Transferring large sums of money typically always poses a risk. This rings true especially in today’s tech-savvy world, where computer hacking makes it easier to launch a cyberattack against big financial actions.
This week, financial software company Plaid and SaaS platform Dwolla announced their partnership to make the financial world a bit safer. Through an extensive authentication process by Plaid and Dwolla facilitating fund movement, sensitive finance data will be tokenized to reduce exposure.
With over $41 trillion moved annually via the ACH network, it’s clear that a less risky way of transferring funds was needed.
Plaid’s Co-Founder and CEO, Zach Perret, commented on this new partnership and what it means for the world of ACH payments: “We’re at an inflection point in the world of ACH payments. This partnership brings Dwolla and Plaid together to simplify the developer experience, increase data availability for easier approvals and increase security for consumers via account number tokenization. The strength of security in card networks is based on tokenization being table stakes — which we hope becomes more common throughout the industry — and we’re working to make [it] a reality with partnerships like this one.”
Dwolla and Plaid’s joint customer Clarity Money’s CEO, Adam Dell, highlighted the importance of tokenization and what this partnership means for the industry at large: “Tokenizing this data is a huge win for consumers and a boon for companies looking to reduce their information security risk. Not only does this collaboration between Dwolla and Plaid make it easier and safer for new entrants, like Clarity Money, to get products to market, it underscores the new net value, best practices and conversations being generated by FinTechs in the space.”