For enterprising software developers, opportunities exist to serve almost any area of business. You can design software targeted to a particular industry, a specific niche, or even an individual company. The more specialized you get, though, the smaller your window to success becomes. By building a payment application programming interface (API) into your software offerings, you can provide a process that every company needs, both simplifying your customers' operations and building your own bottom line.
Defining the Opportunity
According to McKinsey, APIs already impact over a trillion dollars in global profits. A payment API helps your customers by connecting their payment processing functions to their other business functions. You can design an interface that not only takes payments but delivers the data for finance, inventory, payroll, and any other related areas. The interface streamlines systems and improves efficiency across a company that uses it.
For developers, this unlocks two paths to greater revenue. The first is simply broadening what you can offer companies. Payment APIs create connections, giving your customers a reason to do more with your software. It makes a foothold for you to sell more. Any functions your software can address make more sense to a customer who uses your processing application.
Second, processing payments brings its own revenue stream. Every electronic payment your system provides generates fees that come back as profits after you sell the software. Your payment API, rather than bringing you money only when you sell it, can generate residual income for as long as the software remains in use.
Focus on APIs for Business Growth
The payment API you develop represents more than just a benefit for you, though. The customers you serve are always looking for ways to become more efficient, to get more out of their own investments. One simple place to look is the array of software they purchase. A business that runs payment systems separate from its other internal systems usually pays more than it would than by buying integrated functions. The up-front cost of separating everything out can become unpalatable.
Even after the initial investment, different software can clash. A payment API that you build into the software you provide for your customers already has those bugs worked out before you sell it. You save customers’ headaches—and IT dollars—by building the system in.
Ultimately, the best way to build your revenue over time is to offer your customers something they want and need. Every business needs to process sales to continue its existence. As a software developer, you can create payment API solutions that deliver this in a way that makes customers' lives easier and your own business more profitable in the meantime. It's the reason you are in business, and it gives a win to everyone involved.