Fintech applications are empowering the consumer. Digital lending, Buy Now, Pay Later programs, blockchain and wealth management platforms have triggered traditional financial firms to invest in technology and adapt to the trends of their end users. Consumers want and expect more control over their finances. Providing a seamless user experience is crucial to scaling any fintech platform.

Before determining how fast you want money to move, consider the different parties involved in transacting. The Dwolla API has multiple customer types that provide clients and partners with different options for their end users. A fintech payment platform with a streamlined onboarding process is within reach.

With Dwolla, fintechs have the flexibility to create the customer type that fits their funds flow and control the timing of each transaction using different payment speeds. Configure the Dwolla API to collect, disburse or facilitate payments. Combine multiple funds flows to build a sophisticated fintech payment platform.

For information about creating customers in the API and initiating faster payments, refer to the fintech payment platform examples in the sections below. This guide will illustrate potential funds flows and work through two common use cases to showcase the flexibility of the Dwolla Platform for fintech companies.

 

Automating Consumer Repayments

Funds Flow Graphic Customer Makes Purchase Customer Signs Up for BNPL App Attaches & Verifies Bank Account Schedules Repayment Next Day ACH Debit Transfer Initiated Ledger Records Activity

Koala is a Buy Now, Pay Later fintech platform. When a merchant works with Koala, customers can choose to make a purchase and schedule repayments in monthly installments over an agreed upon timeframe.

Koala has integrated with the Dwolla API. Each new end user making a purchase would be created as a Customer with an attached bank account. That end user would authorize a transfer each month from the attached funding source to the merchant’s account. The end user would initiate a Next Day ACH transaction to make the funds available faster than Standard ACH transfer in the merchant’s account.

If the merchant wants those funds in their account even faster, then Same Day ACH transactions could be initiated to reduce the transfer timeline to as little as a few hours.

“For ACH, Dwolla is the industry leader. With Dwolla, we’re able to transfer money really smoothly, easily and quickly in a way that typical lenders aren’t familiar with.”
CEO of LoanWell

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Daily Payments To Gig Workers

Koala is expanding its payment platform capabilities to handle disbursements, not just collections. Automated disbursements are particularly useful for the gig economy.

For example, Koala integrates with a ride-share platform to initiate disbursements to drivers. In this case, the drivers on the platform would be created as Receive Only Users within the Dwolla API. This customer type can only receive funds. View the complete onboarding parameters here.

From the business perspective, once the driver submits their hours—and that information is verified—the ride-sharing platform can initiate a disbursement to the driver using Koala (with payments powered by the Dwolla API behind the scenes). Initially, the driver would qualify for Standard ACH transaction timing. As more transactions occur and transaction history is established, the disbursements can happen quicker with faster payment options. These options include Same Day ACH, Real-Time Payments and Push-to-Debit.

“Clients continue to ask for faster payment options, so we’re looking to expand on that area as we work towards our goal of 500,000 clients. Dwolla has been a main reason for that growth.”
Co-Founder of Ualett

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When your fintech is ready to work with Dwolla, contact our team to start the conversation. We will use this time to talk through your use case.

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