Account To Account Money Movement Is The Future Of Payments
When we talk about Fintech, we often talk about using technologies to deliver new digital banking services to underbanked customers. Or evolving the banking experience. Or how technology is democratizing access to financial and economic opportunities.
At the core of many of these new digitally-driven services is payments. Specifically, how money is moved from one account to another, be it person to person, business to business, or even person to business. And perhaps no other Fintech firm is more equipped and well-positioned to tackle account to account payments than Dwolla, a sophisticated platform developed to facilitate moving money affordably, easily and quickly.
Dave Glaser, President and COO of Dwolla, pointed out that moving money from account to account is becoming a key piece of Fintech innovation on this week’s Fintech Growth Talk. Like many trends accelerated by the pandemic, both startups and large companies are starting to embrace new technologies that embed financial transactions across a variety of experiences.
And it’s across a variety of industries, as well, not just banking. Glaser notes that mortgage companies, escrow firms, insurance agencies and even individual gig economy workers across a broad spectrum not only rely on digital technologies to use money, but they’re placing it at the heart of their digital transformation efforts.
These new digital tools for transferring money between accounts is a good match for the global economy, says Glaser. Cross border money movement is complicated, but increasingly necessary for both individuals and businesses as we embrace more global marketplaces. Open banking, which is common in Europe and starting to become more widespread in the US, is a big part of that. Open banking involves greater access to data and banking APIs, as well as firms like Dwolla, which ultimately will allow for greater connectivity between organizations. This will not only enable growth of global marketplaces for people like gig workers, but it will also facilitate both international travel and remittances, says Glaser.
And while international money movement is a huge opportunity, so too is helping the underbanked gain access to new financial services. For example, buy now pay later…