Astra And Cross River Bank Team Up to Enable Money Transfers Between Debit Cards

Building on the concept of transferring money directly from a bank account to a debit card, Astra Inc., a provider of bank-to-bank transfer technology, has introduced an application programming interface that enables money to be transferred from one debit card to another using the debit card networks. 

The API, which Astra launched Thursday in partnership with financial service technology provider Cross River Bank, will enable software developers to process the transfers without the need for settlement accounts or for developing reconciliation operations. Astra says the API is PCI-compliant by default, which ensures developers will have limited liability for sensitive card data. PCI is a reference to the Payment Card Industry data-security standard.

The ability to transfer funds between debit cards differs from a bank-account-to-card transfer in that the card-to-card transfer settles instantly. In addition, an account-to-card or account-to-account transaction occurs over alternative payment networks, such as the automated clearing house, which can make the transfer slower and riskier, according to Astra chief executive Gil Akos. 

“Depository accounts and debit cards are very different (yet intertwined) payment instruments, and fintech developers are looking for more diverse and functionalized payment options to fit their product needs,” Akos says by email. “Our mission is to facilitate the movement of cash between accounts, and debit transfers are a huge step towards that universal solution.”

From Cross River’s perspective, the API creates a point of differentiation for fintechs such as Astra by enabling them to offer their clients a way to move money using the debit card payment networks, as opposed to the automated clearinghouse, which is typically used to facilitate account-to-account transfers.

Launched in 2008, Cross River provides a secure API-based banking platform, as well as a suite of products enabling lending, payments, risk management, and banking-as-a-service. Astra’s proprietary API allows developers to embed financial automation within their existing products.

“Astra chose to partner with Cross River to develop this innovative solution, and with our new product, we can leverage the experience of Cross River and combine it with our work in risk mitigation and automation to make fast transfers on the debit network more streamlined and efficient than ever before,” Sam Morgan, chief operating officer at Astra, says in a prepared statement.