Douugh partners with Pinwheel for automatic direct deposit switching
New York-based fintech Douugh has formed a new partnership with income and payroll connectivity API provider Pinwheel, to facilitate automatic direct deposit switching for its US customers.
Currently, Douugh’s customers are limited to manual direct deposit switching, but with access to income and employment data through the partnership, it can enable electronic direct deposit setup.
According to research published by emarketer in December 2021, the ability to set up direct deposit electronically is the second most-requested mobile banking feature among consumers, who called the feature “extremely valuable”.
Using Pinwheel’s API, Douugh has ambitions to become a “one-stop-shop for all its users’ money management needs”.
Douugh founder and CEO Andy Taylor said: “We are excited about partnering with Pinwheel to be able to make it effortless for US customers to switch their payroll to Douugh.
“Our efforts to date have been focused around making it easier for people to switch their primary banking relationship to Douugh in order to unlock the platform revenue opportunities.”
While Pinwheel’s API captures more deposits, it also sets up a secure, consumer-permissioned point of connectivity to a user’s payroll account, which “opens doors to launching other products”.
Kurtis Lin, co-founder and CEO of Pinwheel, added: “With consumer permissioning, Pinwheel covers over 1,500 platforms and nearly 80% of anyone receiving a paycheck in the US, unlocking the power of the income layer so that Douugh can grow their share of wallet, and also build new and innovative products to deepen customer engagement.
“We look forward to partnering with Douugh to drive the next wave of fintech innovation.”
Last month, Douugh secured $20 million in discretionary equity funding from Long State Investments, in an agreement which gives it access to “flexible” growth capital.