Dwolla extends Open Finance partnership with MX

This collaboration on a tokenized offering provides Dwolla’s clients and reseller partners a flexible way for them to access account verification services using MXapi Processor Tokens. MXapi Processor Tokens facilitate secure exchanges with mutual partners without the risk of using sensitive data or the need for third parties in money movement.

Shared clients and partners between MX and Dwolla now have access to MXapi Processor Tokens, which remove the need for these clients to store sensitive user data, making it easier for mutual partners to easily access money movement datasets and access account verification services. MXapi Processor Tokens use the Secure Exchange solution technology that places emphasis on data protection coupled with the ease of exchanging tokens with various partners.

Dwolla’s expanded partnership with MXcomes quickly on the heels of the introduction of the Secure Exchange solution. These recent initiatives further Dwolla’s investment in Open Banking technology alongside their announcement of their support of the Same Day ACH transaction limit increase and their Virtual Account Numbers (VANs) feature.

Expanding the partnership

The two companies initially partnered in July 2021 to automate account verification tool experienceMX. The service offers an extension to its intelligent account verification solution, available through the MXconnect widget or MXapi, making it easier for customers to securely connect any depository account.

Through its partnership with Dwolla, MX has automated the micro-deposit verification experience for clients by removing the need to manage their own ACH and micro-deposit processes. This approach gives expanded coverage to FIs of all sizes, giving customers secure access to their financial data.

Past activity

In early September 2022 MX has signed a reseller agreement with MeridianLink to integrate the former’s Instant Account Verification (IAV) into MeridianLink Opening. The solution allows consumers to open and fund new deposit accounts quickly. By integrating with MX, consumers can use fast verification technologies to provide the information they need to verify and connect their external financial accounts, which ensures a more seamless user experience, mitigates fraud and risk, and increases conversion.

According to MeridianLink’s, by integrating its MX’s IAV solution into MeridianLink Opening, the consumers served by their FI clients can quickly verify their account information to fund new deposit accounts, which will reduce drop-offs during the onboarding process and ultimately help the bottom line of the institution.

Moving on to Dwolla, the company released Virtual Account Numbers (VANs) to unlock the connection between banks and fintechs. Using Dwolla's technology, businesses can transfer funds to and from a Dwolla Balance (digital wallet) directly from any ACH-enabled platform using a unique account and routing number. This is where VANs streamline and simplify workflows. VANs allow a Dwolla Balance to receive funds from multiple sources, such as payroll systems and mobile wallets, not just bank accounts. Funds can also be tracked based on which VAN the sender used.