Dwolla expands partnership with MX in US

US-based account-to-account (A2A) payments provider Dwolla has expanded its partnership with MX Technologies, making use of its connectivity solutions to help businesses manage the movement of money.

Dwolla’s ‘Open Banking Services’, which launched in February this year, are built-in Open Banking integrations that provide “essential functionalities”, such as instant account verification, balance checks, and fraud mitigation, all via Dwolla’s single API.

The expansion of the partnership means that its ‘Open Banking Services’ now use MX’s Instant Account Verifications (IAV) and account aggregation solutions to provide mid- to enterprise-sized businesses with bank verification and balance check capabilities.

Organisations that use MX’s IAV solution can verify accounts in less than five seconds with the latest security standards through direct OAuth connections, removing the need to rely on micro-deposits.

Account aggregation via MX provides ease and security for consumers when it comes to connecting their external financial accounts to enable faster payments.

Financial institutions increasingly prefer to leverage A2A payments to reduce transaction fees, according to Dave Glaser, chief executive officer of Dwolla.

“However, the experience has to be easy and secure to convince consumers to choose A2A payments,” he said.

“Our partnership with MX allows us to help mid- to enterprise-sized businesses speed up payment processes with instant verifications and seamless account connections to meet consumer needs and keep pace with the evolving payments landscape.”

Given the ongoing advances in real-time payments and the launch of FedNow, faster payment options require faster processes, said MX’s chief commercial officer Michael Whitacre.

“By working together, Dwolla and MX are ensuring fintechs can continue to innovate and deliver fast, secure, and compliant payment experiences,” he added.

“Dwolla has been a valuable partner since 2020 and we’re excited to continue innovating together.”

Last year, Dwolla released Dwolla Connect, which is an API solution designed to simplify payment management for mid- to enterprise-sized businesses.