The ability to send money to friends, family, or other businesses is important to the many Americans and visitors who stay, work, and play in the United States every year.
However, as with any country’s financial system, strict checks keep who is allowed in and user activity in line. Because of this, it has been notoriously hard to push through into the market with powerful money transfer technology.
Now, however, more businesses are able to get started with an ACH payment API app through Sila and other payment infrastructure services. Sila’s money transfer technology is available as a service, so business owners can take their dreams to market as a reality and provide valuable financial services.
If you think that there are enough payment apps out there, think again. There are at least 7 reasons why you should hop into this profitable market with an ACH payment API through Sila. Number 7 is the last on the list, but definitely our favorite!
1. The Profit
You may not automatically correlate high-profit yields with financial services; however, with the ability to purchase and rent payment infrastructure as a service from companies like us here at Sila, then the profits start to really show.
Payment infrastructure services, or payment-as-a-service, as we will see, allow more fintech startups to emerge with the latest financial technology at an affordable cost. Access to this technology, the company’s compliance experts, and other scalable financial features make starting an ACH payment API far easier than before. And since you are able to rent this technology and key components of banking compliance, then the profit yields are better.
With a payment-as-a-service business, you can tap into the use of the company’s banking status or their bank partnerships. In the case of Sila, we are a bank agent with Evolve Bank & Trust, which means that each of Sila’s clients can take advantage of Evolve’s money transmitter licensing and the necessary compliance features, like KYC processes and SARs filing so that they don’t have to pay this themselves.
With PaaS on your site, your profit comes far easier than ever before.
2. The Ease of Startup
Money payment APIs can now be created within a matter of weeks. Previously, starting a payment API required months of certification, securing funds for licensing and statuses as a financial institution, and the time it takes to audit and more, getting started as a payment API took way too long.
Now, even compared to some products, it’s faster to start up with a financial services app and offer core financial services that people are looking for within only a few months.
And with ACH technology like what Sila offers, you can offer features that are only available with select customers. Tap into a number of financial automation features like recurring billing for more than just credit card transactions and automated fraud support for the ultimate financial technology.
3. Affordable Start up Costs
Lots of entrepreneurs shy away from big startup costs because of a lack of experience handling this amount of debt, limited experience marketing a company, and the unknown of whether or not it will be successful.
Well, the good news with an ACH payment API is that startups don’t have to worry about the excess cost. The majority of the startup cost for any ACH payment API through Sila is the time it takes to build the app. While you build the app in the testing sandbox, you don’t have to pay for the app to be functional, which means you don’t have to pay these capital costs until you launch.
This saves you thousands of dollars in startup which were normally incurred when you needed to become a bank agent and submit thousands of dollars in money transmitter fees and other regulatory compliance costs upon startup of any financial services business.
4. Affordably Operational Costs
Even after startup, fintech firms with a payment app won’t lose much sleep due to high operational costs. Running your payment API won’t cost too much month-to-month when you aren’t required to commit to managing compliance full-time, paying regular fees for money transmitter licensing, or financially commandeering data storage and security best practices.
With low operational costs and individual ACH processing fees baked into all the user actions, companies can actually seek a generous profit. By starting an ACH transfer API, you can allow your users the ability to:
- Send and receive an ACH debit and an ACH credit
- Access streamlined ACH payment processing
- Integrate ACH transaction requests for mobile apps, software integrations, and eCommerce transactions
- Access the ACH Network
- Use an affordable payment processing
- Also use a payment gateway, which can be useful for corporate accounts, individual merchant accounts, and affordably processing recurring payment transactions, among others
The operational costs can be kept down to a minimum so that you can focus on expanding your features reasonably while maintaining the bottom line.
5. High Rates of Success
In the past, most businesses have struggled to succeed with their payment API due to high return rates, noncompliance fees, and overhead costs. However, financial services businesses are finding a higher rate of success than in the past.
This is another great reason to start your ACH transfer API soon. With higher rates of success, this can equate to easier wins for your business, allowing you to establish your business as a leader in the market quickly.
Since you’re more confident to make this decision, this means that your business can introduce much-needed money transfer technology into the market. Grant users access to a business bank account and ACH processing for less cost and less risk. This can be key for a small business owner who wants to either look the part or need access to core financial infrastructure but can’t afford enterprise solutions.
Do more than just service small business owners. Marketing financial technology for more everyday transactions makes sense. For example, we’re no longer accepting checks at work and instead go to ACH direct deposit transfers. In the same vein, encourage clients by moving away from paper check processing and into electronic payment technology.
6. Partnership Abilities Make for Easy Marketing
Whether you’re just starting out or you’re looking to grow your offerings, businesses in fintech can seek out partnerships to provide more products and secure more revenue. Partnerships with fintech firms invested in open banking make sense for companies who want to introduce an ACH payment API into the market.
Through fintech partnerships, you can easily modify your API for ACH integration into more financial software, expanding your products use cases and opportunities. Moreover, when you work with a financial company like Sila, you have access to a wide range of partnerships that are already available.
Tapping into fintech partnerships is easy marketing and allows you to expand your financial features when your clients are ready. Add credit card processing, business-branded credit cards or debit card, and more affordable payment processing with the ACH transfer API technology.
7. Expanding Available Financial Features for Users All Over the World
The biggest and best reason to start an ACH payment API this year is the ability to add unique features, contributing to the available financial features for U.S. and global users.
When it comes to sending money in the U.S., we’re looking to more startups to create some of the desired financial flows. These new financial features are desperately needed as they open up new opportunities for people to access money. This is especially important in at-risk communities, for ex-pats, and for businesses in industries where it is notoriously hard to gain entry into the financial communities.
No longer do you need to operate fully as a bank to accept customer payments more affordably. Tap into the payment gateway technology at Sila. With Sila by your side, you can create an ACH payment API that expands the growing financial offerings in the U.S. See what’s possible today with Sila!