APIs are essential in the creation of modern applications. They allow information to be communicated and synthesized between different applications in order to increase their effectiveness. Currency conversion APIs are incredibly popular. Before looking at why developers use currency conversion APIs, let’s take a look at the four main kinds of API in use today:
Open APIs – otherwise known as public APIs – are made available to any developer. Because the use of these interfaces is not limited, more data can be shared by users, which enables developers to improve their functionality. Currency exchange and financial tracking APIs like Currency API operate using a similar principle.
Unlike open APIs, partner interfaces can only interact with entities that are connected to the original user via some form of business agreement. Partner APIs are generally considered to be safer than public ones, but are limited in their use due to these extra restrictions.
Unlike the previous two entries on this list, internal APIs are not intended for the sharing of information outside of a business. They are strictly authorized to collect and distribute information and communicate with applications from within an organization.
Composite APIs are used when a business needs to make more than one kind of information request without having to make any kind of intervention. If, for instance, a customer completes the checkout process on an ecommerce website, a chain reaction of information sharing and notification needs to take place.
Now that you know about the different kinds of API available, it is time to look at the reasons why app developers need currency APIs.
For Ecommerce Clients That Want To Sell Internationally
When developing an app for an ecommerce client, one of the requirements the client will set out usually involves some provision for international selling. Up-to-date currency conversion information – made possible by an API – is essential when creating a shop that people can use all over the world. Some automation is possible: with the app making use of user information to automatically display the correct currency.
For Forex Trading
Forex trading is the practice of using the ever-fluctuating foreign exchange market to make money by ‘betting’ on the relative worth of a currency. Trading apps often include the provision for Forex trading. Users of these applications need to have up-to-date and historical foreign exchange data in order to get a good picture of the market. APIs can enable apps to provide this information.
For International Travel Applications
A growing number of consumers are beginning to book their international travel via applications. In some circumstances, it is necessary to provide up-to-date currency exchange rates to consumers looking to find the best travel and accommodation deals. A hotel, for instance, might list its prices in one currency, but receive most of its custom from people that primarily use another. APIs help to automate the showing of prices in the currency of the consumer.
Hopefully, this article has explained the three reasons why developers would need a currency API.