For its embedded payments platform, NMI acquired Dwolla, adding API-first account-to-account, real-time payment, FedNow and payout capabilities, with Francisco Partners, Insight Partners and Great Hill Partners backing the buyer.

The transaction brings more than 400 Dwolla customers and approximately 60 employees into NMI and takes combined annual transaction volume to close to $700 billion.

Dwolla provides account-to-account payment infrastructure for ACH, real-time payments, open banking and many-to-many funds flow.

Its APIs are used by software platforms, fintechs and enterprises embedding payments, including use cases such as marketplace seller payouts, loan disbursements and repayments, payroll, B2B payments and supplier payments.

NMI provides white-label embedded payments infrastructure for SaaS platforms, ISOs, PayFacs, banks and other channel partners.

The company previously processed more than $600 billion annually and served more than 6,000 technology partners across online, in-app, in-store, mobile and unattended payment environments.

NMI said it will continue supporting Dwolla customers and partners while integrating the company's bank payment infrastructure into its platform.

Dave Glaser, CEO of Dwolla, will join NMI's executive leadership team as chief operating officer.

Berenson & Company served as financial advisor to NMI.

Keefe, Bruyette & Woods, A Stifel Company, acted as exclusive financial advisor to Dwolla.