This collaboration is set to launch in early 2025 and will improve Dwolla's pay-by-bank platform by integrating Plaid's instant account verification and risk assessment capabilities.
The integration aims to simplify the onboarding process for customers through Dwolla's Open Banking Services, offering a modern A2A payment solution tailored for mid- to enterprise-sized businesses.
Comprehensive A2A payment solution: the Open Banking Services will provide a single vendor and API solution, simplifying the implementation and maintenance of payment systems.
Instant and secure transactions: businesses will benefit from better efficiency in executing secure bank transfers and pay-by-bank transactions.
Extensive bank coverage: the solution will connect to financial accounts at over 12,000 institutions across the US.The partnership also holds the potential for mitigating ACH return risks and improving fraud detection and prevention for Dwolla's customers. As part of its product roadmap, Dwolla plans to leverage features such as Plaid Signal and Identity Match, enabling businesses to access risk scores and transaction-based attributes.
This collaboration is a continuation of Dwolla's commitment to improving its Open Banking Services, which already includes partnerships with Visa and MX. The integration builds on a long-standing relationship between Dwolla and Plaid, with many mutual customers utilising the existing Secure Exchange Solution, which will remain supported through the new integration model.
The adoption of A2A payments is rapidly increasing as digital banking continues to expand and businesses seek faster, more secure payment methods. A2A payments bypass traditional intermediaries like card networks, offering a more cost-effective alternative that appeals to businesses aiming to reduce the high fees associated with credit card transactions. This shift is particularly relevant in today’s financial landscape, where efficiency and security are key priorities, and businesses are turning to innovative payment solutions to meet customer demands while optimising their operations.
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