NMI has acquired Dwolla in a move designed to expand its embedded payments infrastructure with stronger account-to-account money movement capabilities. The deal combines NMI’s payment acceptance, onboarding and merchant lifecycle tools with Dwolla’s API-first bank payment technology. Together, the companies aim to give platforms, software providers and payments organizations a broader way to accept, manage and move funds through a single embedded payments provider.
A Strategic Expansion in Embedded Payments
The acquisition adds Dwolla’s account-to-account payments, real-time payment connectivity, FedNow-related capabilities, open banking tools and payout infrastructure to NMI’s platform. NMI said the combined offering will support more payment rails and use cases, ranging from customer sign-up through settlement and payout. The transaction also increases NMI’s scale, creating a combined business that processes close to $700 billion in annual transaction volume.
Why Dwolla Matters to NMI
Dwolla has built its reputation around API-based bank payment infrastructure that helps businesses move money across ACH and real-time payment networks. Its platform is used by more than 400 customers, including businesses that need complex funds flow, reporting, exception handling and payout capabilities. By bringing Dwolla into its ecosystem, NMI strengthens its position beyond payment acceptance and further into embedded money movement.
Market Context and Customer Impact
The deal comes as account-to-account payments continue gaining momentum among businesses seeking faster, more flexible and lower-friction payment options. NMI cited industry projections showing global A2A transaction value could rise significantly by 2030, supported by the growth of real-time payment systems. For ISOs, ISVs, PayFacs, financial institutions and SaaS platforms, the expanded platform is expected to support use cases such as marketplace payouts, lending payments, payroll, B2B transactions, supplier payments and healthcare-related payments.
Leadership and Integration Plans
NMI said it will continue supporting Dwolla’s existing customers and partners while integrating Dwolla’s capabilities into its own white-label embedded payments platform. Approximately 60 Dwolla employees will join NMI as part of the transaction, and Dwolla CEO Dave Glaser will become NMI’s Chief Operating Officer. His role is expected to help maintain continuity for Dwolla customers while guiding the integration of Dwolla’s technology into NMI’s broader infrastructure.
Broader Platform Ambitions
NMI described the acquisition as part of a longer-term strategy to build a more complete embedded payments platform across the full payments lifecycle. The company has made several acquisitions in recent years to expand its capabilities in acceptance, onboarding, merchant lifecycle management, managed acquiring and risk. With Dwolla, NMI is adding a deeper layer of bank payments, payouts and advanced funds movement infrastructure to serve partners that want fewer vendors and more flexible payment options.
Financial terms of the acquisition were not disclosed, with Berenson & Company advising NMI and Keefe, Bruyette & Woods advising Dwolla. For Dwolla customers, the deal offers continued access to familiar bank payment infrastructure while opening the door to NMI’s broader acceptance capabilities across card, mobile, online, in-store and unattended payments. For NMI, the acquisition reinforces its push to become a more comprehensive embedded payments infrastructure provider at a time when businesses increasingly expect payments platforms to support both acceptance and money movement.