10:54 AM
Connect Directly

Mobile, Online Payment Provider Dwolla Launches Nationally

Credit union backing said to give this low-cost mobile payment provider FDIC and NCUA insurance.

This week, Des Moines-based online and mobile payment service Dwolla launched nationally. Members of this service link their bank account to Dwolla and can then send small cash payments to other Dwolla members from a website, social media network or mobile device for a flat, 25-cent fee.

Two things distinguish this payment service from existing providers such as PayPal: its low transaction cost and its credit union backing.

According to the Associated Press, Dwolla founder Ben Milne created the service because he owned an audio equipment business and disliked the high fees he paid credit card companies to process purchases. The wire service says Milne has received $1 million in venture capital from the Veridian Credit Union and The Members Group, which provides transaction processing and other financial services. "The affiliation means deposits held in Dwolla accounts are insured by the FDIC and the National Credit Union Administration," the article states. "Its transactions are secured by the same technology that protects online banking systems."

As with PayPal and credit cards, the Dwolla logo appears as a payment option at checkout on a web page. Dwolla says its service can be easily integrated with programs like Facebook and Twitter, allowing friends to send each other money for the same 25-cent transaction fee. It also works with iPhone, iPad and Android mobile devices.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology
BS&T's 2014 Elite 8 executives are leading their banks to success, whether it involves leveraging the cloud, modernizing core systems, or transforming into digital enterprises.
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.