API Banking Decoded

Know all about API Banking, working, benefits and how you can use API banking to step up your business banking while enhancing user experience.

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What is API Banking?

API Banking is a set of routines, protocols or tools that allows access to a bank’s services to other financial institutions or third-party platforms like Cashfree.

Functions that a business would generally perform on a banking portal manually such as adding beneficiaries, transfer of funds can be automated from within the internal ERP or product using APIs.

How Does API Banking Work?

Process

Banks (eg ICICI) allow limited and secured access to their core banking system for other third party platforms like Cashfree to access data and execute banking functions like transactions, balance query, checking account information.

  • ICICI opens its core banking system for Cashfree

  • Cashfree integrates the bank APIs to establish a connection with ICICI’s core banking system.

  • Cashfree makes a request (API calls) to fetch the required data from ICICI servers or execute functions.

Third-party platforms like Cashfree offer a convenient interface to perform API Banking functions for transactions and other business use cases. Businesses and other financial service providers can easily integrate a single Cashfree APIs to access multiple banking APIs.

Disclaimer: The brand names have been used only for reference. Brand names & logos are property of the respective bank & institution.

Limitations When You Integrate Directly with Banks

Difficult integrations

Bank APIs are often written with SOAP protocol that is complex to integrate and offer lesser flexibility around sending data. Typically takes 6 months or more to get started.

Limited TPS

Bank servers can process only a certain number of transactions per second (TPS). If a big business tries to process over the set limit, all such transactions fail.

Difficult reconciliation

In case of failed or reversed transactions, identifying and reconciling them requires effort. Different banks and different payment methods tend to have varying reporting formats and types of issues.

Single bank a/c dependency

Since integration is time-consuming for a single account, businesses find it hard to use any other bank account. When specific bank’s servers are down, there are no alternatives to transact.

Introducing Cashfree Payouts
New age API banking platform

More than bank transfers

Cashfree API banking platform can be used to do payouts to any bank account. Further you can send money to any UPI-BHIM ID, PayTM wallet or debit card.

Verify before you Pay

Use Cashfree Bank Account Verification feature to validate accuracy of bank account number and account holder name before sending money in real-time. Know more.

New Now Verify UPI IDs in bulk

Built for scale, works 24x7

Process upto 100,000 payouts per day. Cashfree Banking APIs work 24x7. Money moves even when banks don't.

Easy to integrate

Developer-friendly APIs. Easily integrate with your website, app, ERP and send money automatically Integrating Payouts takes a few hours only.

Check API Documentation

Simpler file uploads than banks

Use API or easy to use Dashboard. Move ahead of file upload errors. Bulk payouts are easy now.

Higher success rate

Integrated with multiple bank's, Cashfree rerouts transactions through alternate banks if originating bank server is not responsive using intelligent algorithms.

Bank Partner

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Already have a corporate banking account?

Here is why you should give Cashfree Payouts a try !
100% online onboarding with KYC, do your first transaction almost immendiately. What's more? Instant bulk beneficiary addition & activation.

Payment modes

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