How a Single API Can Be a Game Changer for SMB Payments
For international merchants looking to set up a marketplace or bill customers on a recurring basis, managing multiple integrations, back offices, and datasets from various payment providers can be daunting.
This pain point, according to Ran Cohen, co-founder and CEO of BridgerPay, has become much more relevant today, especially for small and medium-sized businesses (SMBs) that cannot afford to go through the costly and time-consuming steps. process of connecting to multiple payment providers when entering new markets.
To solve this problem and help businesses optimize the payment experience, the Cyprus-based Israeli payment processor has launched a fully integrated self-integration platform that allows businesses to easily and instantly connect to any any provider or payment method in the world through a single application programming interface. (APIs).
“We made it so that in seconds any business could connect our product to their website with a simple plug-in and then easily connect to the payment provider. [of their choice],” Cohen told PYMNTS in an interview.
Instead of logging into one of the hundreds of out-of-the-box connections, merchants can choose to create their own in seconds and set custom routes and rules for each country or region they operate in using the company’s proprietary technology.
“Ultimately, businesses want to have a very transparent and clean picture of their operations, the amount of processes they are processing and their approval rates and determine which payment provider best suits their needs,” added Cohen.
To help customers protect their virtual presence from increasing cyber attacks, he said fraud detectors are being used to verify payment providers who are also connected to 3D Secure 2 (3DS2), an authentication protocol for online card payments.
Today, the platform connects to over 500 payment service providers (PSPs), including AfterPay, checkout.com, PayPal and Stripe, providing alternative payment methods (APM), credit cards and cryptocurrency payments to customers across multiple industries like e-commerce, gaming, travel. and Financial Services.
Emerging Markets Struggle
According to Cohen, although the demand for the product is widespread around the world – mainly from the United States and Australia – it cannot always meet the needs of traders in emerging markets such as the Middle East, Africa and Latin America.
This is primarily due to the difficulty of finding technology-focused acquirers who can provide the APIs BridgerPay needs for these connections.
“You don’t have a lot of options or acquirers who can service customers who want to sell overseas in those regions. For example, if you are a Nigerian merchant and want to transact [payments] in Nigeria that’s great, but if you want to process in Europe, that’s where the problem starts,” Cohen explained.
In such cases, he said businesses should find a payment provider that can fill that void and disburse funds to their local Nigerian account, where most merchants in developing regions struggle the most.
See also: Early-stage FinTech, crypto investments are key to a new financial ecosystem in emerging markets
BridgerPay does not have all the answers, he pointed out, although the Israeli FinTech company is working to expand and connect to more PSPs to find more and more matches for merchants in these regions.
“[We are trying to] find solutions that will not only allow [merchants] scale, but get them to a position where they have enough customer base data to go and invest in building their businesses,” he said.
Democratization of data
According to Cohen, one of the emerging payment trends is the democratization and transparency of data, which together help merchants make informed, data-driven decisions when deciding which payment provider to work with.
For example, most people consider Stripe to be one of the top payment providers, but their approval rating might be low in South Africa, he noted, which is why merchants need to have the data. on performance before choosing a partner payment provider.
BridgerPay, a platform agnostic, focuses less on where transactions take place and more on approving transactions.
And if a client were to ask which provider is the best in Japan, for example, Cohen said they should be able to retrieve that data from the millions and millions of transactions that pass through the platform daily.
“I think this knowledge belongs to people and not to companies like us or payment providers. This democratization of data is a trend I see beginning soon,” he added.
Register here for daily updates on all of PYMNTS’ Europe, Middle East and Africa (EMEA) coverage.