Plaid & Dwolla Announce New Partnership
Just today, Plaid and Dwolla announced a new partnership to offer a fully tokenized ACH payment integration.
This new union makes it possible to tokenize account and routing numbers and authenticate user bank accounts via Plaid and start accepting ACH payments within minutes with Dwolla’s ACH API.
Plaid, known in the industry as a tech company whose suite of APIs enables many innovative and rapidly growing companies in financial services, serves as the authentication gateway and data provider where as Dwolla, a SaaS platform that moves billions of dollars for developers and businesses small and large, is the ACH provider and sustains the movement of funds through its Access API.
The new partnership tokenizes the sensitive financial information from transactions to significantly limit exposure of the data.
“We’re at an inflection point in the world of ACH payments,” said Zach Perret, CEO and co-founder of Plaid. “This partnership brings Dwolla and Plaid together to simplify the developer experience, increase data availability for easier approvals, and increase security for consumers via account number tokenization. The strength of security in card networks is based on tokenization being table stakes, which we hope becomes more common throughout the industry, and we’re working to make a reality with partnerships like this one.”
“Dwolla has specialized in making bank transfers more accessible and secure for years. During that time, Plaid focused on innovating in the bank authentication and consumer data space,” said Ben Milne, CEO of Dwolla. “The partnership demonstrates how fintech companies can come together to introduce easier and safer ways to access the nation’s banking infrastructure.”
“Tokenizing this data is a huge win for consumers and a boon for companies looking to reduce their information security risk.” said Adam Dell, CEO of Clarity Money, a joint customer of Dwolla and Plaid. “Not only does this collaboration between Dwolla and Plaid make it easier and safer for new entrants, like Clarity Money, to get products to market, it underscores the net new value, best practices, and conversations being generated by fintechs in the space.”