SWIFT has published the first of its open-banking focused application programme interface (API) standards. The API concerns the pre-authorisation of funds and allows a payer's financial institution to guarantee payments will be honoured by identifying funds for a particular purchase in advance of the transaction. Industry participants have noted how banks, fintechs and merchants need to collaborate in the publication of API standards. If all institutions offer different API standards, digital merchants will have to adjust to each one, leading to industry fragmentation.
SWIFT has published the second of its open-banking focused application programme interface (API) standards. The API concerns the pre-authorisation of funds and allows a payer's financial institution to guarantee payments will be honoured by identifying funds for a particular purchase in advance of the transaction. Industry participants have noted how banks, fintechs and merchants need to collaborate in the publication of API standards. If all institutions offer different API standards, digital merchants will have to adjust to each one, leading to industry fragmentation.