API vs. Payment Gateway: which solution is best for your business?

In today’s highly competitive digital market, a payment strategy is a key factor for companies aiming to grow or establish themselves globally. According to Statista, the digital payment market is expected to process over $15 trillion by 2027, with emerging markets such as Brazil, Mexico, Colombia, and Peru leading the way as local payment methods dominate consumer preferences.

However, opportunities come with challenges. Security, scalability, and customer experience are top priorities. This is where the decision between payment APIs and payment gateways becomes crucial. The choice depends on your business strategy, long-term goals, and the level of technological investment you are prepared to make. Let’s explore each solution to determine which best fits your needs.

Payment APIs: flexibility, localization, and control

Payment APIs are at the core of innovation in the financial sector. They connect systems directly to banking networks, local payment methods, and digital wallets, ensuring seamless and customized integration.

More than a technical tool, APIs represent a powerful business strategy. They enable companies not only to process payments but also to create optimized, localized experiences that build customer trust.

1. Unlimited flexibility: Fully integrate with your company’s operational flow, allowing complete customization
2. Global scalability with local adaptation: Enable expansion into new markets while supporting local payment methods like Pix in Brazil or SPEI in Mexico, enhancing customer experience and providing a sense of security
3. Efficiency and automation: Automate financial reconciliations and reporting, reducing operational costs
4. Advanced security: Leverage technologies such as end-to-end encryption and dynamic authentication to minimize risks and ensure robust data protection

For example, Uber adopted APIs to customize payments in different regions, directly integrating with local methods in emerging markets. This strategy allowed the company to achieve a 43% increase in global revenue between 2020 and 2023, according to financial reports published on the company’s official website, while providing a payment experience tailored to regional expectations.

Payment Gateways: convenience and speed for startups

Payment gateways are well-established, ready-made solutions that simplify the connection between businesses, customers, and financial networks. Their greatest appeal lies in their ease of implementation, making them ideal for companies seeking agility and security with minimal technical effort.

Strengths of payment gateways:

1. Quick implementation: Requires no large technical teams or advanced expertise
2. Robust infrastructure: Offers reliable systems with built-in fraud prevention tools
3. Standardized experience: Facilitates payment management with pre-configured workflows that cater to most use cases

Challenges of gateways:

Companies looking to scale globally face challenges with gateways due to limited flexibility in integrating local payment methods and adapting to regulatory compliance requirements in different markets. These limitations can lead to higher costs and operational bottlenecks as the business grows.

When to choose one or the other?

The decision between APIs and gateways should be driven by your business strategy, transaction volume, and available budget for technology.

Businesses seeking sustainable global growth, with a focus on customization and operational efficiency, often find more value in APIs. Conversely, payment gateways are quick solutions for companies just starting out or operating simpler local setups.

Take a closer look at the comparison:

The future of payments in emerging markets

Latin America is where countries are leading the transformation in digital payments, recognized for their rapid adoption of technologies like real-time payments and digital wallets. In Brazil, for instance, Pix now accounts for 40% of digital transactions, while Mexico’s SPEI is widely embraced.

These markets not only show accelerated growth but have also become strategic powerhouses for global companies aiming to expand operations. Businesses that integrate local payment methods earn consumer trust and gain market share in highly dynamic economies.

The importance of choosing a strategic partner for your business expansion

In the world of digital payments, choosing the right partner can be just as critical as selecting the right technology. FacilitaPay positions itself as more than just an API provider; we are a partner that understands the unique challenges of each market and helps your business navigate emerging economies with confidence.

What sets us apart:

• Local and global integration: Methods like Pix, SPEI, and PSE connected through a single platform.
• Security first: Advanced encryption and dynamic authentication to safeguard every transaction.
• Dedicated support: A local and technical team to ensure your expansion is efficient and sustainable.

We work side by side with you, helping your business grow globally while ensuring every payment is a positive experience for your customers.

If your company is ready to take the next step, count on us to create solutions tailored to your goals and needs. Let’s build the future of payments together.