Dwolla
Encyclopedia
Dwolla is a cash-based e-commerce company that provides an online payment system and mobile payments network by the same name. The company was founded in 2008 with services based only in Iowa. After raising $1.31 million in funding , Dwolla launched nationally on December 1, 2009 with founders Ben Milne (CEO) and Shane Neuerburg (CTO), in Des Moines, Iowa
, United States, with 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 has approximately 15 employees as of mid-June 2011.
The main pull for Dwolla is its low transaction fees. From its onset, Dwolla charged 25 cents per transaction, less than its main rival Paypal
, which for several years has charged 30 cents, plus 1.9-2.9% of each transaction.
The name Dwolla is a conjunct of "dollar" and "web".
Dwolla began with Veridian Credit Union
for banking services, while The Members Group processes their transactions.
(ACH) transactions. , Dwolla has 11 financial institutions who have signed on, providing access to 600,000 potential customers.
In June 2011, Dwolla started Grid, a service that allows a user to not have to enter their credit card information online, while reducing credit card fraud
, and being a simple one-click option, similar to Facebook connect. Grid uses the OAuth
standard.
Dwolla is notable for its interest among Bitcoin
users, a digital currency. When Bitcoin users were made aware of the capability of Dwolla to connect Bitcoins directly to their bank accounts through Bitcoin exchanges, Dwolla use surged considerably.
To offer promotional free services, Dwolla regularly sends out money via its social integration with its experimental Twitter handle, @DwollaX. Users can money through their Twitter handles by following this profile.
Des Moines, Iowa
Des Moines is the capital and the most populous city in the US state of Iowa. It is also the county seat of Polk County. A small portion of the city extends into Warren County. It was incorporated on September 22, 1851, as Fort Des Moines which was shortened to "Des Moines" in 1857...
, United States, with 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 has approximately 15 employees as of mid-June 2011.
The main pull for Dwolla is its low transaction fees. From its onset, Dwolla charged 25 cents per transaction, less than its main rival Paypal
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
, which for several years has charged 30 cents, plus 1.9-2.9% of each transaction.
The name Dwolla is a conjunct of "dollar" and "web".
Dwolla began with Veridian Credit Union
Veridian Credit Union
Veridian Credit Union is a credit union in Iowa, with assets over US$1.4 billion and a member base of over 145,000 Veridian is the largest credit union in the state of Iowa and among the largest credit unions in the nation...
for banking services, while The Members Group processes their transactions.
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 HouseAutomated Clearing House
Automated Clearing House is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit payroll and vendor payments. ACH direct debit transfers include consumer payments...
(ACH) transactions. , Dwolla has 11 financial institutions who have signed on, providing access to 600,000 potential customers.
In June 2011, Dwolla started Grid, a service that allows a user to not have to enter their credit card information online, while reducing credit card fraud
Credit card fraud
Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. Credit card fraud is also...
, and being a simple one-click option, similar to Facebook connect. Grid uses the OAuth
OAuth
OAuth is an open standard for authorization. It allows users to share their private resources stored on one site with another site without having to hand out their credentials, typically username and password.OAuth allows users to hand out tokens instead of credentials to their data hosted by a...
standard.
Dwolla is notable for its interest among Bitcoin
Bitcoin
Bitcoin is a decentralized, peer-to-peer network over which users make transactions that are tracked and verified through this network. The word Bitcoin also refers to the digital currency implemented as the currency medium for user transactions over this network...
users, a digital currency. When Bitcoin users were made aware of the capability of Dwolla to connect Bitcoins directly to their bank accounts through Bitcoin exchanges, Dwolla use surged considerably.
To offer promotional free services, Dwolla regularly sends out money via its social integration with its experimental Twitter handle, @DwollaX. Users can money through their Twitter handles by following this profile.