Finding a bank partner isn’t always easy. When you’ve got a good idea and need a bank partner to get that good idea off the ground, you’re often looking for a specific product. Add the amount of money you can afford to spend and the number of regulations that need to be followed in the financial industry, and this process starts to be cumbersome.
Payment APIs like Sila make it easier for businesses to provide simplified financial products. By tapping into the power of the Sila fintech marketplace, you can easily get your business up and running.
There are a number of banking partners to choose from. Lithic is just one example. Lithic differs from Sila in a number of ways. And that’s one of the reasons why we’ve partnered with Lithic for card issuance.
We’ve written this blog to help you understand the differences between payment company Lithic vs. Sila.
Understanding Payment Software Services
As you’ll see below, the range of features available in payment software services like Sila and Lithic can range widely. However, in general, payment software services will help companies gain access to critical financial infrastructure, code, compliance, and customer support.
The financial world is complicated, and fintech companies like Sila were built to help. Not only will they give more control to smaller companies who want to create niche products, but they also expand what is originally possible.
Payment software services typically include digital bank account creation, creation of fintech support APIs, identity verification services, the ability to send money digitally or to connected banks, and access to digital and physical debit and credit cards.
What is Lithic?
Lithic is a payments software service that provides users with payment infrastructure (API code) and custom debit cards. Their financial service products aim to make paying online better. With their engineered financial service products, Lithic comes in different “sizes” so that different sized businesses can get off the ground.
Lithic offers three products: Starter and Enterprise. Here’s how they compare:
Starter is built for companies to get up and running quickly. With this package, users can gain access to a sandbox and issue real-money cards all in one day. Card spends give back 0.40% and clients can access the API endpoints for a number of cases.
There are some fees associated with Starter, including 50 centers per virtual card, and 1% and 30 cents on international transactions. Oh, and you get 12 free “card creates” a month.
Their other option, Enterprise, is built for companies who know what they want and need full-service financial services. Enterprise clients get virtual and physical card issuing with more use cases and better scalability. This is obviously the fully unlocked API and it comes with no pre-set program limits and an account manager from Lithic.
The nitty-gritty shows you that Starter comes with basic virtual cards, no KYC/KYB support, unbranded digital wallet cards, limited card control, some compliance provided by Lithic, and full data access.
Enterprise gets you a higher revenue share and a few trade-offs, including full customer support, full data access, access to the full card number, compliance, pin numbers for “ARM” access, auth stream access, custom art capabilities on the digital wallet cards, cardholder level (ACH), and more.
Here’s the Sila Difference
The Sila difference is one that our clients recognize instantly. While Sila does not provide users with physical cards (yet!) they grant them access to extremely useful and powerful technology.
Sila is a fintech expert who can help your company get up and running with full financial infrastructure. Users get access to the Scale or Grow ACH API, Wallet API, and expanding APIs to be able to create a unique app with the ability to send, receive, and store money.
The biggest draws of Sila include:
- An FDIC insured bank account, with coverage up to $250,000 per individual account owner
- Access to the NACHA ACH transfer network
- International funds transfer user the SilaUSD stablecoin
- Access to the fintech marketplace for ease-of-use
Sila is out-of-the-box ready, meaning that new users only need to test their API in our available sandbox and be on their way. Each API is customizable and white-label, so you don’t have to worry about anything there.
Lithic vs. Sila
Comparing Lithic to Sila is a little like comparing apples and oranges. Yes, both are financial software services, but Sila goes above and beyond in terms of functionality and out-of-the-box support.
There are clear benefits to both, still. For example, Lithic is a company built on providing cards. This includes digital and physical cards for making online payments easier. So if you are a business that relies on issuing virtual or physical cards, then Lithic might be what you’re looking for.
Lithic users can use the cards, ACH transfers, and access an FBO account. However, you have to go with the Enterprise option to even gain access to KYC/KYB in any regard. Unfortunately, no built-in, “use your own” or KYC exemptions are allowed on the Starter.
This is totally fine and up to Litchic. However, to provide security for every user experience, all of our accounts have access to KYC, KYB, document verification, and compliance-as-a-service. It all comes built-in with the Sila API packages.
Additionally, Sila partners with Lithic in order to provide card issuance, in addition to the many other benefits that you get with the Sila platform. If you’re looking for card issuance and nothing more, then you can stick with Lithic. However, if you’re looking to expand your offerings on top of card issuance, then Sila is the right choice.
Take Your Idea to the Next Level With Sila as Your Partner
We’re more than just a payment vendor—we’re your payment partner. As your partner, your success is our success. And we live and breathe that!
With Sila as your partner, you can tap into our expert team who can help you navigate the challenges of financial compliance. You can also offload a lot of that burden onto us!
And with assurances, like FDIC insured bank accounts up to $250,000, then your clients will trust that you have their back.
There are so many other perks too, like access to our SilaUSD stablecoin, pegged to the US penny, and direct access to the US financial and banking system, and the ACH money transfer system.
See today how Sila can help you take your business idea to the next level!