Dwolla and Visa Partner on Account Verification for Pay-by-Bank

Dwolla and Visa have partnered to make it easier for mid- to enterprise-size businesses to use pay-by-bank to pay and get paid.

With this collaboration, Visa’s open banking solutions are integrated into Dwolla’s account-to-account (A2A) payment technology, the companies said in a Thursday (May 16) press release.

This integration will bring advanced account verification capabilities to Dwolla’s A2A solution, enabling Dwolla’s clients to instantly verify account ownership and check balances in real time, according to the release.

It will also drive trust in pay-by-bank and give businesses a single, streamlined solution for paying and getting paid via their bank accounts, the release said.

Because the solution is pre-integrated and provided through Dwolla’s single application programming interface (API), it can reduce complexity, smooth the implementation process and accelerate the time to market for A2A payment solutions, per the release.

“By combining financial data backed by the power of the Visa network and A2A payments into a single solution, we’re delivering a robust unified payment experience for finance and technology teams at enterprise-sized companies,” Dwolla CEO Dave Glaser said in the release.

Haley Nusbaum, head of U.S. Visa Open Banking Solutions, added in the release: “This integrated solution enables enterprises to gain access to advanced bank verification tools, enhancing the overall efficiency and security of their payment processes.”

As consumers and companies worldwide conduct business digitally, the onus is on FinTechs and financial institutions to ensure customers can trust the frameworks on which their payments travel, Glaser told PYMNTS in an interview posted in February 2022.

“I think it falls on all of us to make sure that these interactions are as secure as possible using modern security protocols,” Glaser said. “It’s important for everybody in the open banking ecosystem to employ multilayered approaches to protect consumer credentials.”

Pay-by-bank features simplify the setup process for consumers and make it possible for billers to send a pay-by-bank link for automatic monthly payments, Mark Nelsen, senior vice president and global head of consumer payments at Visa, told PYMNTS’ Karen Webster in an interview posted Wednesday (May 15).

“It also has some advantages for the biller, because they maintain their relationship with the consumer,” Nelsen said.

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