Dwolla Signs Up 12 Financial Institutions for its Mobile Payment Network


Dwolla has provided roughly a dozen financial institutions with keys to its low-cost, real-time payment transaction network FiSync since it opened its doors to the banking industry at the Finovate Spring conference this year in San Francisco.

Banks get access to FiSync through an open application programming interface that allows developers to move money over Dwolla's network.

The payment method is comparable in cost to an Automated Clearing House transaction, but it moves money as fast as a credit card transaction.

More than two dozen banks have signed up for the service.

"It's live and it's public," says Dwolla founder and chief executive Ben Milne. "If you are a financial institution you can go to FiSync.dwolla.com to get access to the keys …but we probably won't approve you" yet.

Milne says his company is taking its time taking when giving banks access to its recently released bank transfer system.

Last month, Dwolla announced that Veridian Credit Union of Waterloo, Iowa, began offering FiSync mobile and online payments to its customers through the bank transfer system. The credit union has roughly 160,000 members.

Milne spoke Monday on a panel sponsored by The Technology Council of Greater Kansas City, KCnext.

Alterra Bank, a $150 million asset bank in Overland Park, Kan. that is focused on commercial customers, recently contacted Dwolla in order to get access to FiSync.

Over the past year or so, Alterra spent $500,000 on technology and launched new mobile and banking applications, including mobile remote deposit capture, this spring.

"We are probably still a long ways off," says Alterra's chief strategy officer Jeff Chambers. "But the ability to transmit payments like that would benefit our customers."



'The Law Penalizes the Consumers It Set Out to Protect': Comments of the Week

American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.

(Image: Fotolia)

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

The FinTech 100

FIS and Tata once again top the annual FinTech 100 list of vendors, ranked by revenue; IBM and Hewlett-Packard lead the pack of tech companies serving multiple industries; and Bionym and Silver Tail are among the 10 Tech Companies to Watch.

A Newsletter featuring Bank Technology News' top stories plus special reports and data

This feature displays payments industry news and analysis from American Banker sibling brand PaymentsSource. Registration is required; for more information contact customer service.

Already a subscriber? Log in here
Please note you must now log in with your email address and password.