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What is Straddle?

The all-in-one platform for building better bank payments

Chad Willard avatar
Written by Chad Willard
Updated over 2 months ago

You can view this page on our documentation site here.

With open banking, identity verification, and account-to-account money movement in a single API

Straddle is a payment infrastructure platform that combines identity verification and open banking to enable secure, fast bank payments. Our API allows businesses to verify customer identities, connect to customer bank accounts, and initiate payments - all through a single integration. By linking verified identities directly to bank accounts, Straddle reduces fraud risk and enables debit-like performance and funding speed without the interchange fees.

Straddle works by providing a suite of APIs and tools that businesses integrate into their applications. The core of our system is the concept of a “Paykey” - a secure token that represents a verified identity linked to a specific bank account. When a customer connects their bank account through Straddle (either via our open banking connections or by providing account and routing numbers), we verify their identity and create a Paykey. This Paykey can then be used to initiate both payments and payouts securely.

Building on Straddle can help you streamline payment operations, reduce fraud, and offer customers a smoother, more secure payment experience.

Whether you’re a small startup or a large enterprise, Straddle provides the tools you need to handle complex payment scenarios with ease.

​Core Functionality

Identity First

Identity First: Onboard and verify individual or business customers in less than a second using Straddle ID, a graph-defined identity engine.

Powered by Open Banking

Powered by Open Banking: Connect customer identity to open banking data via Bridge, Straddle’s “no-code” widget, or use existing tokens from providers like Mastercard (Finicity), Plaid, and MX.

Secure Payments

Secure Payments: All payments are protected with built-in balance confirmation and real-time fraud detection through Watchtower, Straddle’s transaction monitoring risk engine.

Faster Money Movement

Faster Money Movement: Built-in balance and risk scores enable 24-hour direct debits, with payouts via dynamic multi-rail orchestration across ACH, RTP, and FedNow (coming soon).

Compliant by Default

Compliant by Default: Integrated KYC, watchlist screening, and transaction monitoring ensure robust compliance without additional engineering overhead.

Developer-Friendly

Developer Friendly: A single, secure API stack that simplifies complex infrastructure into easy-to-implement code.

How Straddle Works

Straddle operates by allowing your customers (individuals or businesses) to connect their financial accounts to your application. This connection process is facilitated through Bridge, Straddle’s account connectivity suite, which provides a secure open banking flow.

1

Customer Creation and Identity Verification

Use Straddle’s API to create a customer profile. Straddle automatically verifies the customer’s identity using the provided information, leveraging its built-in identity verification system.

2

Account Connection

Implement Bridge to allow customers to securely connect their bank accounts. This can be done through Straddle’s drop-in widget or by using existing tokens from supported providers.

3

Paykey Creation

Once a bank account is connected, a Paykey is created. This is a secure token linking the verified identity to the payment method.

4

Pay by Bank

Use the Paykey to initiate charges or payouts through Straddle’s API, benefiting from built-in fraud detection and compliance checks. Returning customers skip right to this step!

Core Products

Straddle offers four core products that work together to provide a comprehensive payment solution:

Identity

Straddle’s Identity product is the foundation of our platform, providing robust customer management and identity verification features:

  • Instant onboarding and verification of individual or business customers

  • Utilizes Straddle ID, a graph-defined identity engine

  • Integrated KYC and AML compliance checks

  • Manages customer profiles, including contact information and payment preferences

  • Real-time fraud detection through Watchtower, our transaction monitoring risk engine

Bridge

Bridge is our account connectivity suite that securely links users to their financial accounts:

  • Offers a drop-in open banking widget connecting to 90% of US bank accounts

  • Supports existing third-party tokens from providers like Plaid, MX, and Finicity

  • Provides API-based bank account verification for “out of network” banks

  • Generates Paykeys, secure tokens linking verified identities to payment methods

  • Enables balance checks and account information retrieval

Note - Bridge also supports manual entry of routing and account numbers. This feature is particularly useful for existing customers or in situations where an open-banking connection isn’t possible. It ensures that you can create Paykeys and process payments even when direct bank connectivity isn’t available or preferred.

Pay by Bank

Pay by Bank is Straddle’s unified payment processing solution:

  • Uses Paykeys generated by Bridge to initiate charges or payouts

  • Supports various payment rails including ACH, RTP, and FedNow (coming soon)

  • Provides built-in fraud detection and compliance checks for all transactions

  • Enables 24-hour direct debits with built-in balance and risk scoring

  • Offers a simple API for initiating and managing payments

Embed

Embed is our solution for platforms, allowing them to offer Straddle’s capabilities to their own users:

  • Purpose-built API stack for software providers, marketplaces, and payment facilitators

  • Allows platforms to extend and monetize Straddle’s payments infrastructure

  • Provides white-label solutions for identity verification, account linking, and payment processing

  • Handles regulatory compliance, reducing liability for platforms

  • Offers flexible integration options to suit various platform architectures

These core products work seamlessly together, enabling you to quickly implement sophisticated payment functionality, reduce fraud, and provide a seamless experience for your users.



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