Dwolla approaches security as it approaches design, an opportunity to enhance the customer experience.
Like design, security exists as an integral part of our company culture—something that we celebrate and continue to evolve. We pride ourselves in being a learning organization that always wants to learn from the best. It’s why we collaborate with amazing partners, like Cloudflare, Distil, and now, Plaid.
Today, we are excited to announce our new partnership with Plaid. We see this alliance as two fintech companies coming together to make accessing the nation’s banking infrastructure easier for businesses and their customers in the digital economy.
Plaid enables third party applications to verify users’ bank accounts in a way that doesn’t share sensitive financial data, like account and routing numbers, with the application. This avoids the burden of the business having to handle that data.
By leveraging bank verification services like Plaid, applications are able to avoid the manual entry of account and routing numbers, therefore eliminating an error-prone process that forces businesses to capture sensitive financial information on their own systems.
How the Dwolla + Plaid Integration Works
Dwolla is utilizing Plaid Link, an elegantly designed and secure way for our joint customers to verify account ownership with access tokens.
With tokenization, sensitive financial information is removed from the transaction stream. Within this integration, Plaid functions as a vault, protecting the data, but allowing the distribution of important information to Dwolla without requiring our customers to store it. The tokens are not long-lived and they may be one-time, have an expiration date, and be revoked when necessary.
The concept of giving value to an otherwise value-less item has real application in the digital world, especially as it relates to security. It’s why tokenization is at the core of our platform.
This is something we value in our partnership with Plaid; that they understand the importance of and specialize in the secure distribution of data.
A Dwolla application can verify its customers’ bank accounts via Plaid Link, use the Plaid token to create a customer via Dwolla’s API, and start facilitating ACH payments via Dwolla’s ACH API.
The application can then debit, credit or facilitate authorized transfers between those customers’ accounts, all within the application’s interface. Read more about the integration in our developer resource center.
Businesses using Dwolla’s API will also be able to take advantage of additional features of the API, like implementing a facilitator fee on top of the transfers they process or speed up the transfer times with things like Next Day or Same Day ACH.
We expect a lot from our customers and they expect the same from us–namely strong data protection for our mutual customers.
In the case of Plaid, our security practices complement each other and are mutually beneficial to both of our platforms and customers. From bank account verification to the sending of ACH transfers, the whole payment experience has been securely brought online and made faster.
Get started now
If you’re interested in leveraging our Plaid Link within the Dwolla API, reach out and we’ll help you get started. Once you get set up, you’ll be verifying bank accounts and initiating transfers within seconds, not business days.