Dwolla, Plaid collaborate to offer tokenised ACH payment integration
Dwolla has partnered with Plaid.
Payment processing firm Dwolla has partnered with Plaid, a technology platform that enables applications to connect with users’ bank accounts, to offer a fully tokenized automated clearing house (ACH) payments integration.
The agreement makes it possible to tokenize account and routing numbers and authenticate user bank accounts through Plaid and start accepting ACH payments in minutes with Dwolla’s ACH API.
Plaid will serve as the authentication gateway and data provider, while Dwolla will act as an ACH provider and facilitate the funds transfer via its Access API.
Plaid CEO and co-founder Zach Perret said: “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 CEO Ben Milne said: “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. The partnership demonstrates how fintech companies can come together to introduce easier and safer ways to access the nation’s banking infrastructure.”
The ACH network moves more than $41 trillion each year.