Within the tech world, there are two primary systems for software API- closed loop and open loop. Both types of systems are prevalent in the cannabis industry and certainly have some benefits and disadvantages, but are you equipped to make the big decision between them? Here, we will arm you with the facts so you can make the best decision for your business; that’s what we do.
Closed Loop
Closed Loop API means that the integrations and all components of the software are locked into a specific system that can’t be accessed by outside partners. While this gives the internal software developers more control over the user experience, it does mean that external partners such as menu, delivery, marketing, finance, and other groups will need to be manually integrated. This creates a longer project timeline to get new partners integrated into the software and only allows internal developers to support any troubleshooting regarding the actual integration.
Open API
In contrast to closed loop API, open API, for lack of a better term, plays well with others. Open API software solutions tend to be progressive partners and allow for their API to be integrated with authorized users. With an open API, a business partner must connect with the software partner and build a connection to support seamless integration. While any approved partners can access open API, that does not discount the safety of an open API software system. Open API systems have dedicated developers to ensure secure integration with every partner.
What’s Better Long Term?
While both systems include dedicated software developers and support, a closed loop system can get left behind. With more barriers to entry to integrate with partners and only the internal development team to support the software’s functionality, closed loop systems can be restrictive and slow to adopt evolving technology. Open API naturally allows for ongoing technology adaptation, which is essential in the cannabis world. As cannabis evolves, the systems in place to ensure its success naturally will as well. An open API software partner keeps users at the cutting edge to remain relevant and is never left behind. The bandwidth and developer restrictions are not the same issue as they are with a closed loop system, and users of open API software reap the benefits of accessing more business partners.
How Do I Find an Open API Cannabis Software?
When shopping for POS or compliance software, ask your sales rep if their API is in a closed loop system or open API. While this may not be the first selling feature brought up, it is incredibly important to know as you decide on your growth software. The right open API software partner removes restrictions and gives operators the right tools to grow. MJ Platform, for example, currently has over 150 secure API-integrated partners to ensure all MJ Platform operators can expand their business as much as possible. To learn more about our API integrations and our growth-focused software, click here to book a personalized software demo.
