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May 22, 2023

Dwolla Integration Use Cases and Developers

May 22, 2023
Read 9 min

Many businesses have recognized the value of Dwolla as a tool that enables quick and smooth payments without requiring significant amounts of time or resources. By integrating Dwolla into their solutions, companies across industries have been able to streamline their payment processes along with offering greater convenience and flexibility to their clients.

In this article, we will delve into the use cases of Dwolla, exploring its potential applications across a wide range of industries and business types. We will explain how the platform works and highlight the key benefits that businesses can derive from using it. Additionally, we will provide a step-by-step guide on how to integrate Dwolla API with your existing solution, so that your business can start taking advantage of all that this powerful payment tool has to offer.

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What is Dwolla and how does it work?

Dwolla is a US-based payment service provider that offers an online payment system and modern API for businesses to seamlessly connect to payment networks. Dwolla API (Application Programming Interface) enables developers to integrate Dwolla’s functionality into their own applications or platforms. Launched in 2010, Dwolla provides more than 500 companies across over 160 countries with a secure and convenient way to pay and get paid via bank transfers and ACH transactions. It’s also widely used as a P2P solution to send, receive, and facilitate the movement of money.

Here’s a step-by-step process for using Dwolla as an individual user:

  1. Create an account. A user creates an account and provides their bank account information; upon identity verification, the user’s bank account is connected to the Dwolla account and verified.
  2. Fund the Dwolla account. The user can transfer money from their linked bank account to their Dwolla account – this can be done via ACH.
  3. Send and receive payments. The user can send money from their Dwolla account to others or receive money from them using email addresses, phone numbers, or Dwolla API integrations.
  4. Bank transfers. The user can also transfer money between their Dwolla account and their linked bank account.

As for businesses, they can incorporate Dwolla’s features directly into their software through a simple disbursement option from the dashboard. There is another option – a sophisticated integration involving multiple funds flows and payment methods to initiate account-to-account transactions.

Before initiating payments, the provider reviews your business’s use of their technology and ensures that their requirements are met. For this reason, the provider suggests carefully examining Dwolla API docs and requirements before beginning the integration process.

Do you need help integrating Dwolla into your system? We’re an authorized consulting and development partner of Dwolla, so we know how to do it right. We’ve done this for our clients before and would be happy to help you too. Contact us to discuss the details.

Money transfers, P2P & B2B payments

Dwolla supports both P2P and B2B payments, including disbursements, which allow businesses to pay their contractors or send money to customers. As for money transfers, ACH, wire, or real-time payments (RTP) are available:

  • ACH payments are the most common and work for both people and businesses. They are often used for things people pay regularly, like rent or subscription fees.
  • Wire transfers are better for bigger or time-sensitive payments, like B2B transactions or expensive purchases (e.g., real estate purchases, etc.).
  • Real-time payments are a new payment method. However, its popularity is increasing rapidly due to the speed and convenience it offers– RTP payments allow moving money between accounts instantly.

Please note that although Dwolla provides wire transfers, it may limit the allowed transaction amount depending on your transaction history. This is because Dwolla takes fraud prevention very seriously, and the limits are put in place to protect both you and Dwolla from potential fraudulent activity. However, it is important to note that as you establish a positive transaction history with Dwolla, the limit can be increased over time when solvency is proven. This means that as you continue to use Dwolla for legitimate transactions, you will be able to gradually increase the transaction amount that you are allowed to make. This is just one of the many ways that Dwolla works to ensure a secure and trustworthy platform for all of its users.

Dwolla Integration Use Cases

Payment functionality can be utilized in a variety of systems across multiple industries, so it’s impossible to cover all use cases of Dwolla integration. The common ones include:

  • financial services – digital banking, savings and investment apps, lending and loan servicing, insurance, invoice processing, etc.
  • e-commerce & marketplaces
  • healthcare
  • real estate
  • transportation
  • fundraising and charity

On its website, Dwolla describes how its clients from different spheres benefit from the integration:

  • an investment platform utilizes ACH money transfers to cut the fundraising process and facilitate frictionless and convenient investing;
  • a fintech platform uses real-time payments to provide its contractors with daily payouts;
  • an insurer automates claim reimbursement with the help of ACH;
  • a non-profit organization increases charitable giving by 200% with account-to-account transfers; etc.

As you can see, many organizations are using Dwolla to streamline and accelerate money transfers and payments, enhance customer experience, and automate processes. In addition to payment functionality, Dwolla also acts as a KYB provider that verifies the user’s business identity before allowing them to make payments through the platform.

This is precisely what Dwolla does for our client’s project. For a Western Europe-based startup we developed an online B2B invoicing and billing platform that enables businesses to issue and send invoices and receive timely payments. It is integrated with multiple third-party providers, including Dwolla, which acts as a payment and KYB provider. To learn more about the projects and the utilization of Dwolla read the case study.

How to Integrate Dwolla with Your Solution

To integrate Dwolla with your solution, follow these steps:

  1. First, create a Dwolla account by visiting the Dwolla website and completing the verification process. This process is important as it ensures that the user is legitimate and can be trusted to carry out transactions.
  2. Next, ensure that your solution meets Dwolla’s requirements. For instance, your payment process should be clear and straightforward to users. In addition, ensure that you display Dwolla’s privacy policy to users and prompt them to accept it. This is important as it ensures that users are aware of their rights and what to expect from using the platform.
  3. Determine whether your payments require user or business verification. If verification is required, you will need to implement the necessary steps to ensure that your solution is secure and reliable. This step is important as it helps to prevent fraudulent activity and ensures that users can trust your solution.
  4. Determine the business logic for your payments and use the corresponding Dwolla API requests to make it work. This step is crucial as it ensures that your solution is customized to your specific needs and is tailored to your business requirements.
  5. Finally, test your solution in Dwolla Sandbox to verify its correctness and expected results. Make any necessary changes to correct the solution. It is important to thoroughly test your solution to ensure that it works as expected and that all potential issues have been identified and addressed. This step will help to ensure that your solution is reliable and meets the needs of your business and customers.

Any questions? Drop us a line.


Dwolla Integration Costs

On average, integration with Dwolla including back-end and front-end development will require between 200 and 300 hours. Given that an average hourly rate of a developer is $45, it’ll cost between $9,000 and $13,500. Please note that this is a ballpark estimation that doesn’t include Dwolla services fees. For more accurate numbers, contact our specialists.

Top Dwolla Integration Developers

Your in-house team can not implement integration with Dwolla or you don’t have one? No worries – below you’ll find a list of top Dwolla integration developers. These companies have extensive experience integrating the provider with various software systems so you can be sure that everything will be done at its best.

1. Itexus

Itexus is a professional fintech application development company and an authorized consulting and development partner of Dwolla. Under its belt, there are 300+ software solutions delivered to more than 250 clients across the globe. The company provides full-cycle development services, including integrating third-parties services. Itexus built a long-lasting partnership with Dwolla and can help you seamlessly integrate your software with it, as well as with other service providers such as data aggregators, payment gateways, and other financial APIs.

2. MentorMate

MentorMate designs and develops software solutions for healthcare, manufacturing, education, finance, and agriculture industries. The team is well-versed in tech and strives to deliver scalable, flexible, and secure solutions. Having extensive experience in picking and integrating third parties according to their clients’ needs and goals, MentorMate can help you with Dwolla integration.

3. Radixweb

Radixweb can either provide you with Dwolla developers to reinforce your in-house team or take all of the work onto themselves. With deep domain experience in web, mobile, cloud, and DevOps, the company is committed to helping its customers accelerate revenue growth and outperform the competition. Radixweb is known for its speed and transparency, so seamless and trouble-free integration is guaranteed.

4. Edvantis

Edvantis is a flexible software development vendor that offers multiple engagement models. The team has a deep understanding of the financial services industry, as well as solid expertise in third-party services integration  (e.g., Plaid Dwolla integration). Edvantis is a company of choice if you need not just a development team but a partner that will advise you on the best approach and support your further growth.

5. Woodridge Software

Woodridge Software builds custom mobile and web applications for enterprises tying them with multiple 3rd party systems, so for them, it’ll be a piece of cake to integrate your software with Dwolla, as well as with other providers. The firm serves businesses across multiple industries including financial services, healthcare, insurance, Education, and more. Woodridge Software has a wide talent pool, including experienced and skilled Dwolla developers. Client praise Woodridge Software for its strong management skills and responsiveness.


Allowing for easy integration into existing software and supporting various payment methods, Dwolla is a versatile option for businesses of all sizes and industries looking to streamline their payment processes. By using Dwolla, businesses can save time and money, while also providing their customers with a convenient and secure payment method. Overall, Dwolla is a reliable and efficient payment platform that is worth considering for any business looking to improve their payment processes.

As an authorized consulting and development partner of Dwolla, we at Itexus have a deep understanding of how to integrate Dwolla with your solution in the most resource-efficient manner possible. Our team of experts will work closely with you so that you can take full advantage of all that Dwolla has to offer. We’ll also provide you with ongoing support and maintenance to ensure that your integration remains up-to-date.

Want to learn more about Dwolla integration? Contact us to discuss your specific needs and find out how our team can help.

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