🎧 Dwolla CEO Dave Glaser: Pay-by-bank, running an Ironman, and where US payments go from here
Dec 5, 2024
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In this engaging discussion, Dave Glaser, CEO of Dwolla and former executive at Visa and Mastercard, shares insights from his extensive fintech career. He delves into the evolution of payment solutions, highlighting the shift from credit cards to bank payments. Glaser discusses the impact of regulations and innovations like biometric payment technologies. Beyond fintech, he shares his journey training for an Ironman, balancing professional and personal passions while enjoying the transformative nature of triathlons.
Dwolla's transition towards serving mid-sized and large enterprises highlights its focus on innovative pay-by-bank solutions and open banking technologies.
The emphasis on advanced security measures like biometric authentication reflects the industry's commitment to combating evolving fraud tactics in digital payments.
Deep dives
Evolution of Payments at Douala
Douala has transitioned several times since its inception, evolving its product offerings to meet changing market demands. Initially focused on simplifying payment processes for small businesses and consumers, Douala sought to reduce transaction costs and provide a user-friendly alternative to traditional payment methods. As competition in the fintech landscape intensified, Douala strategically pivoted towards serving fintech startups, offering them developer tools for embedded bank account payments. Recently, Douala has shifted its focus towards mid-sized and large enterprises looking to innovate through pay-by-bank solutions and open banking technologies, capitalizing on its established infrastructure and partnerships with major financial institutions.
The Role of Open Banking and Pay-by-Bank Solutions
Open banking and pay-by-bank solutions are reshaping how both consumers and businesses handle payments in the U.S. By leveraging existing banking infrastructure, including the ACH network, Douala aims to modernize payment processes and enhance transaction efficiency. This approach caters not only to businesses looking to streamline their payment systems but also to consumers who prefer bank-based transactions for everyday expenses. The integration of these solutions promises to lower costs and improve the customer experience by allowing seamless, account-to-account transfers without relying on traditional card networks.
Challenges and Innovations in Payment Security
With the rise of digital payment solutions, the issue of security remains a critical focus for Douala and the broader payments ecosystem. As payment methods evolve, so do the tactics employed by fraudsters, necessitating continuous innovation in fraud prevention and data protection. Companies like Douala are adopting advanced methods, such as biometric authentication and tokenization, to enhance payment security and protect sensitive consumer information. The industry is also calling for standardized security practices to ensure that the growing pay-by-bank sector is as secure as traditional card-based transactions.
Emerging Trends in Payment Orchestration
Looking ahead, orchestration in the payments space is being identified as an area ripe for innovation, allowing businesses to streamline their payment processes. By utilizing machine learning and automated routing, merchants could benefit from a more dynamic and efficient payment system that adapts to their specific needs. This model enhances the flexibility of payment options, enabling merchants to respond quickly to evolving consumer preferences and cost considerations. As payment orchestration gains traction, it is expected to play a pivotal role in the future of payments, helping businesses optimize their processing strategies across multiple channels.
We're lucky to be joined today by Dave Glaser, CEO of American payments giant Dwolla, one of the first fintechs.
Dwolla is a fintech company that provides businesses with a connection to the ACH Network or RTP Network (The Clearing House’s privately-owned real-time payments network).
The company was founded in 2008 and launched in the United States in December 2010 to a few small banks and retailers. By June 2011, Dwolla had grown to 15 employees, 20,000 users, and $1 million in weekly processing volume.
Today, Dwolla has about 650 clients and about 30 million users. It processed $45 billion in payments in 2022, up from $30 billion in 2021 and $20 billion in 2019. About 80% of its clients are small businesses.
Dwolla provides a white label service consisting of APIs to use the ACH system[9] and white label services expanded from payouts to include instant bank authorization for debiting bank accounts.
Dave Glaser has a long history in fintech: Starting at the turn of the century, he led payment protection and anti-fraud company CyberSource through its 2014 acquisition by Visa, before going on to join Worldpay in the UK as its Chief Product and Marketing Officer for Global eCommerce. Coming back to the US, Dave was brought on by Mastercard as a Senior Vice President for Acceptance Solutions, before being offered the President and COO role at Dwolla and stepping up as CEO in 2023.
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