Dwolla to Power Identity Verification for Yahoo!’s Tanda Savings App

Bank access API provider and money transfer system, Dwolla, is playing a role in Yahoo!’s latest fintech venture. The Iowa-based company will be powering identity verification and money transfer for Tanda, Yahoo!’s social savings app.

Launched last week, the Tanda app divides users into groups of five or nine to pool money and save for short-term savings goals. Users group their money together over the course of a set period of time and every month, one user gets to take home the entire pot of money. The first two users to receive the funds pay a small fee, while the last recipient earns a 2% bonus.

The Tanda app is intended to be used as an alternative to credit cards or short term loans. The concept comes from a rotating savings and credit association (ROSCA), an idea that’s been around for quite some time.

Using Dwolla’s API, Yahoo! will connect to the user’s bank to move money, store funds, validate their identity, and verify their bank account. This comes exactly one year after Dwolla relaunched its API to offer a more inclusive, white-labeled API that rolls in additional features such as a wallet functionality that holds a balance of funds.

Dwolla, which most recently demoed FiSync at FinovateSpring 2015, was founded in 2008 and is headquartered in Des Moines, Iowa. Last summer, the company added a multi-user feature to its Access API dashboard. In May of 2017, Dwolla teamed up with Plaid to offer a fully tokenized ACH payment integration. Ben Milne is founder and CEO.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

The Bill & Melinda Gates Foundation to Launch UnderBanked Service in Partnership with Dwolla, Ripple, and Others

The Bill & Melinda Gates Foundation announced the launch of a service today that it created with in partnership with Dwolla, along with collaboration with Ripple, Crosslake Technologies, ModusBox, and Software Group. The new tool is an open-source code for creating a payments infrastructure intended for unbanked populations.

Called Mojaloop, the system is named after the Swahili word for “one.” The program is aimed to empower local, unbanked communities by offering a single, secure, digital payment method that replaces the use of cash, which is inconvenient and often insecure. The code is secure and interoperable and can be used at scale to serve an entire country or region, and the open-source nature enables developers to build, enhance, or adapt the code to suit specific needs.

“Imagine your life without banking. How would you pay your bills? Or store your money for safe-keeping? For two billion people around the world, these challenges are very real,” the launch video for Mojaloop begins. It goes on to explain that the service helps users spend and save money easily and securely, while offering financial providers access to a group of new clients. Mojaloop has three main layers:

  1. An interoperability layer, which facilitates payments made among various services, including bank accounts, and mobile money accounts.
  2. A directory service layer, which is responsible for routing each payment to the correct provider
  3. A transaction settlement layer, which records each transaction in each provider’s master ledger

Before creating Mojaloop, Dwolla undertook market research that took “countless calls, work-sessions, and meetings” to curate. The company described Mojaloop as “a true victory for the development of global payments” and said that the project “evens the playing field, so everyone can benefit from the sophistication of a ubiquitous payments infrastructure.”

Participating in the Mojaloop project, Dwolla said it drew from its experience in creating FiSync, and leveraged ideas from its Fast Payments Proposal. In a blog post announcing the launch, the company said, “As an organization, we are excited to see where the Gates Foundation and the open-source community, continues to strive to find a payments solution for the betterment of the global economy.”

Dwolla, which most recently demoed FiSync at FinovateSpring 2015, was founded in 2008 and is headquartered in Des Moines, Iowa. Earlier this summer, the company added a multi-user feature to its Access API dashboard. In May, Dwolla teamed up with Plaid to offer a fully tokenized ACH payment integration. Ben Milne is founder and CEO.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

FinDEVr APIntelligence

FDLD17_EventLogoV1_wdate(large) (1)We saw some great stuff at FinDEVr New York earlier this year. If you missed out, check out FinDEVr London on June 12 & 13 during London Tech Week. Register today and save big time.

On FinDEVr.com

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Alumni updates

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Stay current on daily news from the fintech developer community! Follow FinDEVr on Twitter.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Dwolla Launches Same-Day Bank Transfers

Screen Shot 2017-03-06 at 1.47.38 PM

Bank access API provider and money transfer system, Dwolla, launched same-day ACH transfers today. This new development allows businesses to deliver money to a client on the same day they initiated the transfer. The same-day ACH capability is much faster compared to the industry standard wait time of two-to-four business days.

In the press release, Dwolla CEO and founder Ben Milne said, “Whether it’s making emergency payouts, improving customer satisfaction through faster refunds, or allowing partners to capture float or vendor discounts, the addition of Same Day ACH to Dwolla’s Access API provides our partners with another competitive advantage for them to own and apply as they see fit.”

Dwolla’s new same-day ACH transfer capability benefits not only the customer experience, but it also complies with upcoming regulations. NACHA, the administrator of ACH, issued new rules last year regulating the sending and receiving of money over ACH rails. Starting September 15, 2017, all banks must be able to receive and process same-day debits and credits.

Founded in 2008, Dwolla set out to make sending money faster and less expensive. The company launched a consumer-facing money transfer product in 2010 and has since phased out of the consumer market to focus on its business offerings. The first product, Access API, helps developers connect their app to the banking ecosystem. Transfer, the second product, helps businesses send and receive bank transfers using a straightforward platform.

Earlier this year, Dwolla closed on $6.85 million in funding, bringing its total raised to just over $39 million. The company last presented at FinovateSpring 2015.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Dwolla Raises Capital, Relaunches Access API

Dwolla_homepage_January2017

Writing at the Dwolla blog, company founder and CEO Ben Milne expressed how important the goal of “building the ideal API to move money” was to him and his company. Calling this “part of our DNA,” Milne wrote that the new opportunities Dwolla’s technology has created have “come with growth and the need to finance it.”

And finance it Dwolla has. The company picked up $6.85 million in new funding in a round led by Union Square Ventures and Foundry Group. Milne wrote that the investment will be used to expand Dwolla’s sales and account management operations in Des Moines, Iowa. The round featured participation from Detroit Venture Partners, Firebrand Ventures, High Alpha, Ludlow Ventures, and Next Level Ventures, and brings Dwolla’s total capital to just over $39 million. Firebrand Ventures founder John Fein was quoted in the Kansas City Star crediting Dwolla for rekindling his interest in supporting fledgling technology companies.

Dwolla_stage_FS2015

Pictured: Dwolla Director of Communications and Policy Affairs Jordan Lampe demonstrating FiSync at FinovateSpring 2015.

Milne also announced his company’s API Suite, Access API, will now contain all of Dwolla’s white label solutions. “Nothing changes for current customers,” he noted, “but additional features will be rolled into the Access API to make building software that connects to the banking infrastructure easier.” These features, according to TechCrunch, include same-day transfer and a new dashboard for managing transactions. Fortune.com notes that Access API “has attracted more than 100 customers in its first year.”

Founded in 2008 and headquartered in Des Moines, Iowa, Dwolla demonstrated its FiSync technology at FinovateSpring 2015. The company partnered with open source subscription billing and payments platform, Kill Bill, last October and, in August, introduced a new dashboard and administrative interface for its white-label partners. Dwolla added more FIs to its instant account-verification flow back in May.