||This article contains content that is written like an advertisement. (January 2014)|
|Headquarters||Des Moines, Iowa|
|Type of site||Online payment system|
|Users||500,000 (Fall 2013)|
|Launched||December 1, 2009|
The company was founded in 2008 with services based only in Iowa. After raising US$1.31 million in funding, 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. Transactions using Dwolla surpassed $1 million a week and its Iowa user-base was overtaken in mid-June 2011, with 20,000 users. The company began with two employees and had approximately 15 employees as of mid-June 2011.
Dwolla used to be notable for its interest among users of Bitcoin, a digital currency. Some Bitcoin exchanges allowed users to buy Bitcoins with dollars transferred to the exchange via Dwolla, and allowed users to sell Bitcoins and have the proceeds transferred back to them using Dwolla. Although Dwolla representatives said that they saw growth due to Bitcoin users, they did not offer any official endorsement of Bitcoins. According to Dwolla customer support, Dwolla ceased dealing with bitcoin exchanges in October 2013.
Additional 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 Automated Clearing House (ACH) transactions. As of June 2011[update], Dwolla has 11 financial institutions who have signed on, providing access to 600,000 potential customers.
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. 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). There is no cost for sending or receiving funds under those limits.
State and government implementations of Dwolla
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.
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.
- "International availability". Dwolla.com.
- Tsotsis, Alexia (March 25, 2011). "Dwolla's FiSync Lets You Instantly Access Cash, Eliminates ACH Wait Times For Banks". TechCrunch. Retrieved January 22, 2012.
- Wood, Geoff (December 1, 2009). "Dwolla launches in Iowa". Silicon Prairie News. Retrieved January 22, 2012.
- Alexia, Tsotsis (June 16, 2011). "Payments Service Dwolla Hits $1M A Week In Transactions". TechCrunch. Retrieved January 22, 2012.
- Milne, Ben (June 17, 2011). "We've officially passed $1M a week in transactions". Dwolla blog. Retrieved January 22, 2012.
- Needleman, Rafe (December 17, 2010). "Cash is dead, says Dwolla". CNET News. Retrieved January 22, 2012.
- Schreiber, Danny (June 21, 2011). "Bitcoin: What is it and how is Dwolla involved in its marketplace?". Silicon Prairie News. Retrieved January 22, 2012.
- Spaven, Emily (10 October 2013). "Dwolla shuts doors to bitcoin companies and virtual currency exchanges". Retrieved 27 June 2015.
- "Iowa Government: Dwolla and Electronic Payments In, Paper Checks Out". www.creditcardprocessingspace.com. Retrieved April 17, 2013.