If you’re a PSP looking to scale and add international payment solutions or money transfers to your product set, you’ve got two options:
- Build the entire infrastructure yourself.
- Gain access to the tools you need via a partner’s API.
Building it yourself means expanding your development team and setting up banking relationships, which is costly and time-consuming.
Accessing the infrastructure through an API is often the fastest and most cost-effective way to enable cross-border payments. This makes API integration a practical path for PSPs that want to expand quickly. However, there are still important factors to consider. This article will cover:
- When does it make sense to use an API for your international money transfers?
- Should you choose a white-label platform?
- How a typical API implementation works (and what to consider when picking an API partner)
- Why IFX’s API is an ideal solution for UK-based PSPs
- How a payments provider used IFX’s API to scale
Want to unlock international payments and real-time money transfer capabilities for your platform via an API? IFX Payments can help. Book a call with us today.
When does it make sense to use an API for your international money transfers?
As a PSP aiming to support international payments, integrating with an API offers a fast, cost-effective route. Rather than spending time developing infrastructure from scratch, you can tap into an established provider’s setup and get started more quickly.
This gives you instant access to reliable global payment corridors, multi-currency support, and efficient FX services for your customers. Here are a few indications that an international money transfer API is a good fit for your business.
You’re handling cross-border payments manually
You’re already processing international payments, but you’re doing so manually. Every time a customer requests an international payment, a payment manager on your team has to manually add the sender, recipient, and payment details to complete the payment. As you scale, this becomes harder to manage. So, for greater efficiency, you want to automate these processes.
You don’t have your own banking relationships
Establishing banking relationships can take years. There are some barriers to entry that can be challenging to overcome.
It’s much easier to plug into an API from a provider that already has these relationships in place. This gives you immediate access to payment rails, exchange rates, and good conversion rates.
You lack in-house expertise
Building your own payment system takes significant technical expertise and resources. If you don’t have these in place, integrating with an API is faster, simpler, and more cost-effective.
Should you choose a white-label platform?
Sometimes when APIs are mentioned, people can think of white label solutions instead, something IFX Payments doesn’t provide. For some small entities, a white-label solution may seem appealing. It gives you an off-the-shelf interface under your brand, while the provider handles the technology, infrastructure, and compliance.
But there’s a trade-off. You’ll have limited control over the user journey and functionality. Alternatively, if your company’s goal is to craft a unique client experience, with a bespoke technology stack, you’re better off integrating a direct API into your own platform.
How a typical API implementation works (and what to consider when picking an API partner)
An API implementation should be simple and efficient. However, to ensure the process goes smoothly, it’s good to be aware of what to look out for when choosing a partner. Understanding any challenges you may have up front will avoid running into issues down the line. Here’s an example of what a good API implementation with the right partner should look like:
- You join a discovery call: This should focus on understanding your business and what kind of payment capabilities you’re trying to build. It should also go over what you want to achieve with the API, along with use cases and timelines.
- You test the API: You should receive clear API documentation and sandbox access for testing. The provider should also offer hands-on support throughout the testing phase, answering questions and helping you resolve technical issues as you go.
- You go live: Once you’ve tested the API and confirmed that it works as it should, the provider should quickly switch you over to a live environment so you can start payment processing for real.
- You receive ongoing support: Once you’re live, you should have access to dedicated support. The right provider will ensure they’re always available to provide support as needed.
What are the signs that an API partner is not a good fit?
Signs that a partner is not a good fit include experiencing delays, added costs, and disrupted operations. Here are some potential red flags to watch out for:
- You face overly long wait times to go live: Some providers require you to complete full customer onboarding before beginning integration and testing the API. After being asked for the same documentation several times due to poor internal communication or having unclear timelines or requirements, many potential users would be tempted to give up.
- You’re expected to pay to test the API: Some providers expect you to pay before you access the test environment. This adds unnecessary friction and costs before you even know if the API meets your needs.
- You face unclear error messages: Some APIs can make troubleshooting difficult by providing confusing error messages. This makes it difficult to understand what’s gone wrong or how to fix it.
- You experience high payment failure rates: Some providers take a hands-off approach. They’ll send the payment, regardless of the data you provide, and let you know if it fails, rather than collecting the required data for a payment in an industry standard ISO format. Poorly structured data shouldn’t be a reason for payment failure.
- You get stuck with slow support: Some providers can take days to get back to you. This leads to delayed notifications, financial transactions, and other platform disruptions.
Why is IFX an ideal solution for UK-based PSPs looking to support international money transfers?
IFX serves UK-based PSPs who want fast, flexible, and fully supported access to a cross-border payment infrastructure. Our clients include remittance companies, payments platforms, and FX firms.
With us, they can serve an international customer base without the hassle of building their own payment system from scratch or establishing direct relationships with banks. Here’s how you’ll benefit from partnering with us:
Plug into an established banking infrastructure without having to build from scratch
If establishing access to cross-border payment rails is currently out of reach, IFX may be a good fit. With us, you can offer your customers access to different currencies, major global payment corridors, and reliable, cost-effective FX through our international transfer API.
With over 20 years of experience in payments we also ensure that businesses such as PSPs receive dedicated support to help them simplify overseas payments.
Thanks to our working relationship with key financial institutions, you can access trusted routing networks and payment rails like SWIFT, SEPA, and FPS. And you can send mass payouts in 70 currencies and receive and hold funds in 46, as soon as you open an account with us.
We also offer you FX pricing that’s often more competitive than a bank. This helps you save and offer more competitive rates to your customers.
Set up international transfers in three easy steps
Every day you’re not live can potentially mean thousands in lost revenue. That’s why we keep onboarding simple. Our three-step process involves a discovery call, sandbox access for testing, and once everything checks out, go-live. We don’t require you to be fully onboarded to begin integration, and there are no upfront fees, allowing you to launch cross-border transactions for your customers faster.
Avoid failed payments with upfront validations and clear error messaging
Failed payments are frustrating for customers and a danger to your reputation. To ensure as many payments go through as smoothly as possible, we validate the data input upfront to ensure global data standards are being met. This helps to reduce the risk of failed financial transactions.
While other systems typically return vague error messages, we ensure our notifications are clear so you know exactly how to fix any issues. If you’re still not sure, you can always pick up the phone.
Get hands-on support from implementation and beyond
When you’re dealing with API key generation, endpoints, or technical workflows, slow support can lead to even more problems. That’s why we take a different approach. As a service-led provider with a 4.5-star rating on TrustPilot, we’re with you every step of the way.
You’ll get an extensive documentation library to help you use the API and our dedicated team are constantly testing and optimising the product. We’ll keep you updated with any changes. Whether you’re scaling mass payments, or enhancing your payment platform, we’ve got your back.
When you have questions or concerns, we respond in hours, not days. That way, issues are resolved quickly and your payments continue to flow smoothly.
How this payments provider used IFX API to scale to millions of international transfers
The business approached us because it was building a payment service platform and wanted to use our API to support its payments and foreign exchange. It was among the first to review and adopt our API.
Since then, the company has scaled to large payment volumes, most of which are processed via the IFX API, allowing it to receive funds in USD, convert to GBP, and send money seamlessly.
Throughout the partnership, we’ve provided consistent, hands-on support from multiple teams, including account management, implementation, and operations, to help with technical integrations and ongoing back-office queries.
With our international money transfer API, the provider is able to access the capabilities it needs to serve its clients and scale fast.
International money transfer API: Choose a service-led strategic partner
For PSPs looking to scale quickly and offer international payment services without the heavy lift of building infrastructure from scratch, integrating with a third-party API is an efficient and cost-effective option. It especially makes sense if:
- You’re manually handling cross-border payments.
- You don’t have the time or resources to establish your own banking relationships.
- You don’t have the internal expertise to build your own solution.
But different providers will have different offerings and service levels. When choosing a partner, look for one that offers efficient implementation, a market-leading platform, and hands-on support. In this way, you can be confident that you’ll be able to:
- Keep manual processes to a minimum
- Offer reliable, scalable payment options that grow with your business.
The contents of this article do not constitute financial advice and are provided for general information purposes only. Links to third-party websites are included for convenience only, and IFX Payments holds no responsibility for the content, services, products, or materials on those sites.
All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary, and customers agree to proceed at their own risk.