The term “exchange rate API” might sound difficult; however, it is not that complicated. It is actually a reliable and simple service to know the historical and current foreign exchange rates and cryptocurrency exchange rates. The data gets sourced from the database of the European Commission.
Two applications can interact with each other with the help of an API (Application Programming Interface). For example, Facebook and Messenger are two different applications; however, you can use Facebook and send messages via Messenger at the same time. This is because those apps are using an API.
Now, the question is why you will require an exchange rate API. The reason behind it is, not every business can run using a traditional method. Different businesses and companies have different requirements.
Here in this article, you can understand how getting an exchange rate API can help your business.
Easy International Payment
With the rapid development of technologies like AI, automation has become the future. The cutting-edge technologies used in exchange rate APIs make the online payment process automated and more convenient.
APIs have lots of potentials to help your business; let’s see what those are:
Risk Management
Exchange Rate API can manage serious issues like foreign currency risk and even cover your currency market exposure.
When you are thinking of getting an exchange rate API, you might get many companies that offer API services. However, not every company can understand your requirement by listening to you at first. Therefore, to make your business risk-free, it is required to take such an API service provider who can give you tailor-made solutions.
Some of the providers also offer a free trial pack for few days. You can test such a trial package of currency exchange rate API from Oanda.
Efficiency
There’s no need to wait for few days to complete your transactions. With just a few clicks, you can make payments instantly. The fact here with exchange rate API is that you are outsourcing your payment and speed up the process.
Transparency
You will always get the live rate from these APIs. When you know the exact rates, it will be helpful in making a fair trade. Apart from that, you will get to know about the ongoing transaction cost as well as you can get details about hedging strategies too.
Protection
With a good exchange rate API, you can get individual-based automated hedging exposure when you go for medium-to-long deals. Therefore, you can get a clear view of the profit and margin of the management and accounting by eliminating the currency risk all over.
Reporting
You don’t have to continuously track the payments because you will be notified every time you receive or send funds. Apart from that, you can also request and generate reports to get an idea about every transaction and other correlated costs.
Final Words
Now you know how exchange rate API can benefit your business. Don’t choose the first service provider you meet. Talk to them and let them know your requirements. Only deal with them when they can solve your purposes based on your needs.
