto exchanges, there are countless services which need to allow funds to move from their platform to a receiving bank account. Creating beneficiaries allows that to happen with one API call. 

Create a payout 

The final step in this particular journey through our API features. With this API call, you can initiate a payout from an account (or multiple accounts) to an external bank. You can schedule payouts to be made at a certain point or of course allow customers to initiate it themselves. 

Your customers have an account in which they can receive funds and transact with, they have beneficiaries they can send funds to, and those funds can now be paid out in a variety of ways. 

Of course, OpenPayd’s API enables your business to do far more; this is just a sneak peek at what a series of embedded finance API calls might look like on an average day. 

The technical stuff

We don’t want to go too far into the nuts and bolts of our payments infrastructure, but we do think it’s important to be transparent. You can view our full API docs here and experiment with how features work in our Sandbox testing environment

Any other questions you have, don’t be afraid to get in touch! We’re always here to answer any questions you, or your tech team, may have.

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