Do APIs need to be integrated into payment systems?
We are a Payments Initiation Service Provider (PISP) startup based in the UK and what we do is access users' banks (with their consent and authentication) and get their bank to send money to another bank account. Still, we never hold money in the app, we only are interested in transferring money.
My question was do we still need to integrate an external API such as Stripe or PayPal into our software? Or can custom software be built without integrating a 3rd party API? From what I gather APIs are needed whenever a company holds or processes bank details/information but we won't be, we simply get their bank to transfer the money for them.
It would be much appreciated to get some advice. Thanks
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Most of the banks have APIs for open banking which you can use for your use case. The authentication mechanism you need to look for is "Oauth" in which the user is presented with a consent screen to allow your app to access their account details. Once they give permission to your app, you can use APIs such as check balance, Transfer payment etc. Please feel free to reach out if you want to know more details at www.linkedin.com/in/nabilrehman
first, this is not the place for this post
second, you will need the bank agreement and API interface in order to gain access to the user details, balance and execute functions, unless you expected customers to be stupid enough to enter their bank login details in your app. no amount of 3th party API will help you to do that.
Stripe and PayPal can help you process credit cards and send receive money in theyr platforms