Cash is a thing of the past, and so is the wire transfer for that matter. As we move more and more away from hard cash, digital bankers and fintech solutions are creating more ways to use online or digital money. Facilitated by secure software and APIs, money transfer APIs are enabling more people to move mobile money from anywhere in the world, and with a lot of speed, security, and versatility.
If you are looking for an alternative payment method, or perhaps a Paypal alternative, especially for sending money in the United States or as a cross border bank account payment, then you have likely considered an API to transfer money. API for money transfers is an extremely secure and easy way of sending money anywhere in the world.
Not sure just yet? Read on to learn the reasons why you should choose an API to transfer money.
Capabilities of a Banking API
Banking APIs otherwise referred to as payment APIs or money transfer APIs, are application programming interfaces (API) that facilitate digital money transfers. These digital transactions come in a variety of forms, but in the U.S. they largely facilitate digital money transfers through the Automated Clearing House (ACH) network, in the form of direct deposits or ACH debit and ACH credit transactions, as well as in transferring digital currencies.
Banking APIs are the backbone of many of your financial transactions on mobile devices. From digital wallets to payment processing apps, banking APIs are what support a payment gateway and are digestible bits of code that facilitate the function of one thing—secure banking transaction data exchanges.
In securing these exchanges, banking APIs come with a series of regulations that not only ensure security but also ensure longevity in the product’s uses. One of the core aspects of banking is ensuring compliance and licensing. As a stand-alone business, becoming financially compliant can take thousands of dollars and years to do so. However, banking APIs, which can be implemented into eCommerce and financial services, can speed up the compliance factor and also offload much of the stress of financial compliance.
Banking APIs, as it may be quite clear, are extremely versatile and useful. There are a number of ways in which a banking API can be used. Right now, banking APIs can facilitate a secure login, securely connect a bank account, provide FDIC-insured bank accounts to users, provide a digital wallet space for holding financial information, and also facilitate financial transactions through the cryptocurrency blockchain.
All this baked in a powerful little API? You bet.
Speed of Transferring Money via an API
If you’ve ever used a banking API, then you might have a sense of how the payment app works. Common banking APIs like Paypal typically have set times for how long an ACH transfer might take. This accounts for the transaction approval processes and standard processing timelines. In general, the speed of transferring money through an API will depend not only on the payment API that you decide to use but also on the service that you use.
With any service that you use, there is some lag time associated with signing on and registering with that API. For example, when working with the Paypal alternative Sila and their open banking API, the app user can get set up in 50 hours. Once the setup is complete, then ACH payments and crypto transfers occur along a timeline.
Here are the SIla money transfer timelines for an ACH transfer:
For the /Redeem_sila endpoint, ACH Credit requests received by 5:45 pm (PST) on:
- Monday: funds show up at the other bank on Tuesday.
- Tuesday: funds show up at the other bank on Wednesday.
- Wednesday: funds show up at the other bank on Thursday.
- Thursday: funds show up at the other bank on Friday.
- Friday: funds show up at the other bank on Tuesday.
- Saturday: funds show up at the other bank on Tuesday.
- Sunday: funds show up at the other bank on Tuesday.
For the /Issue_sila endpoint, ACH Debit requests received by 4 pm PST and settled by 4 pm on the day allotted. Sila tokens are then issued at that time:
- Monday: funds leave the other bank on Tuesday morning, settled on Thursday.
- Tuesday: funds leave the other bank on Wednesday morning, settled on Friday.
- Wednesday: funds leave the other bank on Thursday morning, settled on Monday.
- Thursday: funds leave the other bank on Friday morning, settled on Tuesday.
- Friday: funds leave the other bank on Monday morning, settled on Wednesday.
- Saturday: funds leave the other bank on Tuesday morning, settled on Thursday.
- Sunday: funds leave the other bank on Tuesday morning, settled on Thursday.
Sila’s API enables near-instant money transfer options through the ACH network, drastically speeding up this process, especially compared to alternative banking APIs like Paypal. This not only increases our experience with sending money digitally worldwide, but it also supports open banking!
Handling money much faster than a wire transfer, banking APIs can increase the capabilities of digital money transfers and improve money transfer systems worldwide.
Security for Money Transfer APIs
Money transfer APIs exist because they can virtually guarantee security. One way in which common financial APIs do this is by outsourcing security to businesses that only do that one thing.
For example, Sila’s partner Alloy facilitates Know Your Customer (KYC) and Know Your Business (KYB) verifications. In doing so, Sila does not have to hold on to that sensitive customer information and instead allows Alloy to do this.
As a trusted third-party, and one that only handles secure customer information, Alloy can keep this information protected. They are already prepared for PCI-SSD compliant hardware and software, techniques in storing sensitive financial data, and other regulatory compliance.
API security is extremely strong. APIs themselves are also trustworthy for sending and receiving secure banking data. Using only a private key as the way to gain access ensures that access to the API is better protected. This makes an API a promising payment solution, especially for scalability and long-term security.
Additionally, APIs can facilitate the transfer of stablecoin like the patented SILAUSD stablecoin. Transferring that stablecoin along the blockchain allows users the ability to fast and secure international money transfer service with a borderline fiat currency and the protection and reliability of the blockchain.
Alternatives to an API for Transferring Money
Right now there aren’t many progressive alternative payment methods that are comparable to transferring money through a bank transfer API. In fact, open banking and banking APIs are the alternatives to more traditional methods of sending money through a bank and financial institution like a credit union.
Sila is transforming the way that banking APIs can be used, though, and in doing so are contributing to true open banking. As one of the first businesses to take hold of cryptocurrency as a valid payment method and implement it into their banking API, through their patented stablecoin, Sila shows fintech firms that smart and user-friendly crypto transfers are possible.
Furthermore, Sila is an SDK package, so implementing the Sila payment API into your current financial system is easy. Developers can access the SDK to build a fully white-labeled and customized banking API for your business! With such versatility available, SIla is transforming the way we move money.
Faster and more reliably than ever, digital banking APIs provide security and more instant money transactions. See today how fitting Sila’s API into your financial system can improve the way you move money.