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September 23, 2022 | 0 min read
Dwolla adds data partnerships to boost security for account transfers
By John Adams
September 23, 2022
Dwolla has added security from MX Technologies to its Secure Exchange product, an open banking program Dwolla initially launched in July. This builds on the MX and Dwolla partnership announcement from last year, as they continue to focus on delivering a robust account verification solution to their shared clients and partners.
MX has been a data aggregation partner for Dwolla for three years. Dwolla will use the MXapi Processor Token to provide its partners with a way to verify accounts without using sensitive data or third parties to move funds between accounts. A token refers to identifiers that stand in for real account information, and are unusable for fraud. Tokenization is used to protect online payments through the card networks' universal buy button, for example.
"People are looking for new ways to pay bills, open new relationships and find a quick way to pay for a purchase. All of these cases need access to bank accounts," said Corinne Bartow, vice president of business development at MX, where she is also responsible for fintech partnerships.
A bank app has easy access to an account number and routing number, Bartow said, but it's more complicated when open banking relationships involve fintechs, which often aren't regulated in the same manner as banks or other fintechs. "The fintechs don't always want to handle this kind of data," Bartow said.
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