Dwolla joins Plaid to future-proof Pay by Bank Payments

By Gloria Mathias

Dwolla, a U.S.-based account-to-account (A2A) payment solution provider, has announced an expanded partnership with Plaid, a data network that powers the digital financial ecosystem.

This premiere payments solution, set to go live in early 2025, will integrate Plaid’s instant account verification (IAV) and network-pow-ered risk assessment capabilities into Dwolla’s payby-bank platform. This will enable customers to onboard with Plaid through Dwolla’s Open Banking Services, creating a modern A2A payment offering for mid to enterprise-sized businesses.

“Our expanded partnership with Plaid represents a significant step forward in our mission to simplify and streamline pay-by-bank payments for businesses,” said Dave Glaser, CEO of Dwolla. “By integrating Plaid’s advanced account verification and risk assessment features into our Open Banking Services, we’re providing a single, unified solution that addresses the complex needs of modern enterprises in the evolving payments landscape.”

The integration offers several key benefits:

• Comprehensive A2A Payment Solution: Dwolla’s Open Banking Services provides a single vendor and single API solution, simplifying the operational and technical aspects of implementing and maintaining payment systems.
• Instant and Secure Transactions: The partnership enables businesses to execute instant and secure bank transfers and pay-by-bank transactions, improving payment efficiency and customer experience.
• Extensive Bank Coverage: Dwolla’s scalable solution with Plaid connects to financial accounts at over 12,000 institutions in the United States.

“Expanding our partnership with Dwolla aligns perfectly with our goal of making open banking payments and money movement more accessible and efficient,” said Tamara Romanek, Head of Partnerships at Plaid. “By combining Plaid’s robust account verification and risk assessment capabilities with Dwolla’s innovative A2A payment infrastructure, we’re creating a powerful tool that will help businesses streamline their payment processes and provide better experiences for their customers.”

Looking to the future, the partnership with Plaid could also enable Dwolla’s customers to mitigate ACH return risk and perform enhanced fraud detection and prevention.