Dwolla believes that rather than rely on existing credit card networks – which are known to take a 2-5% a transaction – consumers should instead use internet as a means to transfer money quickly, cheaply and more securely than cash…. Dwolla’s main value added is a way to transfer money for much cheaper than credit cards or payment services built on top of credit cards. For merchants, this is a clear advantage. Customers, on the other hand, do not always realize the impact of interchange fees. However, Dwolla has been adding a slew of “add-ons” to their service to appeal to a broader audience:
MassPay – allows payment of up to 2000 people at once; geared towards small to large businesses as a more efficient means of payroll.
Spots – an add-on application that allows users to see which merchants nearby accept Dwolla.
Proxi – An add-on that allows users to see other nearby Dwolla users in real-time.
Grid – Allows users to better protect their credit card information, reducing the risk of fraud.
FiSync – a real-time money transfer system designed to replace Automated Clearing House (ACH); allows transfers to occur within 24 hours, compared to 2-5 days for ACH.
Instant – An opt-in feature that allows a user to borrow up to $500 in a given month.More... →