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How API-based Technologies Can Transform the Future of Online Marketplace

Ashley Williams
July 22, 2019
6 minutes read
3779

API Based Technologies: Application Programming Interfaces (APIs) are giving advanced ways of digitizing businesses. Multiple online marketplaces are extending their services using external and internal APIs. This helps online businesses increase customer traffic by providing them better user experience. It is estimated that out of 7.7 billion global population, 1.92 billion people are digital buyers (which is increasing incredibly). The reason is the advanced API technology that is playing a key role in the online marketplace in attracting customers. There are around 224 marketplace APIs available which include internet APIs, browser APIs, and a variety of product APIs. Online businesses are going beyond basic API management to create a full-fledged API marketplace to connect the producers and consumers rapidly.

What are APIs?

APIs are a set of procedures and functions through which applications are built to access the services, data or features of a system. Today, companies avoid the installation of multiple software and their management. All they do is that they use APIs as SaaS (Software as a Service) and integrate several APIs depending upon the need of their business. Those APIs then connect the producers and consumers to provide desired services. API management on the other side is a platform that manages the APIs. It helps APIs behave evenly according to their standards and services. API management supervises all the security, speed and compliance-related policies provided to the businesses.

How does the API-based technology works?

Multiple APIs (depending on the need) are integrated with the application. The API interface runs and delivers information from the application that you are using to the system over the internet. The response from the system then comes back and delivers the data to the application. Through each step in this process, the interaction is continuous between the system and the application. APIs ensure the interaction between the services, data, applications, and systems. This data varies from cloud applications to the online marketplace, it is the responsibility of APIs to assure connectivity.
The market volume of AI-based technology is rising rapidly from the last five years…
A broad interest in enterprise-oriented technologies is seen in the past few years. These technologies include SaaS, AI, big data, IoT, and microservices. APIs are the focus of all these areas. The communication and deliverance of several services are possible through APIs. Today, the accumulation of customers in the online marketplace due to the integration of APIs with their system. These APIs provide better user experience and facilitation to the companies.
Salesforce is a software company that generates its 50% revenue through APIs. Whereas, eBay is generating 60% and Expedia is generating 90% revenue through APIs. 75% of mobile applications use internal APIs to provide its customers with multiple features and services. The integration of Facebook and Twiter APIs is increasing the demand for more APIs.

API Based Technologies and Online Marketplace

Identity Verification APIs

Over $445 billion is lost annually due to security breaches. The security of online stores should, therefore, be taken into consideration. Security APIs are available for e-commerce stores to integrate with their system that provides encrypted APIs to secure their system from attacks. Identity verification APIs help online businesses to identify and verify the customers onboard to avoid credit card fraud and online payment scams. Anti-Money Laundering (AML) and Know Your Customer (KYC) Complained APIs are integrated with the systems to ensure that fraudsters do not enter into the system and perform malicious activities. There are multiple verification techniques available through APIs that system integrates according to their system need. Verification can be done using multiple documents, facial recognition, video verification or handwritten notes. For these verification methods, separate APIs are available which can help the online marketplace to secure their system. Even if it is an online account opening service by banks, the banking industry needs to ensure that the traffic coming into their system is honest. API Based Technologies help financial institutions which are offering online services to their customer to verify that they are protecting their system from all kinds of vulnerabilities.

Speed Efficient APIs

To provide customers a fast onboarding experience, many speed reliability APIs are available that ensure robust processing. These APIs not only facilitates the customers but also at the administration end, provide smooth system management. Also, shipping and delivery APIs are part of the online marketplace to track the parcel until it is delivered to the customer. These APIs help reduce the error rate and complexities associated with the sorting done manually. To coordinate with the customer regarding their parcel status, shipping, and delivery APIs help to achieve the goal of better user experience.

Payment Handling APIs

Payment Handling APIs provide the customer with an easy interface to add their card and payment details. These APIs help both customers and administration analyze and manage transactions properly.

Future Prospects of API based Technologies

In natural language processing, predictive analytics APIs are emerging. These APIs combine enormous data which includes text, visual data, location, network and information gathered through mobile phones. The APIs are getting more secure with encryption and cryptographic technologies. APIs are profiting several industries with many reliable services which include commerce, retail, financial services, the gaming industry, and entertainment.
In the future, APIs will be managing all the data more efficiently and jump into the data management of the sensor’s level. The advance level security of blockchain will be made sure through APIs. the data gathered through IoT devices will be managed and flew through APIs. Not only this, almost all industries are using APIs to advance their systems to provide better user experience and generate more customers.
Just like Amazon Cloud Service is using data-driven through API Based technologies, a different system integrating with APIs can utilize the API-driven data for multiple processings and training purposes. That data can be used for verification and AI model training purpose. By examining the endpoints of API, documentation will be generated automatically.

Conclusion

An online marketplace is revolutionizing with the help of multiple integrated APIs. APIs help reliable communication of applications with another system. They also provide user-friendly interfaces to engage the customers. These APIs are internally linked with their system to provide a secure, reliable and better user experience.

Disclaimer: No warranty is herein provided that the information contained in this document is accurate, up-to-date, and/or complete. In no circumstance(s), does such information constitute legal or any other advice. Any person who intends to use, rely, pass-on, or re-publish the information contained herein in any way is solely responsible for the same. We suggest to verify the information and/or obtain expert advice independently if required.

Latest News

News
Data Security at Risk Due to the Fake Lending Apps
What are APIs?
How does the API-based technology works?
API Based Technologies and Online Marketplace
Conclusion
Gained network access, pictures, and contact information are at threat due to the fake lending apps that is now an increasing cause of stolen data. Government, as well as regulators, have cracked down on fake digital lending apps and have discovered Chinese nationals behind their operations. They are still working on to discover the amount of data stolen.

Data protection law is required to stop the apps to get away with tons of stolen data and personal information. This has led to a number of suicides as the app operators have blackmailed and harassed people. The borrowers were asked to repay the loan many times even after they have paid it. The operators of the app blackmailed the users by contacting their family or friends and posted stories and private information on social media.

These applications did not require KYC- Know Your Customer information from the users as the legitimate sites ask their customers of the proof identity. They just took basic contact information from the users, copies of their government-issued identity documents and then used their application to enable access to their smartphones. The data breach by this fake application has become one of the biggest data breach schemes.

Banks and police officials are working towards tracing the money that these applications have stolen through data breach, blackmailing and identity theft.

Co-convenor of Cashless Consumer states that “From these 1,000 apps, in the last ten days 118 apps have been removed and in total 450 apps are no longer available on the Play Store, but some of them operate from abroad. The legitimate apps authorised to lend in the database would be around 200 when it comes to the links between these apps and actors sitting abroad. So it is not a case of the data being transferred abroad but that it was collected abroad.”

How API-based Technologies Can Transform the Future of Online Marketplace

What are APIs?

How does the API-based technology works?