Nowadays, cross border payments are getting easier and easier. With services like a mobile wallet, digital wallet, and payment gateway, we have more payment method options than ever before.
So while ease has increased, has affordability? Can your business use an API (application programming interface) for global money transfer? And how can your business use this technology to your advantage?
If you work with a lot of consumers, either in-person or online, who need to pay with a different currency, it is likely that you have experienced troublesome international bank transfers. But with an international money transfer API, you can facilitate the transfer of money in any currency faster and more affordably than ever.
See how an international funds transfer API like Sila can transform the way you move money.
Implementing an International Money Transfer API in Your Existing Payment System
An international funds transfer API is a web API that allows the user to pay in select currencies even if the baseline currency is different from the one consumers want to pay in. Largely this type of payment service will fit in perfectly with an online payment system, but it can also be integrated into an in-person POS as a viable online payment solution.
It makes sense that you would want to allow international payments in your payment system. Doing so allows you and your business relationships to move away from credit card payments or traditional banks, which can wreak havoc on an internal financial system. Using an API integration that facilitates this exchange in a more affordable way means it is no longer necessary to require a credit card for every transaction, minimizing credit card fees and debt ratios. With a secure API or application programming interface, you are provided more secure connectivity and the protection of sensitive data.
APIs are typically accepted into web-based payment applications, which you are likely familiar with. From mobile payment processors to digital wallet payment transfers, web-based eCommerce applications, and in-person but online payment processors, each payment option might use an API to facilitate some type of transaction verification and processing, but this is not always the case. You might have to request that a special API be created to integrate into your web-based solution.
In general, you will want to begin to convert to an online payment system if you are not yet using one. Online instant payment is the way of the future, and if you have not allowed any type of online payment for your brick-and-mortar, your business will fall behind.
If your business processes mobile payments, you can integrate an international money transfer API by creating your own payment processing platform through the white-labeled Sila SDK and app-building program. With the tools that Sila provides, the opportunity to build your own payment processing platform is in your hands.
Sila’s service is a ready-to-make digital code (with multiple SDK languages) that offers banking-as-a-service and compliance-as-a-service to anyone who wants better control over how their money is handled. Sila also uses a patented SILAUSD stablecoin, so you can process all your payments in-house (white-labeled) and in an international or fiat currency.
Process of an International Money Transfer Using an API
When you think about “how” an international money transfer works in an API, it’s actually relatively simple. This is because banking APIs were designed to keep the digital transaction process simple, easy to operate, and with a minimal amount of working parts.
To understand the process of the international money transfer in an API, it’s best to see it as an example using Sila’s code.
Here, in the following lines of Node/Javascript code, you can see how Sila can be installed:
/* Suported versions of Node10 LTS12 LTS14 LTS*/// Installation> npm i sila-sdk// Import the package// Common JS syntaxconst Sila = require('sila-sdk').default;// ES6 module syntaximport Sila from 'sila-sdk';// Initialize the applicationconst config = { handle: 'app.silamoney.eth', key: "Your app handle's private key",};Sila.configure(config);
Then, you can create a wallet using these lines of code:
// Generate a new walletconst wallet = Sila.generateWallet();console.log(wallet.address); // Public wallet addressconsole.log(wallet.privateKey); // Private wallet key
Like many SDKs, packages are imported into the API interface. So whenever your API needs to do something, or a request is submitted, the API then ‘talks’ to the recipient endpoints in order to send and receive information.
Through the user set up, the SDK then connects its endpoints to Sila’s partner programs, which facilitate things like Know Your Customer/Business (KYC/KYB) account and identity verification from Alloy, so that users can go through the process of being verified and sending bank transfers. Sila is not considered open banking because the third-party financial service providers are partners and remain third-party. In this way, Sila can securely outsource the processing of sensitive banking information.
Sila’s international money transfers are then allowed because it uses the SILAUSD stablecoin. Any currency can be converted into the SILAUSD stablecoin. So users only need to account for the currency conversion when sending money, rather than hefty international transfer fees. Users then transfer SILAUSD tokens, which are pegged to the U.S. penny. Once the payee receives that transfer, they are then able to “receive” that money in the currency of that choice.
Whenever money is to be transferred internationally, the originating user must exchange their own currency into SILAUSD stablecoin. This process is simple, happens in less than 24 hours, and can be re-converted into the currency of the recipient’s choosing. This saves each user valuable money and time savings.
When sending an international wire transfer, for example, each user might be required to pay to send money internationally, often upwards of $15 to $45 each! Sending large ACH payments internationally isn’t really possible on a B2B basis, so users must find a way to get into the ACH network and transfer their existing currency into the U.S. dollar. After that, the process can often be costly. An international money transfer API can mitigate all of that.
Securing the International Money Transfer API
Whenever you are sending money, there is a high level of risk associated with it. Fraudsters attempt to steal money by stealing login credentials, sensitive banking information, sensitive private information, and by hacking into broken or unprotected APIs. Therefore, security is of the utmost importance when it comes to money transfers.
Sending an international payment is similarly important. In the case of the Sila API, users are approved and verified through a secured endpoint using a verified Sila partner. Four Sila partners facilitate the bank account linking, ID verification, account verification, stablecoin transfer, and the fund holdings through an FDIC-insured bank. So neither Sila nor the user is saddled with the task of security. Instead, the security functions through the use of the international money transfer API itself.
Users are transferring their money into the SILAUSD stablecoin and cryptocurrency is one of the most secure ways to send information and/or money. All users need to do is keep their private key safe.
Security needs to focus on standard security measures for API security and outsourcing sensitive information. The API is secured through things like encryption and authorization modes. Users are authenticated when registering for the API. The API also has built-in security measures like requiring HTTPs and OAuth, for example. Otherwise, the API keeps itself secure by connecting with only a few endpoints through its code and, in Sila’s case, its partner program.
Securing an international money transfer API will depend on the unique parameters of the API in-use. So be sure to connect with that API’s documentation to make sure that the security protocols are being followed appropriately.
Customer Fees Associated with an International Money Transfer API
A money transfer service is likely to charge customer fees associated with each individual transfer. If you are using common international money transfers like PayPal, you might be faced with fees as the facilitator of the financial transaction. In B2B transactions, both parties are often subjected to fees.
Fees associated with an international money transfer API are likely to be a small percentage of the money transfer amount, however, these details will vary based on the service you use. And fees add up, especially if you are sending a payout as they are likely to accrue a large percentage of international money transfer fees and fees for converting into a foreign currency.
There are, of course, pros and cons for using each service type. For example, popular money or bank transfer service PayPal has only 130 country destinations that money can be sent to, however, the recipient does not need a PayPal account in order to receive that money. They will also not be required to pay a fee, but the payer will.
Sometimes the transaction fee may be set as a flat fee. The payer might pay $5-$10 for sending money internationally, even if through an API. And this is on top of the foreign exchange rate. Depending on the receiving bank, sometimes the recipient also has to pay this amount. Depending on the API that the banking service uses, the financial institution backing it, and the number of partners that are needed to make the transaction, you could be losing a lot more money than expected.
By choosing a PayPal alternative like Sila, you virtually eliminate these fees. The only caveat is that the receiver needs to have a Sila account, which is free to have and simple to interact with. Sending and receiving money simply requires that money is converted into and out of SILAUSD stablecoin.
When using Sila’s ACH API, ACH transfer fees are only 0.60% on the starter plan, capped at $4, with the ability to get as low as $0.10 per transaction on the Launch plan. Same-day ACH batch payment processing is also provided for $0.20 per transaction. Any other international transfers using the SILAUSD token is only charged at a rate of $0.15 per transaction. That’s it!
Now, cheaper than ever, users can send money into the U.S. markets without losing hundreds to thousands of dollars in transfer fees. See today why Sila can change the way you send money