Sila Introduces Real-Time Access to ACH Debits on Platform

digital wallet

Sila has introduced a product that offers customers real-time access to ACH debits made to its platform.

The new Instant Settlement offering eliminates the need for companies to rely on their own capital or endure the delays of traditional ACH debits, the FinTech company said in a Thursday (Aug. 10) press release. Sila pre-funds the consumer’s digital wallet within seconds.

“With Instant Settlement, we are revolutionizing the way businesses and individuals access and manage their funds,” Sila Co-founder and Chief Strategy Officer Shamir Karkal said in the release.

Sila’s new product is applicable to 100% of ACH transactions on its platform, according to the press release. The company maintains risk management approach by requiring customers to maintain sufficient funds in a reserve wallet to cover any potential return risks.

Instant Settlement provides a compelling option for scenarios where ACH is the preferred method, but return risks are minimal, the release said. Suggested use cases include payroll processing, back-office money movements, B2B transactions and cash transactions at brick-and-mortar locations.

The product helps businesses and consumers access and manage their funds more efficiently, opening up new opportunities and avenues of revenue, per the release. It joins a wide range of products offered by Sila, including ACH payments, digital wallets and more, per the release.

“We understand the importance of transaction speed in today’s fast-paced business landscape, and by offering Instant Settlement, we are providing our customers with a competitive advantage that sets them apart in their respective industries,” Karkal said in the release.

PYMNTS research has found that fast transactions and an expanded array of available payment options are the leading reasons why consumers gravitate to FinTech providers.

Transfer speed is the leading reason, cited by 27% of consumers, followed by the availability of a wide variety of payment and fund transfer options, which is cited by 26%, according to “Issuers Report 2023: Fintechs’ Instant Payments Mismatch,” a PYMNTS and Ingo Money collaboration.

The report also found that among consumers who reported issues when depositing money into their accounts, 41% said that the guarantee of good funds/speed was the issue they faced most often. Among those who reported problems when moving funds out of their accounts, 28% said that was the issue.