Streamline Your BNPL Operations

Modernize your Buy Now, Pay Later (BNPL) platform by leveraging Dwolla’s unified API for more secure, cost-effective pay-by-bank payments, which help improve cash flow and customer experience.

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Manual Payments Cost More Than You Think

Traditional payment methods can introduce inefficiencies, higher costs and increased risks for BNPL providers.

1. High Transaction Costs
   BNPL providers can face significant transaction fees with every customer repayment made via cards, impacting profitability.

2. Increased Risk of Fraud and Chargebacks
   Reliance on card details for repayments can make BNPL providers vulnerable to fraud, and chargebacks can lead to financial losses and operational burdens.

3. Lower Payment Success Rates and Slower Settlements
   Card payments can fail for various reasons, and slower settlement times can impact cash flow management and user experience for BNPL providers.

“Dwolla has been a huge value-add for us. Dwolla allows us to transfer money really smoothly, really easily and quickly in a way that typical lenders aren’t familiar with.”
Lending Industry CEO/Co Founder

The Benefits of Dwolla's Pay-by-Bank Solution

Dwolla's API-powered automation helps reduce costs, improve cash flow, and provide real-time payment tracking while offering access to instant payment networks for faster, more efficient payouts.

Enhance Payment Success and Accelerate Cash Flow

Dwolla’s pay-by-bank payments and real-time balance checks help improve payment success rates and reduce the risk and cost of failed payments. Faster settlement of pay-by-bank payments accelerates access to funds and cash flow and improves the user experience.

• Reduce the likelihood of failed payments by pulling funds directly from the customer’s bank account after checking the real-time balance in the account.
• Enhance user experience by leveraging RTP and FedNow for near real-time payment processing for BNPL providers, merchants and customers.

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Reduce Costs and Improve Profitability

Dwolla’s unified API provides access to automated pay-by-bank payments that can offer lower transaction fees compared to card payments, reducing operational costs for every repayment.

• Connect to pay-by-bank payment rails including cost-effective ACH and faster payment options, such as Same Day ACH and instant payments via the RTP® network and FedNow® Service.
• Automate the payment process and reduce costs to help improve financial efficiency and optimize cash flow.

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Mitigate Risk and Minimize Chargebacks

Dwolla’s bank transfers and Open Banking Services help reduce reliance on vulnerable card details, leading to lower risk and fewer chargebacks.

• Protect payments data with a variety of enterprise-grade security measures, including encryption and tokenization.
• Use open banking features like instant account verification and real-time balance check to help reduce the risk of returns and fraudulent transactions.

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Examples of How the Money Moves

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Customer Repayments via Pay by Bank
Customers can seamlessly link their bank accounts and authorize installment payments to BNPL providers, reducing costs and improving payment success.

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Faster Merchant Payouts
BNPL providers disburse funds for customer purchases to merchants quickly and cost-effectively, improving merchant cash flow and satisfaction.

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Efficient Customer Refunds
BNPL providers process refunds back to customers’ bank accounts faster and more directly than traditional card reversals.

Automate your 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.

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Lower payment costs and fewer failures for BNPL

Dwolla helps BNPL platforms collect installment payments via ACH and open banking. Reduce card processing costs, detect payment issues earlier, and scale collections without proportional operations growth.

Key Benefits

What changes for your team

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

Pay-by-Bank Collection

Collect installment payments via ACH instead of card rails. Lower per-transaction costs at scale without sacrificing collection reliability.

Open Banking Verification

Verify bank accounts instantly through open banking. Confirm account ownership and balance before the first installment attempt.

Detect Issues Earlier

Standardized status tracking and real-time webhooks flag failed installments immediately. Your team takes action before the next payment cycle.

Predictable Collections

Consistent ACH behavior, automated returns handling, and structured error data give your operations team a predictable collections workflow.

How It Works

From integration to production

A clear path from first API call to live payment operations. 01

Verify borrower accounts

Open banking verification confirms account ownership during BNPL enrollment. Reduce failed first payments with verified account data.

02

Schedule installment collections

Set up recurring ACH debits for installment payments. Dwolla tracks each collection through the payment lifecycle.

03

Handle exceptions automatically

Failed payments surface with structured error codes. Your system retries, notifies the borrower, or escalates based on your business rules.

Built for Scale

Trusted by platforms and enterprises

• Lower Cost vs. card rails
• 126M+ Annual transactions
• Instant Account verification
• 99.9% Platform uptime

Reduce BNPL payment costs at scale

See how Dwolla helps BNPL platforms collect installments via ACH with lower costs, fewer failures, and consistent exception handling.