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

Dwolla and Visa announced a joint effort to simplify the process for medium and large businesses to use the pay-by-bank system to make payments and receive transactions of the corresponding category.

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

The mentioned companies announced the cooperation by publishing a press release with relevant content on Thursday, May 16. As part of the implementation of these partnerships, Visa’s open banking solutions will be integrated into the Dwolla account-to-account (A2A) payment technology.

The press release also notes that the mentioned integration will add advanced account verification capabilities to the Dwolla A2A solution. For Dwolla customers, this means the ability to instantly go through the procedure of confirming ownership of a personal page in the company’s digital functional system and check the balance in real-time.

The press release notes that the integration will increase user trust in the pay-by-bank solution. Also in this context, special attention was paid to the fact that enterprises will have access to a single, simplified mechanism for making payments and receiving such transactions through their bank accounts.

The specified solution has been pre-integrated and provided through a single Dwolla Application Programming Interface (API). This means that it is likely to simplify the implementation process and accelerate the introduction of A2A payment solutions to the market. The corresponding statement is contained in the press release.

Dwolla CEO Dave Glaser says that combining financial data backed by the power of the Visa payment network and the A2A mechanism into a single solution provides a reliable unified transaction system for financial and technological units of enterprise-sized companies.

Haley Nusbaum, head of the US Visa Open Banking Solutions unit, said that the integrated solution allows businesses to access advanced banking verification tools. She also stated that in this case, the overall efficiency and security of payment processes are increased.

Dave Glaser, during a conversation with media representatives in February 2022, said that the responsibility for ensuring that customers can trust the functional systems through which payment operations are carried out lies with fintech companies and financial institutions since consumers and firms around the world conduct business in a digital format. He specified separately that the responsibility is to ensure that the relevant interactions are as secure as possible using modern protocols. According to him, all participants in the open banking ecosystem need to apply multi-level approaches to protect customer credentials.

The pay-by-bank feature simplifies the setup process for consumers and allows customers to send a link to make monthly payments automatically. The corresponding statement was made by Mark Nelsen, senior vice president and head of the Visa consumer payments unit worldwide, during a conversation with media representatives this week. According to him, pay-by-bank has certain advantages for billers, as they maintain their relationships with customers.

As we have reported earlier, Avidbank Taps CorServ to Roll Out New Commercial Credit Card Program.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.