800+ banks and credit unions are getting Dwolla access thanks to mFoundry

Something pretty big has happened. Dwolla has partnered with a mobile banking product that has 800+ bank and credit union clients.

This isn’t just any mobile banking product, it’s mFoundry’s Fin.X, the company that built one of the most successful commercial mobile payments ventures to date, Starbucks Card Mobile. The company plans to unveil Fin.X today at BAI Retail Delivery conference in Washington, D.C.

Fin.X will be giving banks the opportunity to utilize Dwolla and other mobile products as an extension of their core mobile banking platform.

This is just another example that open API’s are the future. Layers of technology and services can be baked into other networks to provide customers with the most value available.

Dwolla’s growing consumer network connects these financial institutions software (provided by mFoundry) to the rest of the world.

There really aren’t a lot of great mobile products at banks that let you pay a local coffee shop, friend, or rent by using your phone. mFoundry aims to change that, and with mobile banking expected to triple in the next five years, we’re thrilled to be a part of a huge shift in mobile banking technology.

  • http://twitter.com/CBuettner627 Carl Buettner

    Great move to increase adoption in the payment ecosystem. Drive consumer awareness and partner with leading FIs to expand ‘stickiness’ factor in mobile payments.

  • http://twitter.com/GregMeadows GregMeadows

    will this mean integration with iPhone Passbook?

    • http://twitter.com/bpmilne Ben Milne

      Greg – This actually means something much more. Millions of American consumers bank through software provided by mFoundry. What this means is that those millions of people can easily be connected to the existing Dwolla network and the merchant base while still bypassing the existing plastic system. Payments to anyone, for anything, anywhere, in real-time, directly from the mobile banking. All good stuff.

  • DarkMagess

    Is there any way to find out if my bank is one of them?

    • CaityJones

      Here is a list of some of the larger financial institutions that are currently clients of mFoundry: http://www.mfoundry.com/mbanking-customers/. There’s also a link there that enables you to contact them for further information!

      • redcrew

        Thanks for the info. Unfortunately, mFoundry’s contact form is flawed. It requires you to enter your title, company, phone number and a non-free email account. Here’s the message I received when I submitted my request with my gmail account: Please input a non-free email account.

        • CaityJones

          Hi there redcrew,

          Just got off the phone with mFoundry and they are very pumped about the excitement around their product. They’re requesting that you reach out to your financial institution about Fin.X and inquire about what types of services that your FI will be integrating, as they would have a better idea of which services they are looking to implement into their mobile banking app. They do have a contact number here: 415-925-8550. I sent in an email request to speak with someone and they called me back within 5 minutes.

  • craigbooker

    Congrats! Excited to hear the news!

    • CaityJones

      Thanks, Craig! :)

  • Dave

    How does this impact Bitcoin use?

  • jake3_14

    Why would a bank, say B of A, for example, allow Dwolla as a payment method, when that would reduce the bank’s interchange revenue from a CC-based payment (assuming that the CC is also a mobile option)?

    • CaityJones

      They can use Dwolla’s technology to give their customers a cash option for paying their contacts from within their mobile banking app. For example, if I want to pay my friend back for dinner and I don’t have paper cash on hand, I could use my banks mobile app. I’d want to pay them with money that I actually have (cash in my bank account) versus on my credit card.

      • jake3_14

        Thanks for the explanation, Caity. Still, P2P are a thin slice of the overall m-payments pie. Can your deal with mFoundry get you a slice of the C2B payments pie?

        • CaityJones

          No problem! Getting in front of as many people as possible is always a great thing. The mFoundry integration is awesome because of the relationships with financial institutions and their customers. We have some great tools/partnerships that we’ve been hard at work on to expand further into B2C. Got some amazing things rolling out here before the end of the year.. stay tuned! :)

  • http://starvedfool.com/ David

    Does this mean I could develop an app to transfer money out of my checking account to my Dwolla account?

    • CaityJones

      The way that Dwolla is built right now, you can transfer money back and forth between your bank account and Dwolla account, simply through your Dwolla account (https://www.dwolla.com/register). Dwolla being integrated into other financial institution’s mobile banking apps will allow customers at those FI’s the ability to use peer-to-peer transfer through their banking app.

      • http://starvedfool.com/ David

        Thanks for the response. But Dwolla doesn’t have an API that allows third-party apps to trigger a transfer from a checking account to their Dwolla account?

        • CaityJones

          Correct, currently we do not have that functionality built into our API.

  • Dwolla Dwolla

    I’m building a map of all the Dwolla retail and wholesale partners. Please contribute: http://goo.gl/maps/91P6g

    • CaityJones

      This is awesome, thanks for sharing!

  • Rebecca

    Is there any way for a financial institution to generate fee income from Dwolla?

    • CaityJones

      With our current full FiSync integration with Veridian CU they do not institute an additional fee for Dwolla transactions. However, it is possible for a bank to tack on their own fee if they were to integrate with Dwolla. We also let developers do something similar, with something called the Facilitator Fee: http://developers.dwolla.com/dev/pages/facilitator.

Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.