Paypal X: Open API as an Indirect Strategy »

On Tuesday, the WSJ ran this article about the launch of Paypal X, Paypal’s developer program.

Great to see an API showcased as the heart of an industry leader's core business strategy - and called out as such in the top business newspaper. 

Paypal is executing an indirect strategy by opening their core services via APIs in order to have their payment capabilities more easily consumed in other applications and services.

Ten years ago, you could read articles like this about companies launching their websites to execute a *direct* business strategy… selling directly to customers.

Just as it was a decade ago, companies will slowly wake up and realize that they need to have an indirect business strategy online, either because they see the massive business opportunity ahead of them, or they see their competitors already executing an indirect strategy against them.

We see 'indirect online strategies' like PayPal and TransUnion Interactive as the beginning of an emerging API Economy.   A company without an API in 2009 is like a company without a website in 1997.