Financial services and fintech companies are constantly evolving and looking for ways to provide better services for their customers and themselves. This often boils down to deciding between creating code and building a payment app or buying one already made and customizing it.
When it comes to a payment app, should you build or buy?
Read on to learn more.
Capitalizing on FinTech Advancement
Fintech companies are taking on new challenges in the digital economy, which has expanded to include innovations like financial automation and (quite simply) ACH APIs.
In order to stay relevant and afloat in their industry, more businesses must consider how to adopt new technologies. Since so many different businesses offer a mobile app, any brand wishing to make sales might start looking into app development for payment processes.
Payment processing apps provide a more secure way for customers to bank, send a receive money, automate money, invest, and borrow (among others). Mobile payment apps have impacted businesses in many ways. Apps make it easy and convenient to shop, keep track of your finances, and even make payments on your phone. Using apps is convenient, as they allow you to purchase items or services in a quicker, smarter way.
Payment apps have expanded dramatically in recent years. They are customizable, scalable, and convenient. Customers have access to an extensive range of payment methods, while merchants operate through their websites and more easily collect funds from multiple types of transactions.
How Payments Apps Can Help
Payment apps have been gaining popularity for some time, as more and more people embrace the connectivity to their finances and the chance to be more financially informed.
What are their use cases? Cashless payments through mobile devices have become ubiquitous. Some financial services companies have been using apps to offer payment solutions for different segments.
Some of the ways they can be used include the following:
- Make purchases online
- Pay a bill
- Money transfer
- International transfers
- Send money
- Manage a credit card or bank account
- Secure loans and other lending products
- Store money
- Access financial advice.
Building a Payment App
Building your payment app can have many benefits, as listed below:
Total Control Over Your Branding
Your customers are interested in your brand as long as you provide value, and the more value you offer, the more they engage with your company. When you build your own app, you should ensure that it is branded appropriately to succeed.
One of the benefits of building your own app is that you have complete control over the visual design. You also benefit from developing the user experience (UX).
Developing an app allows you to design everything from the user interface to visual design and more without relying on a developer. This allows for a uniform and consistent experience that follows industry standards. Consistency is critical to making the customer experience easier and more efficient. It also means that you can offer unique features to make the buying experience seamless across channels and devices.
Back-end Infrastructure
For many users, using a single login identity across all their devices and web pages is convenient. They can keep track of interactions on all screens, and, in turn, this is likely to impact a company in terms of sales or improved customer experience.
However, there are some significant drawbacks to building your payment app.
App Development Cost
App development requires more capital at the start (typically) to develop the app code. You will also need to ensure your app is accessible via iOS and Android. This can take a long time, making it difficult for you to compete with other app developers who may be jumping into the market in the meantime.
It can also be costly to integrate with payment processors. Most of the information needed can be password protected and downloaded. Pre-existing payment APIs are typically user-friendly and integrate easily into a developer's website or app. They save time and effort, reducing the headaches startups have to deal with.
'Buying' a Payment App
There are many benefits to buying a payment API for your fintech app.
Buying a payment platform API from an app developer can minimize financial risk because you do not have to spend time and money developing the API and writing code to build one from scratch with your branding and intent in mind. You don't have to be a programmer or designer to create your platform. You can use their software design and build the platform on your own.
Most fintech brands know the importance of being first to market. They want to establish their brand first, focusing almost exclusively on platform development for a short period and at low costs. To provide a better user experience, online platforms need to integrate their services.
Finding the right provider you can trust who can provide you with an all-encompassing API is essential. These providers typically have the necessary knowledge and are "industry insiders." They understand coding, user experience, and use cases in finance.
API developers invest in upgrades to compete in the market in effort to offer a superior product. You'll enjoy valuable product updates and new features using a payment infrastructure as a service platform. You'll also get to keep up with iOS and Android updates, partner with product enhancements, and create reporting and insights on your platform.
Connecting your app with a payment API is an easier way to increase brand awareness and offer more options. Many payment APIs on the market are customizable and can help promote a brand and logo. They can also provide colors and products to enhance one's content. It sometimes makes sense for you to use mobile-optimized web pages and mobile-first responsive websites that are separate from the back-end of your website.
Working with a white label has many benefits, such as ensuring that login and account information is stored on a different platform. An online platform may do a tighter integration to your accounts and database for a fee.
Purchasing a payment API for your app can allow you to save time and money. You may need to hire someone else or fix things independently, but a developer will complete the requested changes promptly.
One of the most important things that any company that offers financial services must consider is compliance with Anti-Money Laundering (AML) and Know Your Business/Know Your Customer (KYB/KYC) regulations. Finding an API with a compliance integration will help ensure that your business is compliant and protect you and your customers.
Partnering with Sila
When you partner with Sila, you get access to the technology platform we have created that allows for deposits, withdrawals, and the use of a digital wallet.
Sila is an open API that helps businesses connect with the financial services they need. Technology has become even more advanced recently, making it easier for customers to find what they need without navigating through a complicated interface.
Sila's API syncs your financial data with other applications and offers built-in regulatory compliance that stays in line with laws and regulations in the United States. It also includes features to make automation seem like a breeze.
Sila has an innovative platform that can make your app ideas a reality. You can use our technology to build an app that anyone would want to use and will be eager to buy.