For most people, money is simply a means to an end. They go to work, get paid, and exchange their money for goods and services at local shops and online retailers. Many don’t give much thought to currencies save the one they get paid with. But businesses, especially online businesses, need to handle currency on a global scale.
At the heart of a global economy is the idea of the exchange rate. It is the value of one currency in another. And, as you might expect, exchange rates are in a constant state of flux. This means that if you plan on incorporating currency and exchange rate information in your applications, you need tools that will make it easy to work with that data. That is where the exchange rates API comes into play.
This article will discuss why you should invest in an exchange rate API to stay updated and connected with global technological advancement.
Table of Contents
Why Should You Invest in an Exchange Rate API?
By using an exchange rate API you can incorporate almost any global currency into your applications with ease. You also won’t have the headache of managing all of that information yourself.
1. Do You Care About Accurate Exchange Rates?
You might ask yourself, is an API going to help you manage and work with currency and exchange rates? Yes, it will because exchange rate APIs are incredibly accurate. They source their information from a very broad base of commercial and financial institutions. Furthermore, they are always up to date.
2. Does Your Application Support Multiple Currencies?
Currently, most applications don’t support multiple currencies. But with the help of exchange rate APIs, your customers make purchases in the currency most convenient for them. Moreover, with advancements in virtual currencies, the world is transitioning towards web 3.0. This makes it even more important for companies to have instant currency conversion in applications in the near future.
The competition will become tough as more and more apps start supporting multiple currencies to connect with global audiences on their platform. Having multiple currency support and instantly converting one currency to another will be crucial. That is where exchange rate APIs will come in very handy.
3. Is Your Data Coming from Comprehensive Sources?
Exchange rate APIs support multiple currency types. They need reliable data sources to gather current and historical rates. To do this they collect the exchange rates from various data sources, including international banks, financial providers, finance institutions, and other commercial authorities. As a result, these exchange rates have accurate current and historical data that goes back months or even years.
4. Do You Want Ease of Use?
Is it easier for you to work with JSON format? Fortunately, most exchange rate APIs return responses in JSON format. This means that no matter what language or platform you use, you can easily use the information in your applications.
5. Does Your Application Deal With Cryptocurrency?
Cryptocurrency is the most significant technological invention since the internet. If you are still not up to speed with it, then you will be left behind. But, the good news is that you are still in time to catch up. It’s just like when the internet was taking off in the ’90s. There were those who resisted adapting to it, but we all use it now. Today we have a blockchain and crypto revolution, which side of the fence do you want to sit on this time around?
Just like we now rely on the internet for information and communication, soon we will rely on financial transactions using blockchain. If you are not up to speed now, what are you waiting for? If you are denying transactions in cryptocurrency, you are missing out. After all, tech giants like Tesla accept crypto payment methods. Simply put, it’s time your business provides crypto channels for your customers.
6. Are Your Current Methods Secure?
Enterprises already know that APIs are necessary to enable communication between applications and end-users. The use cases range from your car telling you where the nearest fuel station is to your phone fetching exchange rate updates. However you use APIs and no matter what devices you connect, ultimately, you want to rest assured that those APIs are secure.
Cutting-edge exchange rate API companies have projects underway to continuously improve API security. Using a layered approach, they are constantly trying to address the risks for applications exposed to APIs.
7. Are You Worried About Integration or Compatibility?
Most exchange rate API solutions have helpful integration and customer support pages.. Moreover, these APIs generally use the JSON format, which improves integration and compatibility with any programming language. It also improves scalability. Furthermore, JSON is pretty easy to read and parse, making the integration process even easier.
8. Do You Want Historical Data?
Forecasting exchange rates can help minimize risks and maximize returns. Having historical exchange rate data is useful when you want to predict currency exchange value and make informed decisions.
9. Is Your Existing Solution Fast Enough?
If your response time is not good, you might lose customers. Typically, even if your application takes a few extra seconds, it might be slow enough for your customer to change their mind. Using an exchange rate API, however, you don’t have to worry about the response times. Generally, one second is the maximum acceptable response time when dealing with APIs.
10. Are You Trying to Increase Your Customers?
To expand your customer base, it is vital to integrate an exchange rate API integrated with your application so that you are up to date with new global adoption. In addition, you need to provide your customers with a new means of getting access to your product via virtual wallets and integrated exchange methods supporting multiple currencies.
Money makes the world go round. Now, that is a cliche, but it is still very accurate. It is difficult to keep track of the many global currencies and their constant changes in exchange rates. But, thankfully, the Exchange Trades API makes it easy to integrate global currency, foreign exchange, and even historical data into your applications. As a result, thousands of developers already trust this exchange rates API for the projects for its stability, reliability, accuracy, and up-to-date data.
Feel like you are ready to explore the exciting world of exchange rate APIs? Give currencylayer a go and see how this universal real-time exchange rate data solution changes the way you deal with transactions.