In a year when US regulators paused the much-anticipated final rule on Section 1033 of the Dodd-Frank Act, the open banking conversation has become more fragmented than ever with fintechs, banks and infrastructure providers scrambling to anticipate what might come next.
For Dwolla, the Iowa-based account-to-account payments company, the uncertainty is oddly comforting. As CEO Dave Glaser puts it: “It’s great to be Switzerland right now.”
Dwolla doesn’t offer a direct-to-consumer experience. Instead, it sits in the infrastructure layer, helping B2B and B2B2C companies orchestrate funds flow across traditional rails like ACH, real-time payments (RTP and FedNow), and soon, debit-card-based push payments. Its focus is narrow: domestic US money movement. Its position? Arguably the most adaptable player in the room.
While firms like Plaid are adjusting to a post-1033 world (now agreeing to pay JP Morgan for data access under a new tiered pricing model) Dwolla simply adapts. If costs go up, they’ll pass those costs on. If clients want to explore alternatives, from new debit rails to future stablecoin integrations, Dwolla’s platform is already built to orchestrate what the customer needs.
“It’s our job to make the payment flow invisible,” says Glaser. “Whether it’s a claims payout on a Sunday or a recurring insurance premium every six months, we let the client decide the method and optimise for speed, cost, and compliance.”
The business is also 100 per cent domestic. While cross-border expansion is on the horizon with pilot projects launching for debit push-to-card payments and international capabilities in 2025, Dwolla is currently buffered from many of the open banking debates sweeping Europe.
Pressure mounts on infrastructure players
That’s not the case for everyone. Earlier this month, Plaid, the US’s most widely used data aggregator, agreed to a pricing deal with JPMorgan Chase that will see it pay tiered fees for consumer account data. It sets a precedent: data access in the US is becoming a paid product, at least until the 1033 rule is finalised.
Dwolla doesn’t interface directly with bank data in the same way. But it does partner with Plaid (and resells Plaid’s open banking tools), meaning it may eventually pass those costs on. “We’re not in the business of setting policy,” Glaser says. “But if fees rise, we’ll have to reflect that, just like everyone else.”
For now, the company is content to remain infrastructure-agnostic. “We’re like Switzerland,” Glaser adds. “We don’t pick sides; we just help clients move money in the way that works best for their business.”
AI as a force multiplier
Where Dwolla is moving quickly is on AI. The company is building AI agents to help engineers spin up bank adapters, the connectivity logic between its platform and partner institutions, in weeks instead of months.
“Traditionally it might take three to six months to build a new integration,” Glaser explains. “Now, we’re using agentic AI to bring that timeline down to three weeks.”
Each engineer works with a suite of AI agents — from coding to compliance. It’s not a customer-facing use case, but it’s a clear productivity gain. For a company looking to scale across banks and payment rails, it could also be the key to faster expansion.
Stablecoins and real-time alternatives
One area where the company is moving cautiously is digital financial alternatives. Despite growing interest in stablecoins, particularly for cross-border payments, Dwolla isn’t building anything natively yet. It’s taking a “fast follower” approach, waiting for demand from clients and clearer regulatory frameworks.
“There’s definitely excitement in the fintech space,” Glaser says. “But our clients are still solving for more immediate challenges, replacing spreadsheets, automating legacy flows, things like that. Stablecoins are further down the list.”
Still, he notes, clients are asking exploratory questions. And as real-time settlement becomes more common, stablecoins could offer value, especially for controlling costs and reducing FX overheads. Once Dwolla’s debit push capabilities launch, global payouts may follow and with them, renewed interest in stablecoins.
A European lens on US rails
For European readers used to API-driven payment systems and broad regulatory mandates like PSD2, the US environment can appear fragmented. While schemes like RTP and FedNow are expanding, adoption has been gradual and voluntary. Use cases like pay-by-bank at retail remain rare.
Glaser doesn’t see this as a disadvantage. “In the US, innovation often comes from the market, not the regulator,” he says. “It’s slower, but the flexibility can lead to better infrastructure long term.”
That same flexibility is what allows Dwolla to operate with minimal regulatory exposure. But it also means the cost of participation is shifting, often to aggregators, fintech’s, or platforms. The ripple effects are still playing out.
For now, Dwolla is focused on what it does best, optimising domestic payment flows for enterprise clients and preparing for what’s next.
“As our clients grow, we’ll grow with them,” Glaser says. “Whether that’s across borders, or onto new rails, we’ll be ready.”
What is Section 1033 of the Dodd-Frank Act?
- Origin and iintent: Section 1033 of the Dodd-Frank Act gives consumers the right to access and direct their financial data.
- The intended rule: The CFPB is drafting a final rule to specify standards on data access, security, liability and third-party certification.
- Delay and implications: That rule has been delayed, creating a regulatory limbo.
- Why it matters: Without it, the US open banking ecosystem lacks clarity and access costs may rise until regulation is final.
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