Private equity-backed payment infrastructure provider NMI has acquired Dwolla, expanding its presence in the embedded payments market. NMI specializes in payment processing solutions that enable businesses to integrate payment capabilities directly into their platforms. The acquisition strengthens NMI's position in the growing embedded finance sector.

The deal comes as embedded finance continues to gain traction across various industries, with businesses increasingly seeking seamless payment integration. Dwolla brings specialized payment technology to NMI's portfolio, potentially enhancing its offerings for fintech clients and expanding the company's market reach.

Financial terms of the acquisition were not disclosed, but the move positions NMI to better compete with other payment processing firms targeting the embedded finance market. The acquisition aligns with broader trends of private equity firms investing in financial technology companies that benefit from digital transformation.