Dwolla, a leading account-to-account payment services provider, announced the expansion of its latest solution, Dwolla Connect, by integrating it with the open finance ecosystem.
This integration helps Dwolla Connect clients securely transfer open finance data to the Dwolla platform, unlocking new capabilities like bank verification through trusted third-party providers (including MX, Plaid, Finicity – Mastercard's U.S. open banking arm – and Flinks). It also marks a significant step forward in secure payment experiences, bringing together the best of data protection and payments automation for finance and technology teams at mid- to enterprise-sized companies.
At the heart of this new feature lives the Dwolla Secure Exchange Solution, a tokenized solution Dwolla released in July 2022. The Secure Exchange Solution prioritizes flexibility, provides a deeper connection into the open finance ecosystem and unlocks expanded functionality within the Dwolla platform in the future. This allows Dwolla to be more interoperable with third party providers, so clients can choose which providers they want to work with and configure a solution to meet their needs.
"87% of consumers utilize open banking in the United States today, which is why it's critical for businesses to embrace this aspect of digital transformation," said Skyler Nesheim, CTO of Dwolla. "This latest innovation for our Dwolla Connect solution empowers clients to simply attach bank accounts and process payments by securely exchanging tokenized information. We are simultaneously simplifying the payment process and giving them secure access to critical financial data."
Key Features of Dwolla Connect + Secure Exchange Solution:
Enhanced Security: By exchanging tokens with trusted partners, Dwolla Connect clients can share information securely, protecting it from malicious actors and ensuring data integrity.
Flexibility and Scalability: The Secure Exchange Solution prioritizes flexibility, enabling rapid onboarding of new data providers.
Simplified Integration: With minimal engineering resources, businesses can leverage the power of Open Banking, offering users a secure, tokenized experience without the complexities traditionally associated with such solutions.
"We believe in working across the industry to foster a truly open environment that puts the customer at the center and enables better money experiences," explained Don Parker, Executive Vice President of Partnerships, MX. "Embracing Dwolla's Secure Exchange Solution is another step in embracing an open finance ecosystem that champions both security and innovation for the good of consumers and businesses. Together, we're helping usher in a new era of digital financial services that fosters inclusivity and accessibility."
"Mastercard's commitment to data responsibility and instilling trust in the digital ecosystem is at the heart of our partnership with Dwolla," said Jess Turner, executive vice president, Global Open Banking & API at Mastercard. "We are delivering the consumer-permissioned financial data needed for innovation, and we do it in the way our customers require, and consumers have come to expect — simply, safely and securely."
"Being adaptable and collaborative is essential in today's ever-changing open banking landscape," says Yves-Gabriel Leboeuf, CEO at Flinks. "Dwolla's Secure Exchange Solution does a fantastic job bringing together financial institutions and data providers through their secure, tokenized interface. Partnering with innovative leaders like Dwolla helps us push the boundaries of what's possible in today's financial industry, specifically payment initiation in the US. Together, we're driving change while making financial services smarter, more secure, and accessible for everyone."
"Plaid and Dwolla have a longstanding partnership to deliver bank payment solutions and were among the first to offer a tokenized framework through Dwolla's Secure Exchange Solution," said Tamara Romanek, Head of Partnerships at Plaid. "Together we can offer companies a seamless Account to Account (A2A) payment solution that includes account authorizations, identity verification, and even transaction risk assessment through newer products such as Plaid Signal. This allows joint customers to offer faster, more secure bank payments for a variety of use cases and we're excited to be bringing these solutions to the market together."
Dwolla's Secure Exchange Solution simplifies operations, enabling ongoing enhancements of its features. As Dwolla expands, its commitment to client flexibility and scalability remains unwavering. Clients can seamlessly configure solutions tailored to their needs, all within the unified Dwolla integration framework.