Dwolla

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Dwolla
Dwolla logo.png
Type Private
Headquarters Des Moines, Iowa
Founder(s)
Website www.dwolla.com
Type of site Online payment system
Registration Required
Users 500,000 (Fall 2013)
Launched December 1, 2009
Current status Active

Dwolla /dəˈwlə/ is a United States-only[1] e-commerce company that provides an online payment system and mobile payments network.

History[edit]

The company was founded in 2008 with services based only in Iowa. After raising US$1.31 million in funding,[2] Dwolla launched in the United States on December 1, 2009, with founders Ben Milne (CEO) and Shane Neuerburg (CTO), in Des Moines, Iowa, and with initially just a few small banks and retailers.[3] Transactions using Dwolla surpassed $1 million a week and its Iowa user-base was overtaken in mid-June 2011, with 20,000 users.[4] The company began with two employees and had approximately 15 employees as of mid-June 2011.[5]

Dwolla began with Veridian Credit Union for banking services, while The Members Group processes their transactions.[6]

Additional products and services[edit]

FiSync[edit]

On May 25, 2011, Dwolla released its FiSync integration, which aims to allow instantaneous transactions instead of the typical 2–3 day of the Automated Clearing House (ACH) transactions.[2] As of June 2011, Dwolla has 11 financial institutions who have signed on, providing access to 600,000 potential customers.[3]

Primary service[edit]

Previously, Dwolla had charged flat fees of $0.25 per transaction over $10 (instead of a percentage fee). On June 2, 2015, Dwolla announced that was removing all fees.[7] Dwolla has now switched to a Freemium model, with free basic sending/receiving of money (up to a $5,000 limit for personal accounts, or a $10,000 limit for business, government or nonprofit accounts).[8] There is no cost for sending or receiving funds under those limits.[9]

State and government implementations of Dwolla[edit]

As of April 2013, the Iowa Department of Revenue allows businesses that pay cigarette stamp taxes to now use Dwolla as a method of payment, helping reduce the time payments take as well as reducing processing costs.[10]

Iowa Governor Terry Branstad announced on January 6, 2014 that the state will expand the partnership to allow customers of Iowa Department of Transportation to pay fuel tax and vehicle registration costs online using the low-fee service.[11]

See also[edit]

References[edit]

  1. ^ "International availability". Dwolla.com. 
  2. ^ a b Tsotsis, Alexia (March 25, 2011). "Dwolla's FiSync Lets You Instantly Access Cash, Eliminates ACH Wait Times For Banks". TechCrunch. Retrieved January 22, 2012. 
  3. ^ a b Wood, Geoff (December 1, 2009). "Dwolla launches in Iowa". Silicon Prairie News. Retrieved January 22, 2012. 
  4. ^ Alexia, Tsotsis (June 16, 2011). "Payments Service Dwolla Hits $1M A Week In Transactions". TechCrunch. Retrieved January 22, 2012. 
  5. ^ Milne, Ben (June 17, 2011). "We've officially passed $1M a week in transactions". Dwolla blog. Retrieved January 22, 2012. 
  6. ^ Needleman, Rafe (December 17, 2010). "Cash is dead, says Dwolla". CNET News. Retrieved January 22, 2012. 
  7. ^ http://blog.dwolla.com/free-bank-transfers/
  8. ^ https://www.dwolla.com/limits
  9. ^ https://www.dwolla.com/pricing
  10. ^ "Iowa Government: Dwolla and Electronic Payments In, Paper Checks Out". www.creditcardprocessingspace.com. Retrieved April 17, 2013. 
  11. ^ http://www.desmoinesregister.com/article/20140106/BUSINESS04/301060078/State-Iowa-expands-partnership-Dwolla?gcheck=1&nclick_check=1

External links[edit]