Dwolla and BBVA Compass Make True Real-Time Payments a Reality

April 8, 2015         By: Kevin Xu

With all the talk of upgrading the payment systems of financial institutions in the US, BBVA Compass and Dwolla have partnered to provide real-time payments through Dwolla’s network.

While financial institutions have received greater criticism from consumers and the Federal Reserve for still using the ACH system, it appears this partnership signifies a sea change towards faster payments.

Instead of batch processing through ACH, which usually takes several days to settle into customer accounts, Dwolla’s digital FiSync network settles payments in seconds, giving users nearly immediate access to their funds.

Chad Ballard, Director, Mobility and New Digital Business Technologies at BBVA Compass mentioned, “We have a common thought leadership on real-time payments and the solution we’ve integrated combines the best of both; with the security and fraud prevention of a bank, and the real-time and security of Dwolla.”

BBVA Compass will also utilize Dwolla’s fee structure, which is 25 cents per transaction on amounts greater than $10, and free when under $10.

Transactions are also tokenized, which means it’s no longer necessary to give out sensitive bank account information (especially to a third party) as payment details are all replaced by the network when it sends out tokenized values in place of account and routing numbers.

All this adds up to faster, cheaper, and more secure payments for credit, debit, person-to-person, and B2B transactions if a user chooses to opt-in.

In an effort to foster innovation, Dwolla and BBVA Compass have also appealed to developers and innovators with open access to Dwolla’s real-time payments API, made available to entrepreneuring BBVA Compass customers.

Ben Milne, CEO at Dwolla, said “We’ve had these businesses that have built up usage on Dwolla over time and they all have the same problem that everything is next day by default because of the underlying systems. Now we’re able to say to these businesses, ‘if you want real-time (which you’ve been telling us you do for years), go to this bank and you’ve got it.'”