API-First Payments in Colombia: What Every Fintech Needs to Know

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Mar 9, 2025

Mar 9, 2025

Colombia's fintech sector is expanding (and fast), with 394 local companies as of early 2024, many of which are innovating in payment services. As global businesses and local exporters seek more efficient, secure, and agile financial solutions, API-first payments have emerged as the standard.

For Payment Service Providers in Colombia, this shift isn’t just a trend—it’s a necessary evolution driven by regulatory reform, growing cross-border commerce, and the need to reduce costs and increase transparency.

Colombia now ranks as the third-largest fintech hub in Latin America, reflecting a robust and rapidly growing fintech ecosystem. Today, a modern stablecoin payments infrastructure—like that offered by Mural Pay—is becoming a strategic differentiator for PSPs seeking to lead in digital payments Colombia and beyond.

  • API-first architecture replaces slow legacy rails with programmable, real-time connections.

  • Open finance regulation (Decree 1297/2022) accelerates secure data sharing and payment initiation.

  • PSPs adopting API-first models report up to 60% lower cross-border costs and faster onboarding.

  • Stablecoin rails add speed, reduce FX spread, and unlock multi-currency settlement.

What Does “API-First” Really Mean for Payments in Colombia?

Think of API-first payments as the digital backbone enabling seamless, real-time financial interactions. Unlike legacy systems that require manual workflows and siloed integrations, API-first models are built so every feature is accessible via standardized, programmable interfaces. This approach allows fintech API providers to offer automated reconciliation, instant settlement, and frictionless connections with banks, wallets, and third-party fintechs, while embedding compliance checks like automated KYC and AML directly into payment processes.

Open banking Colombia and open finance initiatives, driven by Decree 1297/2022, are accelerating this shift by mandating secure API access for data sharing and payment initiation. Importantly, virtual accounts in Colombia are a practical use case—businesses can now receive, hold, and convert funds with ease, unlocking new efficiencies.

For more on these terms, see our payments glossary.

The Regulatory and Market Shift—Why Now Is the Time for API-First PSPs

Industry experts agree: Colombia’s regulatory and market changes are accelerating the adoption of API-first payments. According to Finnovista (2024), “Open finance regulation in Colombia is a game changer for PSPs and fintechs, unlocking new business models and partnerships.” The enactment of Decree 1297/2022 has created a voluntary but influential framework for API interoperability, while regulatory sandboxes established by national authorities encourage fintech experimentation under oversight.

Recent research shows that 60% of Colombian PSPs have transitioned to API-first models, reflecting a significant, urgent shift toward digital transformation (Latam Fintech Hub, 2024).

As noted in Colombia’s evolving regulatory environment, these changes reduce barriers for new entrants and support rapid compliance with KYC, AML, and data privacy requirements—making now the ideal time for PSPs to adopt API-first strategies.

API-First vs. Legacy Payment Systems—A Side-by-Side Comparison

Let’s examine how API-first payments stack up against traditional, legacy payment infrastructure for Colombian PSPs:

Feature/Factor

Legacy Payment Infrastructure

API-First Payments

Integration Speed

Weeks or months

Hours or days

Cost of Cross-Border Txns

High (multiple intermediaries, fees)

Up to 60% lower vs. legacy (Latam Fintech Hub, 2024)

Compliance

Manual, error-prone

Automated, embedded at API layer

Transparency/Tracking

batch-based

Real-time, programmable

Developer Experience

Poor documentation, closed systems

Standardized APIs, robust sandbox environments

API-first PSPs in Colombia report up to 60% lower cross-border payment costs and onboarding times reduced from weeks to hours compared to legacy solutions (Latam Fintech Hub, 2024).

B2B payment failure rates dropped from 6% to just 1.5% after API-first adoption, demonstrating significant reliability gains.

For more on instant, programmable global payments, see our Payments page.

Stablecoin On/Off-Ramps: Extending API-First Capabilities

While speed and cost savings grab headlines, the real advantage of API-first architecture lies in flexibility. By plugging directly into stablecoin on/off-ramps in Colombia, PSPs can move funds between bank rails and digital wallets without traditional cut-off times. This creates a continuous flow of liquidity that supports payouts in USDC, local currency settlements, and rapid treasury rebalancing.

Because these rails operate 24/7, businesses reduce exposure to currency swings and service interruptions—critical benefits for high-volume exporters and marketplaces. Adding on/off-ramps is often a configuration change, not a full rebuild, making it an attractive next step for PSPs that have already modernized their core stack.

Real-World Proof—How API-First Payments Transform Cross-Border Transactions

API-first adoption isn’t just theoretical—it’s already transforming real businesses in Colombia and across LATAM. For example, a Colombian exporter shifted to an API-first system and saw payment cycles reduced from three days to under one hour while also cutting transaction costs by 45% (PayTech LATAM, 2024).

Globally, stablecoins accounted for $11.5 trillion in on-chain volume in 2023, nearly on par with Visa. Similarly, a Brazilian fintech reported a 50% decrease in payment failure rates after moving to API-first infrastructure.

Another industry case: dLocal’s RESTful API integration enabled faster onboarding and instant foreign exchange for regional merchants—expanding their reach while maintaining compliance.

These stories prove that adopting cross-border payments in Colombia and stablecoin payments through API-first models can drive immediate, measurable ROI for PSPs. To learn more about how Colombian fintechs can integrate stablecoin payments, see our article on API-driven stablecoin payouts.

Key Challenges & Best Practices for API-First PSPs in Colombia

It’s a question nearly every payment leader faces: What are the main challenges and best practices for adopting API-first payments in Colombia?

The most common challenge is integrating new APIs with entrenched legacy systems—often cited as the top technical hurdle by Colombian PSPs (Latam Fintech Hub, 2024). Security and compliance pressures remain high, particularly around data privacy under Colombia’s Habeas Data Law.

Best practices include using standardized RESTful APIs, embedding KYC/AML directly at the API layer, and investing in robust developer documentation and sandbox environments for smoother onboarding.

Conversely, poor documentation and lack of audit trails are common pitfalls that can undermine successful API-first adoption.

For more details on developer documentation and support, visit our Documentation.

The Future Outlook—Why API-First Will Define Colombia’s Payment Landscape

Too many companies focus only on the immediate migration pain, overlooking the larger opportunity: API-first payments will define the future of Colombia’s digital economy. Open finance is projected to drive more than $1 billion in new fintech revenue in Colombia by 2026 (Inter-American Development Bank, 2024).

Real-time, programmable payments are rapidly becoming the market standard.

Developer experience and strong open finance capabilities will become critical differentiators as competition intensifies.

The bottom line: By embracing this transformation, PSPs don’t just improve efficiency—they position themselves at the forefront of Colombia’s next wave of financial innovation.

Ready to see how an API-first stack can modernize your cross-border operations? Contact our team or request sandbox access to experience Mural Pay in action.

FAQ

  • What is an API-first payment architecture?
    An API-first approach builds every payment feature as a programmable endpoint, allowing PSPs to integrate, automate reconciliation, and comply with regulations without manual intervention.

  • How do **stablecoin payouts** reduce costs for Colombian PSPs?
    Stablecoin rails bypass multiple banking intermediaries, cutting FX spreads and transaction fees, which can lower cross-border costs by up to 60% compared to legacy wires.

  • Are **virtual USD accounts** legal for businesses in Colombia?
    Yes. Virtual accounts are permitted under Colombia’s open finance framework as long as providers conduct proper KYC/AML checks and follow central bank reporting guidelines.

  • How long does it take to integrate Mural Pay’s API?
    Most PSPs complete initial sandbox testing within a day and move to production in under two weeks, thanks to standardized endpoints and detailed documentation.

References

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Stablecoin Payments Infrastructure for the Americas

A modern platform and API for pay-ins, payouts, invoicing, virtual accounts, and compliance—powered by stablecoins and built for global businesses across the Americas.

Stablecoin Payments Infrastructure for the Americas

A modern platform and API for pay-ins, payouts, invoicing, virtual accounts, and compliance—powered by stablecoins and built for global businesses across the Americas.

Stablecoin Payments Infrastructure for the Americas

A modern platform and API for pay-ins, payouts, invoicing, virtual accounts, and compliance—powered by stablecoins and built for global businesses across the Americas.