3 Currency API Use Case Examples
Written by
- Redaction Team
- February 28, 2023
- Digital Business, Entrepreneurship
The use of currency API solutions has become widespread in the modern world of business over the last decade. Currency APIs allow access to up-to-date values of a diverse range of currencies, from common currencies such as the dollar to established and emerging cryptocurrencies. A diverse range of businesses will use this form of API to allow their daily business activities to run smoothly and effectively.
In addition, the use of currency APIs can help companies conduct their business more efficiently, especially when they are trading with customers and clients who live in different countries and use different forms of money. In this article, three types of businesses that commonly use currency APIs in their daily trading activities will be discussed in detail.
Travel agents
In 2023, the online consumer can purchase a vacation or trip online from a range of travel agents that offer journeys and accommodation in far away and exotic destinations. Securing a holiday can only take a few clicks on a website, and the adventure will be paid for. However, most consumers do not realize that many travel agents will often buy these holidays from a foreign operator based in the host country. It is imperative that the travel agents charge a price that reflects the costs that they will incur from the suppliers in providing the trip, accommodation, and any excursions.
It is therefore important that travel agents have access to up-to-date currency information and conversion rates so that they can charge a competitive price that allows them to make a suitable profit margin. Companies such as currencyapi.net provide the APIs that enable travel agents to set realistic prices for their consumers. The APIs are also used extensively by travel agents that offer currency exchange services to their customers. It is vital that up-to-date currency information is used to ensure that applicable rates of exchange can take place.
Modern E-commerce
E-commerce businesses typically trade on an international scale, thanks to the rise in popularity of the internet. Today’s consumers are fully prepared to buy from a company that operates outside their nation if they can be assured that the product will be delivered in a timely manner. However, most consumers want to purchase goods and services in their own currency, and this is where a currency API becomes extremely useful for the e-commerce business.
By using a currency API, the e-commerce company can effectively display prices for their goods in a wide range of currencies and tailor these prices to reflect the home currency of the consumer. The prices can change in real-time based on changes in value and the exchange rate of various currencies.
Forex Traders
As a final example, forex trading companies (i.e., those that trade in currencies) will need to use currency API software on a continuous basis. This software will provide them with up-to-date currency values and how they are changing in terms of their exchange rates with other currencies.
In addition, some currency APIs will enable the trader to gain access to historical currency values. This information can assist greatly in forecasting the movements of currency values based on past performance, and when combined with other forms of information (such as political and economic developments), it can significantly improve the success rate for trading in currencies.
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