Dwolla And MX Aim at a Broader Approach to Open Banking

The open-banking platform MX Technologies Inc. has become the latest partner in Dwolla Inc.’s Secure Exchange solution. Through the partnership, which builds on the two companies’ existing relationship, digital-payments fintech Dwolla will be able to offer clients and reseller partners it has in common with MX access to account-verification services using MX technology called MXapi Processor Tokens. Dwolla and MX have been working together to create interoperable systems for data sharing.

MXapi Processor Tokens facilitate exchanges between partners without the risk of using or storing sensitive data and without the need for third parties for money movement. As a result, clients and resellers can more easily access funds-transfer datasets and access account-verification services and get to market faster. The tokens also provide a more convenient approach to accessing necessary information for identity and know-your-customer initiatives, while emphasizing data protection, according to Dwolla and MX.

Through the exchange of tokens with trusted partners, Dwolla can directly request data, rather than requiring clients to collect and pass that sensitive account information through their applications.

“Dwolla’s Secure Exchange solution is designed to be an ecosystem of top open-finance providers for verifying a user’s financial-account information,” says Yasser Abou-Nasr, senior vice president of product for Dwolla. “[The token] enables a trusted source into our ecosystem for easy access to money movement data sets and decisions. Adding MX Technologies to our network expands on the flexibility for our clients to choose a provider they want to use when building a tailored account-to-account payments experience.”

Launched in July, Secure Exchange is intended to enhance Dwolla’s open-banking strategy by providing account-to-account payment services through a more smoothly connected experience for businesses. Other partners include another open-banking provider, Finicity, which is owned by Mastercard Inc. and Plaid Inc.. “As we curate a more-connected experience across payments and open-finance providers, we are partnering with those renowned for building trusted open-banking solutions,” Abou-Nasr says.