There’s a tiny 12-person startup churning out of Des Moines, Iowa. Dwolla was founded by 28-year-old Ben Milne as an innovative online payment system that sidesteps credit cards completely. Milne has no finance background yet his little operation is moving between $30 and $50 million per month; it’s on track to move more than $350 million in the next year.
With Dwolla, payments are made directly from your bank account. No credit or debit cards are allowed. And because they don’t exist in the system, we don’t have to bring the fees into the system. You can spend any amount of money and when you do that, the person on the other end doesn’t have to pay 1, 2, 3 or 4%. Unlike Paypal, Dwolla doesn’t take a percentage of the transaction. It only asks for $0.25 whether it’s moving $1, $1,000, or $5,000. Obviously PayPal becomes very cost prohibitive with those larger transactions.
Personally, I think this is THE best thing that could happen at this particular point of time in our economy – we NEED more competition like this, that stands the industry models on edge and says, “We are TIRED of the same old, broken, expensive, money-sucking model of [gouging] the consumer at every turn!” Go Dwolla!
Full Story at Alyson Shontell via Business Insider
- Dwolla, The Tiny Iowa Company That’s Trying To Kill Credit Cards, Makes All Transactions Under $10 Free (businessinsider.com)
- This 28-year-old’s Iowa startup moves $350 million a year. (businessinsider.com)
- Dwolla Drops Fees For Transactions Under $10 In Prelude To Larger Announcement (techcrunch.com)
- In 2015, Will Credit Cards and Banks Cash In on Black Friday? (fool.com)
- Dwolla, Online Cash-Based Payment System Bypasses Credit Cards (laughingsquid.com)
- Visa’s New Competitor: Dwolla? (abcnews.go.com)