Dwolla launches a solution that facilitates A2A payments

The new API solution is addressed to mid-to-enterprise-sized businesses. According to the official press release, the new product strives to simplify the process of replacing legacy technology with modern infrastructure, thus improving the management and reconciliation of payments across various financial institutions. 

The new offering is addressed to numerous industries, from financial services to lending, BaaS, marketplaces, or insurance. 

By using Dwolla Connect, businesses can leverage their commercial accounts at US banks like JPMorgan or Wells Fargo to initiate payments. This new addition to Dwolla’s suite of products is reportedly a continuation of the company’s efforts to transform the realm of account-to-account (A2A) payments by simplifying the process of sending and receiving funds directly from bank accounts.

More to this point, when commenting on the latest development, a Dwolla representative emphasised that while not all businesses need a digital wallet, they still value payment processing capabilities that can be used for optimising payment operations. They further expressed their excitement in introducing a solution that combines their advanced payment technology with the adaptability to integrate with one's own bank.

The wider context

Dwolla Connect offers a resolution to a pain point in the industry. As outlined in the official release, mid-to-enterprise-sized businesses have to deal with obsolete payment processes as well as fragmented banking integrations. This frequently results in lengthy integration processes and resource-intensive implementations.

By leveraging Dwolla Connect, enterprises can make use of a single API. As a result, they can avoid having to manage various bank integrations and they can optimise their treasury management through the consolidation of all payments into a unified view. This is expected to result in significant reductions in both time and costs.

Furthermore, its API-first approach can enable businesses to integrate A2A payments into their apps. Similarly, they can connect with existing ERP/cash management systems, therefore offering a centralised location for payment information.

Dwolla plans to expand its banking network coverage in the following 12 months by introducing new payment methods and by adding services aimed at enhancing the payment experience of customers. 

To further consolidate its position, earlier in 2023 the company partnered with specialized software development and design company Hello Iconic. One of the expected results of the partnership was that, by leveraging the integration support provided by Hello Iconic, companies would be able to incorporate Dwolla’s ACH API into their platforms.