- Author: Peggy Tsai
Unleashing the Power of Collaboration and Innovation with Open API Ecosystem
In today’s digital era, businesses are constantly looking for winning digital strategies to respond to dynamic market changes and ever-evolving customer needs, and building a services ecosystem has emerged as a top approach to creating new revenue streams. As a fundamental enabler of data communication, APIs allow seamless integration between applications, which further facilitates a connected services ecosystem that brings great business opportunities. Enabling businesses to monetize data and services in more innovative ways, API ecosystems can help businesses expand their core offerings, grow market reach, improve customer experiences and unlock more possibilities.
What are API-enabled digital ecosystems like? Let’s take a look at how businesses are leveraging APIs to engage with partners from the following two iconic examples in the Asia Pacific region.
API Ecosystem Use Case 1: LINE
Leveraging the large user base, the messaging giant LINE has transformed into a super-app incorporating built-in payment, social networking, streaming services, gaming, marketplace, loyalty programs and many more, creating a vibrant ecosystem of services.
One key feature is in-app purchases; integrated with third-party services with the connectivity of APIs, LINE allows users to purchase products from the e-marketplace using reward points LINE Points. The e-marketplace fosters collaboration with other businesses in the ecosystem. It is further combined with LINE’s core messaging functionality; users can even send gifts to their friends remotely through LINE chat.
Moreover, originally a messaging service, LINE has evolved into a web-only banking service LINE Bank in Taiwan. Enabling greater accessibility to banking services, LINE Bank utilizes APIs to integrate with third-party services such as payment gateways, credit rating agencies, and customer relationship management tools. These integrations help LINE Bank provide a more comprehensive and personalized experience to its customers. In addition to banking services, LINE Bank also partners with insurers to offer insurance products, allowing users to purchase a plan on the app, and pay via LINE Bank account.
API Ecosystem Use Case 2: Grab
Another ecosystem key player is Grab, Southeast Asia’s leading super-app. Grab is a ride-hailing platform that offers a wide range of services, including mobility, deliveries, bill payment, financial services and many more.
APIs allow different applications and services to interact with each other seamlessly, making it possible for Grab to integrate with third-party apps, and further create an ecosystem of services that can be accessed and used by different partners.
In Indonesia, for example, Grab has integrated with various digital payment providers such as OVO and GoPay. This integration allows Grab users to pay for their rides and other services using their preferred digital payment method. Besides, Grab has integrated with various food delivery services, making it available for users to order food from through the Grab app. What’s more, Grab also provides external developers with access to its data through APIs, helping them build applications that provide real-time traffic updates to help drivers optimize their routes.
Embracing Ecosystems in the Financial Industry
More and more financial institutions are embracing the ecosystem model and partner with fintech and TSPs’ services that are complementary to its core offerings to stay competitive in this digitally interconnected world. They need a microservice framework to add or scale up new services, and this is how a middle platform featuring secure and reliable API management comes into force, as all of the communications are achieved through API-led connectivity. TPIsoftware’s DigiFusion has the security design that is mandatory for international Open Banking and Open API specifications; it also features hands-on integration and API orchestration tool to connect third party services in a centralized platform.
APIs play a critical role in enabling collaboration and innovation of ecosystems like LINE and Grab. With API access capabilities, these ecosystems are able to multiply innovation, enhance their user experience and provide additional value to the users.