Updated: December 2025 (Originally published October 2022)
TL;DR: Successful embedded finance API evaluation balances developer usability, customer functionality, security requirements, and business scalability. The best APIs solve real customer problems while integrating seamlessly with existing systems.
The PM's Embedded Finance Dilemma
"The embedded finance API paradox: APIs with extensive functionality often have poor developer experience, while beautifully designed APIs sometimes lack the features your customers actually need."
Product managers face competing priorities when evaluating financial APIs:
Engineering wants clean, well-documented APIs
Customers demand comprehensive features
Compliance requires bulletproof security
Business needs quick implementation
Finding an API that satisfies all stakeholders requires systematic evaluation across multiple dimensions.
Core Evaluation Framework for PMs
Evaluation Area | Key Questions | Red Flags |
|---|---|---|
Developer Experience | Can we prototype in <1 week? | No sandbox, poor docs |
Feature Completeness | Does it solve our #1 customer request? | Generic features only |
Security/Compliance | Are they SOC2/PCI certified? | Vague security claims |
Integration Complexity | Will it work with our stack? | Rigid requirements |
Business Model | Does pricing scale with us? | High minimums, lock-in |
1. Developer Usability: Beyond REST vs GraphQL
The API standard debate misses the point. What matters is whether your developers can ship features quickly. Here's how to assess real usability:
Sandbox Test: Can a developer accomplish your core use case in the sandbox within hours, not days? If setting up a test environment requires sales calls and contracts, you're looking at weeks of delays.
Documentation Quality: Great APIs have:
Interactive API explorers
Copy-paste code examples
Clear error messages
Postman collections
Video tutorials
Developer Tools: Look for:
SDKs in your languages
Webhook testing tools
Detailed changelog
Active GitHub presence
Response time guarantees
"The best embedded finance APIs let developers build a working prototype before the first sales call ends."
2. Customer Value: Features That Actually Matter
An elegant API that doesn't solve customer problems is worthless. Evaluate functionality through your users' lens:
Talk to the Product Team: The API provider should have PMs who understand your business model. They should explain:
Why features are designed certain ways
How other platforms use them
What's on the roadmap
How they gather feedback
Feature Depth vs Breadth: Consider whether you need:
Breadth: Many basic features (payments, invoicing, expenses)
Depth: One area done exceptionally well (complex AP automation)
Customer Journey Mapping: Can the API support your users' complete workflow? For invoicing, that means:
Invoice creation → delivery → payment → reconciliation → reporting
Missing any step breaks the experience.
3. Security for Financial Data
"When handling other people's money, 'pretty good' security isn't good enough. Financial APIs require bank-grade protection."
Non-Negotiable Security Requirements:
Requirement | Why It Matters | How to Verify |
|---|---|---|
SOC 2 Type II | Proves security controls work | Request report |
PCI DSS Level 1 | Card data protection | Check certificate |
Data Encryption | At rest in transit | Review security docs |
GDPR Compliance | EU data protection | Privacy policy audit |
API Security | OAuth 2.0, rate limiting | Test implementation |
Questions for Security Teams:
Where is data stored and backed up?
How do you handle security incidents?
What's your vulnerability disclosure process?
Can we audit your security practices?
4. Integration Reality Check
Your platform already serves customers. The API must fit your existing architecture, not force a rebuild.
Technical Compatibility:
Does it support your authentication method?
Can it handle your transaction volumes?
Will it work with your current tech stack?
Does it require specific infrastructure?
Data Flow Considerations:
How does data sync with your systems?
Can you maintain a single source of truth?
What happens during API downtime?
How complex is the reconciliation?
Warning Signs:
Requires complete authentication overhaul
Forces specific database choices
Mandates particular frontend frameworks
Limited to certain cloud providers
5. Support That Scales With You
"The quality of API support becomes apparent at two moments: during integration and during your first production incident."
Support Evaluation Matrix:
Support Level | When You Need It | What to Expect |
|---|---|---|
Documentation | Daily development | Self-service answers |
Community | Common issues | Peer solutions |
Developer Support | Integration phase | Technical guidance |
Enterprise Support | Production issues | SLA guarantees |
Look for:
Developer-focused support (not just sales)
Public status page with incident history
Clear SLAs for different tiers
Proactive communication about changes
6. Stability and Scale Considerations
Financial features become mission-critical quickly. Your API provider must handle growth:
Technical Scalability:
API rate limits that match your growth
Geographic distribution for low latency
Proven uptime (99.9% minimum)
Transparent performance metrics
Business Scalability:
Pricing that doesn't punish success
No sudden feature restrictions
Multi-year commitment options
Clear data portability
Questions to Ask:
What's your largest customer's volume?
How do you handle traffic spikes?
What's your disaster recovery plan?
Can we get dedicated infrastructure?
The Hidden Evaluation Criteria
Beyond technical requirements, consider these often-overlooked factors:
Vendor Philosophy Alignment:
Do they see you as a partner or customer?
Will they build features you need?
How do they handle breaking changes?
What's their vision alignment with yours?
Multi-Rail Architecture (for payments): Instead of managing multiple payment APIs, providers like Monite offer multi-rail solutions that abstract complexity while providing redundancy.
Time to Value:
How quickly can you launch MVP?
What features are available day one?
How long until positive ROI?
What requires custom development?
Common PM Mistakes to Avoid
Mistake 1: Focusing only on features Reality: Poor DX kills feature-rich APIs
Mistake 2: Underestimating integration time Reality: Budget 2-3x initial estimates
Mistake 3: Ignoring vendor lock-in Reality: Plan your exit before entry
Mistake 4: Skipping security review Reality: Financial compliance is non-negotiable
Conclusion
Choosing an embedded finance API is one of the most impactful decisions a B2B product manager makes. The right choice accelerates your roadmap, delights customers, and creates new revenue streams. The wrong choice burns engineering resources and frustrates users.
"The best embedded finance APIs disappear into your product—your customers think you built everything yourself, while you focus on what makes your platform unique."
Take time to evaluate thoroughly. Test in sandbox environments. Talk to existing customers. Verify security claims. Your future self (and your engineering team) will thank you.
