You’re growing your banking API features list and weighing the pros and cons. Between the cost, labor, and available technology, you have a plethora of options to choose from. But this can make things difficult.
Luckily, when you go with a service like Sila, making these hard choices becomes far easier. With Sila, you can easily start your banking API and then add on the features you want later for the ultimate scalability.
One feature you’re likely debating is the card issuance features. Here’s what you need to know about cards and why (or why not) you should include them in your banking API.
What is the Card Feature in your Banking API or Payment API App?
For fintech, adding a card to your financial API means that your customers will be able to request and receive a virtual card or debit card associated with your account. The card features are highly coveted among many customers, from consumers to businesses, because it gives them the option of using your financial API for more things. For example, you could allow your users to issue cards to their users, which are businesses and have branded cards connected to their Sila supported accounts. Then the card can be used for business purchases, and this opens up doors for more businesses to gain access to necessary cash flow.
Cards can also be used for push-to-card, which is another form of providing instant ACH or instant settlement but it requires fewer steps on behalf of the merchant customers. The push-to-card is kind of a faster ETF or refund type transaction; it’s not really an instant settlement, but it acts like one and allows people to exchange money faster.
If you’re unsure about adding a card, as mentioned, you can always add one later when you start up with Sila through our card API. However, if you go with another service that does not yet offer card issuance, then you may struggle to integrate cards when the time comes.
Advantages of Adding Cards to Your Banking API
Having digital card issuance in your banking API comes with a number of advantages. The advantages can depend on why you’re starting a banking API, but for the most part, the card can always benefit your users. And with strategic partnering, you could allow this service and only pay for it when a user wants to use it, rather than 24/7 even when no cards are active.
So what are the advantages of adding a card to your financial API? There are numerous use cases and benefits that might encourage you to consider this feature:
More User Options
Users want options when it comes to neo banking, and not offering a card is simply not good enough. Offering a card (alone), one that comes with a number of desirable features and is cost-effective (and cost rewarding too) only makes sense to stay competitive in fintech.
With card issuance features, you can issue a physical card, virtual card, and a tokenized card as unique selling points. The payment cards can be added to digital wallets like Google Pay and Apple Pay for POS transactions or digital payments. It can also be linked to a credit card too for rewards programs, and more.
Your users, in general, like to see that a company is adding features, whether they want the features or not. Of course, it does help that they find the features desirable. And, if you are starting a banking API, then the chances are rather high that your users will want a card or could want a card in the future.
Regardless, adding cards as a feature looks good and is quite affordable to do so, especially through Sila’s partnership with Lithic who issues insanely fast cards with Sila user accounts.
Open Banking and Accessibility
Cards simply allow open banking and more individuals to access cash and the ability to send cash globally. With Sila’s integration platform and through Lithic’s brilliant operations of programmatic card issuance and instant issuance, you are giving more users the ability to access funds in the U.S. and send money how they want.
Open banking and financial accessibility are a huge value of Sila’s, and we will do everything we can to continue to promote more features and opportunities so more people can access their money and the U.S. market when they need to.
While online banking with neo banks or banking APIs might seem like a new thing, more users are realizing that these new bank types actually offer innovative ways to send money. One is the programmatic features.
With Sila, users can actually program their money through smart contracts and send money that way. This same technology (based on the Ethereum blockchain) can also be applied to card issuances, which means that users can set up the system for card issuance for their users and the virtual cards can be created programmatically and automatically for merchant payments.
Programming virtual card creation can allow your users to spend more online, use it for media and ad buying, use it for flights and point collecting, pay bills, and defer payments. These cards can be leveraged for streamlined financial reconciliation and payment ops, too.
Access Authorization Stream Access (ASA) Or Instant Settlement
Basically, push-to-card, users at Sila can access Lithic’s instant issuance to replace ACH, checks, and cash for faster, safer funds transfers. You can also earn interchange revenue by offering this service.
Cards can be issued as physical cards, virtual cards, or tokenized cards all through one integration. Use this key feature for loan disbursement, insurance, or rewards and incentives.
Fully Custom Branded Cards
One of the biggest selling points of issuing cards is that even small businesses can provide their employees, clients, and contractors with branded cards for more options.
Through Sila’s partnership with Lithic, create fully branded cards that are attached to virtual accounts and tap into the benefits of partner bank networks for sending money across the U.S. and abroad. Build a corporate card or marketplace for endless expansion in the financial world.
Should You Include A Card With Your Banking API?
So, the answer to should you include a card in your banking API is YES. Other than some nominal costs, like the desire to keep your fees extremely low and the inability to account for those costs in transactions, there’s really no reason why you shouldn’t include a card in your banking API.
With Sila you gain access to a member FDIC bank already, so you know that you have a trusted financial institution backing that payment card. And when you startup or transfer your banking API to Sila, you can start your financial app in the sandbox and then add on your card issuance feature when you’re ready.
Ready to get started with your banking api with card issuing? Reach out to your Sila partner today to reap the rewards of card issuance and Banking API through Sila.