Here at Sila, we have been a part of the fintech revolution. We see sending money not only as a means to an end but something which should be easy and allow for smoother business transactions.
With the growing importance of digital money transfers and banking APIs, the B2B or business to business money transfer API makes intuitive sense. If you are growing a business relationship with a burgeoning partner, the last thing you want to deal with is troublesome money transfers or have to jump through multiple hoops to complete a simple money transfer transaction. B2B payment technology can help solve this problem.
A B2B money transfer API might operate similarly to standard money transfer APIs, but it comes with distinct advantages that businesses can reap. Read on to learn more.
How B2B Money Transfer APIs Work
B2B or business to business money transfer APIs are application programming interfaces (API) that allow financial transactions to take place within seconds. Financial institutions can connect to the API as a secure endpoint so that the financial transaction details are fully secure.
When using a general money transfer API, individuals typically plug in their personal data which then gets verified. Verification is necessary for identification purposes, and also to ensure that the bank account that the individual is sending money from is theirs. Other verification methods are necessary as well, including verified secure bank account linking, and an insured financial institution is usually used to secure any cash funds that sit in the user account.
For B2B transactions, processes work similarly to general money transfer APIs and to P2P transactions. The only difference is the intended market and therefore the use of services that are required.
For example, the B2B money transfer API might use Know Your Business (KYB) verification instead of Know Your Customer (KYC) to verify the user identity. It would also allow bank account linking for business accounts, which is notoriously difficult to do for payment gateway apps. Because businesses on average transfer more money daily, the daily limits for sending money are higher, cash insured is higher, and the amount of money held in pending is higher.
Other differences include the ability to allow more than one individual access to the B2B banking API, and the ability to remember payees or businesses that this account has been sending money to.
Benefits of B2B Money Transfer APIs
You’ll want to adopt a B2B money transfer API if you are conducting business with partners on a regular basis. With a B2B money transfer API, the API can usually be integrated into a standard payment system but works around the hassle of providing all the provider banking information to the sender. Therefore, businesses can bypass fee or percentage-based services and send B2B payments directly to their business partners.
This is one of the biggest benefits of using a B2B money transfer API as a payment method. By integrating them into your payment system, you have a direct connection to your partners, removing additional complications. Quickly request money and your partner will pay at their convenience. Or, hold money in the account so that sending it is a cinch.
B2B money transfer APIs are relatively affordable, so businesses can bypass hefty fees that accumulate when sending through generalized services. If businesses need to send a cross border payment, then a B2B payment is far more affordable than a wire transfer.
B2B payments also allow extremely fast payments, since verification is no longer needed after the initial set up. These APIs are commonly in the form of apps, so businesses can conveniently send money anywhere they are, so long as they have access to the internet.
In general, bank transfer APIs signify more open banking, as more individuals are able to connect to banking APIs and send money anywhere in the world. No longer are we tied to brick-and-mortar financial institutions!
Best Practices for B2B Money Transfer APIs
If you want to set up a B2B money transfer API for business transactions, then you’ll need to ensure that the API is compatible with your financial payment systems and for the partner. You’ll also want to make sure that you trust the partner. While you aren’t sharing sensitive information directly with them, you’ll still need to be careful and follow guidelines associated with sending bank transfers.
If you are developing a B2B money transfer API, then you have full control over the specs and user interface (UI). Therefore, be sure to make the UI easy to use and navigate. You don’t want the app to be difficult to navigate as that would defeat the purpose.
Developing an API through Sila is simple and allows you to have fully secure third-party verification processes already set up. Sila uses verified third-party services to provide secure bank account linking, KYC/KYB verification, ACH transaction capabilities, and insured cash holding with their FDIC-insured bank, insured up to $250,000.
When developing an API, you’ll want to use the security settings necessary for banking APIs, which include encryption, authentication, OAuth/Open ID, and system protection like throttling and quotas.
Sila also allows users to send money through blockchain technology with its patented stablecoin – SILAUSD. Cryptocurrency is secure, but measures need to be taken in order to keep these transactions secure. Each user will need to keep both the API private key and the cryptocurrency private key safe as that private key is what keeps hackers out and your money safe.
Best B2B Money Transfer APIs
If you’re shopping for a B2B money transfer API, you might find that many of them are expensive to operate daily, since they come with high transaction fees or percentages. Instead, you should consider building a white-labeled B2B money transfer API.
With a custom-build and white-labeled API through Sila, you have full control over the API integration, the user interface, and the services offered. You are also affable to offer more to your user base as the app allows for cryptocurrency transfer pegged to the penny.
Sila users can send money along the blockchain, send an ACH payment, and save a lot of money in transaction costs. Sila transactions fees are mere pennies compared to competitors and allow for simplified cross border payments as well. It also taps into the ACH network for simplified ACH payment processing.
With the ultimate control of a simplified and fully secured money transfer API, you can provide more options for B2B money transfer APIs. See today how Sila can transform the way you move your money!
How Blockchain is Driving Mobility
Blockchain mobility webinar recap: Decentralized finance, how DLT is unlocking true protentional for connected machines, and the possibilities of smart connected cities.
Best Built-In Fraud Monitoring Features to Fight Fraud
The API is a powerful tool for monitoring your fraud. It offers many features that can help you identify and stop fraud before it becomes a problem.
Understanding Financial Platforms: Dwolla vs Sila
Dwolla is a financial platform entrepreneurs can use for fintech innovation. Here’s the breakdown of Dwolla vs. Sila.
Using an International Money Transfer API
Sila’s innovative international money transfer API can expedite international payments and open up global financial systems.
Peer-to-Peer Money Transfer API
Peer-to-peer or P2P money transfer APIs allow individuals to pay bills, friends, and services. See why Sila can help you create the next best P2P payment API!
Understanding the 9 Major Types of Financial Institutions
In today’s market, financial institutions help businesses and individuals with money services that range from deposits to withdrawals, money transfers, lending, investments, and so much more.