Dwolla announces Open Finance integrations

Tuesday 31 October 2023 13:01 CET | News

US-based payments platform Dwolla has announced the integration of Open Finance into its recently launched solution.

Through this integration, Dwolla Connect clients can securely transfer Open Finance data to the Dwolla platform, enabling new capabilities such as bank verification through trusted third-party providers, including MX, Plaid, Finicity, and Flinks. The launch also marks a step forward in secure payment experiences by merging data protection and payment automation for finance and technology teams at mid-to-enterprise-sized companies.

US-based payments platform Dwolla has announced the integration of Open Finance into its recently launched solution.

The new solution features the Dwolla Secure Exchange Solution which prioritises flexibility, provides a connection into the Open Finance ecosystem, and enables expanded functionality within the Dwolla platform. Through this, the company can be more interoperable with third-party providers, with clients being able to decide which providers they want to collaborate with and configure a solution that meets their requirements. 

The integration’s capabilities

According to officials, the recent integration for Dwolla Connect allows clients to attach bank accounts and process payments by securely exchanging tokenised information. The company aims to simultaneously simplify the payment process while offering clients secure access to necessary financial data. Some of the features of Dwolla Connect and Secure Exchange solution include: 

  • Improved security due to clients being able to share information by exchanging tokens with trusted partners;

  • Flexibility and scalability as the solution enables accelerated onboarding of new data providers;

  • Simplified integration as businesses can use Open Banking to offer users a secure, tokenised experience without the complexities traditionally associated with these types of solutions.

Representatives from Dwolla’s partners stated that the solution brings together financial institutions and data providers through a tokenised interface, while also supporting their joint commitment to improving financial services and making them more accessible. Moreover, Dwolla’s collaboration with Plaid allows the two companies to provide a simplified Account-to-Account (A2A) payment solution that includes account authorisations, identity verification, and transaction risk assessment through products such as Plaid Signal.

Dwolla’s Secure Exchange solution also simplified operations, allowing ongoing upgrades of its features. Clients can configure solutions custom to their needs within the unified Dwolla integration framework. 

Past developments from Dwolla

Recently, Dwolla announced the addition of Open Finance solutions provider MX to its Secure Exchange partners. Through this collaboration, Dwolla’s clients and reseller partners receive a flexible method of accessing account verification services using MXapi Processor Tokens. MXapi Processor Tokens enable secure exchanges with mutual partners without the risk of using sensitive information or the need for third parties in money movement.

At the beginning of August 2023, Dwolla launched Dwolla Connect, an API solution addressed to businesses to enable A2A payments. Being addressed to mid-to-enterprise-sized businesses, the solution intended to simplify the process of replacing legacy technology with modern infrastructure. Through this, the company aimed to improve the management and reconciliation of payments across several financial institutions.

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Keywords: Open Finance, Open Banking, financial institutions, bank account, online security, security token
Categories: Banking & Fintech
Companies: Dwolla
Countries: United States
This article is part of category

Banking & Fintech


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