US-based fintech Dwolla has released Virtual Account Numbers (VANs) to unlock the connection between banks and fitnechs.
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.
VANs can simplify reconciliation by facilitating organisations track transactions and keep data discrete. Customers benefit from augmented security functionality by being able to activate or deactivate VANs and also set transaction limits. An innovative health insurance solution, Take Command, uses VANs for its new AutoPay product that enables clients' employees to pay for qualified medical expenses and health insurance premiums with tax-free funds provided by their employer.
VANs can reduce the time, effort and cost involved in sophisticated account-to-account transactions, and disburse funds from a digital wallet to a secondary business without using sub-accounts, intermediary institutions or needing a recipient's account number.
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