|Type of business||Private|
Type of site
|Online payment system|
|Headquarters||Des Moines, Iowa|
|Registration||Required (can be done through API)|
|Users||500,000 (Fall 2013)|
|Launched||December 1, 2010||
The company was founded in 2008 with services based only in Iowa, and having two employees. After raising US$1.31 million in funding, Dwolla launched in the United States on December 1, 2010, with founders Ben Milne (CEO) and Shane Neuerburg (CTO), in Des Moines, Iowa, and initially with a few small banks and retailers. By June 2011, Dwolla had grown to 15 employees and 20,000 users, and it processed $1 million in a week for the first time.
Products and services
On May 25, 2011, Dwolla released its FiSync integration, which aims to allow instantaneous transactions instead of the typical 2–3 day of the ACH Network transactions. As of June 2011[update], Dwolla had 11 financial institutions signed on, providing access to 600,000 potential customers. Dwolla quietly discontinued FiSync on January 31, 2017.
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. 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 service. In February 2015, the US Treasury Department's Bureau of Fiscal Service added Dwolla to the system which allows US Federal agencies to issue and receive electronic payments.
Inadequate security practices
On February 27, 2016, the Consumer Financial Protection Bureau (CFPB) released its first data security-related enforcement action against Dwolla, Inc. Relying on its UDAAP-related authority, the CFPB alleged that Dwolla failed to maintain adequate data security practices despite representations made on the company website and in communications with consumers that the company has implemented practices that exceed industry standards. Among other requirements, Dwolla has agreed to settle and must cease making any misrepresentations about its data security practices.
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Today, Dwolla is only available in the U.S., but we’re always exploring ways we can expand to help every small business move money quickly and safely.
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