Oren Michels, CEO, Mashery

When PayPal released its PayPal X API two years ago, it became the first global payment service open to third-party developers. A startup called Payvment immediately marketed a free virtual cart that let online shoppers buy products at a series of web sites, including Facebook, and then pay for everything during a single checkout. By now, Google and payment companies of all types offer outside developers secure plug-and-play payment solutions that can be embedded in whatever they’re creating. Why should banks care? Companies don’t need to take a cut on transactions to get an ROI.  APIs offer an unprecedented opportunity to expand a company’s relationships with customers because they make it easy to deploy content and services in new, ultra-relevant contexts. Those can include a bank’s own branded apps, integrations with strategic partners, and co-branded apps built by external developers. But launching an API means opening new channels of digital distribution. And like offline distributors, you’ll be expected to deliver the goods quickly and reliably. Get acquainted with the details here:

• Accelerate deployment of digital solutions and services, including payments
• Develop new partnerships
• Build brand presence in emerging distribution channels (e.g., social media)
• Create competitive and differentiated products with low cost of ownership
• Leverage decentralized or global innovation, not just your own financial institution's finite, internal R&D team