Secure Payments with Open Banking

Modernize your payments with open banking. Enable instant account verification, balance checks and fraud mitigation to enhance security and improve your customers' payment experience.

The Benefits of Open Banking

Open banking is revolutionizing the way businesses process payments by giving individuals or businesses greater control and ownership over their financial information. It promotes the secure access and exchange of financial information between various financial institutions and authorized third-party providers through application programming interfaces (APIs). Open banking helps businesses streamline their payment processes, improve the customer experience and enhance security

Simplified Payment Processes

Open banking provides businesses with a more streamlined, efficient, and automated approach to managing payments, leading to cost savings, improved cash flow, and increased operational efficiency.

Improved Customer Experience

By simplifying the payment process and offering a more convenient and user-friendly experience, open banking helps businesses increase customer satisfaction and drive conversions.

Enhanced Security

Open banking utilizes strong authentication methods, including tokenization, which replaces sensitive data with unique, non-sensitive tokens.

How Open Banking Works

You can utilize open banking with Dwolla’s pay by bank payment methods in two different ways.

Dwolla's Open Banking Services

Dwolla’s Open Banking Services allows businesses to get open banking features and pay by bank payments through a single API and single vendor - Dwolla. Dwolla collaborates with Plaid and MX for its Open Banking Services.

Benefits:

• Tailors open banking features and functionality for payments use cases
• Helps provide a smoother implementation process for businesses
• Reduces complexity and accelerates time-to-market for pay by bank solutions

Available open banking features include:

• Instant Account Verification (IAV): Instantly (within seconds) confirm the bank account is open and active, and let customers continue through the authentication and payment flows immediately. This decreases abandonment rates for the account linking process and creates a smoother, more streamlined customer experience.
• Real-Time Balance Check: Check the real-time current and available balances in a bank account before pulling money from it to cover a transaction. This helps reduce the risk of returns due to insufficient funds. Note: Businesses must use IAV through Dwolla's Open Banking Services to verify a bank account before using real-time balance check for that account.

Secure Exchange Solution

Through Dwolla’s Secure Exchange Solution, businesses can easily integrate with Dwolla's data partners and securely exchange information between their APIs and the Dwolla API. Create an exchange, pass it to the endpoint and access the desired functionality. Dwolla partners with Plaid, MX, Finicity and Flinks for its Secure Exchange Solution.

Benefits

• Reduces the amount of sensitive customer information stored on your platform
• Increases flexibility by offering access to a lot of functionality through a single token
• Unlocks the power of open banking with minimal engineering resources

Collaborating with Industry Leaders

Integrate pay by bank payments in as little as ten days.

Dwolla's full-service approach replaces legacy payments technology with a single solution, improving security, data visibility and the customer experience.

Customer Story

Open Banking in Action

Talk to a Payments Expert

Verify bank accounts instantly. Reduce failed payments.

Open banking verification confirms account ownership and balance in real time, so your team onboards users faster and reduces ACH return rates from bad account data.

Key Benefits

What changes for your team

Outcomes that matter to the teams responsible for payments, product delivery, and operations.

Instant Account Verification

Verify bank account ownership in seconds instead of waiting days for micro-deposits. Users connect their accounts and are ready to transact immediately.

Reduced Return Rates

Confirming account details before initiating payments helps reduce NSF returns and invalid account errors. Fewer exceptions for your operations team.

Better User Experience

Users verify once through a familiar bank login flow instead of entering routing and account numbers manually. Higher completion rates, fewer errors.

Account-to-Account Payments

Enable direct bank-to-bank payments without card networks. Lower transaction costs and direct access to user bank accounts for debits and credits.

How It Works

From integration to production

A clear path from first API call to live payment operations.

01

User connects their bank

Users authenticate through their bank's login flow via Dwolla's open banking integration. Account ownership is verified in seconds.

02

Account data is confirmed

Dwolla receives verified account and routing information. No manual entry, no micro-deposit wait times, no guesswork about account validity.

03

Payments initiate with confidence

With verified accounts, your team can initiate ACH debits and credits knowing the account data is accurate. Fewer returns, fewer support tickets.

Built for Scale

Trusted by platforms and enterprises

Seconds

Verification time

Lower

Return rates

Better

User experience

99.9%

Platform uptime

Verify accounts faster, fail less often

See how Dwolla's open banking services help your team reduce ACH returns and improve the user onboarding experience.