Multi-rail orchestration through the RTP® network and the FedNow® Service helps maximize payment reach, cut costs and streamline cash flow management
Dwolla, a leading U.S.-based account-to-account payment solution, today announced the inclusion of the Federal Reserve’s FedNow Service instant payment system into its platform via its banking partner. By enabling access to both the FedNow Service and the RTP network and using intelligent routing to orchestrate between them, this enhancement increases the reach and efficiency of instant payments for businesses.
Expanding Coverage and Simplifying Payment Management
Instant payment coverage is key for businesses aiming to optimize cash flow and operational efficiency. By supporting FedNow transactions, Dwolla nearly doubles the number of financial institutions reachable via instant payment rails, allowing clients to send payments within seconds to a broader network. Additionally, Dwolla’s orchestration technology checks accounts for instant payment eligibility and routes payments through either RTP or the FedNow Service, eliminating the complexity of managing multiple networks.
"As businesses face increasing pressure to deliver immediate payments, seamless access to multiple real-time payment networks is critical," said Dave Glaser, CEO at Dwolla. "By supporting both the FedNow Service and RTP and orchestrating between them, we equip businesses with the tools to simplify payments, enhance cash flow and improve operational efficiency."
With 80% of businesses planning to adopt instant payment systems by 2026, this enhancement positions Dwolla’s clients to improve their customer satisfaction, reduce operational costs through automation and meet rising payment demands.
“Dwolla’s access to both the FedNow Service and the RTP network represents a significant step toward realizing the full potential of faster payments in the United States,” said Reed Luhtanen, Executive Director and CEO of the U.S. Faster Payments Council. “By leveraging intelligent routing and multi-rail orchestration, Dwolla is making it easier for businesses to access the benefits of real-time payments—greater speed, transparency and efficiency. This is the kind of innovation and commitment to interoperability that moves the industry forward and delivers tangible value to end users.”
Delivering Instant Payment Benefits for Businesses
Dwolla’s instant payment orchestration technology helps to ensure each transaction is processed through the most efficient rail. With this integration, businesses gain:
- Broader Coverage: The FedNow Service boasts a network of over 1,400 participating financial institutions, and growing.
- Redundancy: If the receiving bank supports both RTP and the FedNow Service, clients have multiple options to send their payment in real-time if one network is experiencing an issue.
- Unified Solution: A single API to manage payments across both networks.
- Increased Customer Satisfaction: Faster payment processing leads to higher customer satisfaction and loyalty.
- Improved Cash Flow: Instant availability of funds enhances liquidity.
- Data-Driven Insights: Real-time payments operate via modern protocols and allow for more data to be attached to each payment, providing valuable insights for strategic decision-making.
“We’re excited to see how organizations like Dwolla are finding efficient and effective ways to leverage the FedNow Service, which was designed to help businesses and consumers access the countless benefits of instant payments,” said Mark Gould, chief payments executive for Federal Reserve Financial Services. “By advancing real-time transactions, this type of private-sector adoption plays a vital role in advancing the nation’s payment infrastructure.”
Making Instant Payments Easy for Businesses of All Sizes
Dwolla’s API-first approach simplifies the integration of instant payments into existing systems. The intuitive platform also enables businesses to automate eligibility checks for payment rails, reducing manual intervention and enabling efficient transaction processing.
To learn how Dwolla’s FedNow Service and RTP capabilities can streamline your payment operations and enhance your cash flow, visit www.dwolla.com or schedule a consultation with the team.