Embedded payments infrastructure company NMI has acquired account-to-account (A2A) payment infrastructure innovator Dwolla.
The acquisition creates a combined entity that will process nearly $700 billion in annual transaction volume and will fortify NMI’s status as a major embedded money movement infrastructure firm.
Dwolla has been a Finovate alum since 2011, winning Best of Show honors in its appearances at FinovateSpring 2011 and FinovateSpring 2012.
Embedded payments infrastructure company NMI has acquired account-to-account (A2A) payment infrastructure provider Dwolla. The acquisition combines NMI’s payment acceptance, channel distribution, onboarding, and merchant lifecycle management with Dwolla’s capabilities in account-to-account infrastructure, real-time payments, open banking, and many-to-many funds flow. NMI will benefit from additional payment acceptance, orchestration, and money movement capabilities, enabling its ISO, ISV, and SaaS platform clients to accept, manage, and move money across a greater number of rails and use cases via a single infrastructure provider.
“This acquisition is a continuation of our strategy to build the most robust, white-label, embedded payments platform for our channel and enterprise partners,” NMI CEO Steve Pinado said. “Dwolla gives us modern, API-first, A2A infrastructure that strengthens our ability to help businesses accept, manage, and move money across more uses cases and more rails.” Pinado also noted that the acquisition will enable NMI to be a player in the emerging generation of money movement technologies and solutions including agentic payments and stablecoin-enabled settlement.
The acquisition creates a combined entity that will processes nearly $700 billion in annual transaction volume and fortify NMI’s status as a major embedded money movement infrastructure firm. NMI currently supports more than 6,000 technology partners with its modular, white-label platform, enabling them to provide seamless, scalable payment experiences across online, in-app, brick-and-mortar, mobile, and unattended channels. Courtesy of the Dwolla acquisition, NMI’s partners will be able to build on NMI’s capabilities to offer bank and real-time payments, and other sophisticated payment flows such as marketplace seller payouts, loan disbursements, payroll, supplier payments, and more. This will enable these companies to serve firms in industries ranging from insurance and lending to property management and healthcare.
In a statement, Dwolla CEO Dave Glaser noted how Dwolla has helped companies operate bank payments at scale thanks to an API-first infrastructure layer that unifies ACH and real-time rails while standardizing status, exception handling, and reporting. He also outlined how he thinks the combination of Dwolla and NMI will improve the payments process for businesses. “By joining NMI, we can bring those capabilities to a broader ecosystem of partners, while giving Dwolla customers access to NMI’s omnichannel payment acceptance capabilities through a single, flexible, white-label platform. Together, we can help software companies, payment professionals, and fintech innovators deliver more ways to pay and move money with less complexity.”
Founded in 2008 and headquartered in Des Moines, Iowa, Dwolla has been a Finovate alum since winning Best of Show in its Finovate debut at FinovateSpring 2011. A pioneer in peer-to-peer (P2P) and account-to-account (A2A) payments, Dwolla was among the first fintechs to offer lower-cost money transfers, direct ACH connectivity, and a developer-friendly, API-first strategy that enabled companies to embed payment capabilities into their platforms. Ahead of its time then, Dwolla has since benefitted from a surge in interest in account-to-account payments and embedded finance, facilitating more than 126 million transactions a year with an annual transaction value of more than $82 billion.
Schaumburg, Illinois-based NMI was founded in 2000. The company offers a modular payment acceptance platform and gateway that enables SaaS platforms, ISOs, banks, and other financial institutions to leverage payments to boost growth, drive loyalty, and develop new revenue streams. NMI’s technology serves more than 1.2 million active merchants, more than 235,000 connected devices, and features 150+ processor connections to give its partners flexibility to design the payment experiences that best suit their unique needs and business models. Dwolla is NMI’s most recent acquisition, having acquired Sphere Commercial Division in 2023 and Finovate alum Agreement Express in 2022.
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