This new offering provides additional functionality to simplify payment workflows and reconciliations, enabling further open banking innovation.
Des Moines, IOWA — April 7, 2022 — Dwolla, a fintech company powering innovation with sophisticated account-to-account payment solutions, announced the release of Virtual Account Numbers (VANs), a highly anticipated feature to unlock the connection between banks and fintechs. Unlike virtual account numbers for credit cards, VANs are a process management tool to enable organizations to manage complex payment workflows. These transfers can be to and from external sources to a Dwolla Balance.
“Our use of Virtual Account Numbers for payment workflow management is distinctive,” says Dwolla CEO Brady Harris. “Competitor products focus on fund transfers. We created VANs to serve as a tool for creating, simplifying or organizing payment process workflows. That distinction is what makes our VANs feature so versatile. And it’s why I’m so excited to share this product with the market.”
Using Dwolla’s technology, businesses can transfer funds to and from a Dwolla Balance (digital wallet) directly from any ACH-enabled platform using a unique account and routing number. This is where VANs streamline and simplify workflows. VANs allow a Dwolla Balance to receive funds from multiple sources, such as payroll systems and mobile wallets, not just bank accounts. Funds can also be tracked based on which VAN the sender used.
VANs can simplify reconciliation by helping organizations track transactions and keep data discrete. Customers benefit from enhanced security functionality by being able to quickly and efficiently activate or deactivate VANs and also set transaction limits.
An innovative health insurance solution, Take Command, uses VANs for its new AutoPay product that enables clients’ employees to pay for qualified medical expenses and health insurance premiums with tax-free funds provided by their employer.
“Using VANs from Dwolla allows us to attract and better serve a size of client that we previously wouldn’t have been able to,” shares Jack Hooper, CEO of Take Command. “Our payment solution is an important step in boosting the popularity of this innovative benefits model and more importantly, it helps us care for our clients and their employees on a whole new level.”
VANs can reduce the time, effort and cost involved in sophisticated account-to-account transactions. Quickly disburse funds from a digital wallet to a secondary business without using sub-accounts, intermediary institutions or needing a recipient’s account number.
The release of VANs comes on the heels of Same Day ACH transaction limits being increased to $1 million and new leaders being added to Dwolla’s board of directors, laying the foundation for an explosive 2022.