Fletcher School
Author Archives: Ben
Dwolla
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. Continue reading
LevelUp
LevelUp offers an attractive product for both merchants and consumers. Consumers can download the app entirely free and will receive discounts and meal credits automatically. Merchants benefit by being able to receive payments without paying any interchange fees. Merchants don’t pay any monthly fees and are only charged if LevelUp helps a business acquire or retain a customer. LevelUp also takes a much smaller cut of the initial purchase relative to Groupon. Additionally, the fact that LevelUp is concerned about customer loyalty is seen as a huge boon for merchants – allegedly, 65% of customers using a LevelUp discount return for at least a second visit, compared to fewer than 5% for Groupon.
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ABCs of Payment Innovation: Assets, Backbones and Chips
Tweet How do payment companies innovate? Should incumbents and oligopolists be concerned about upstarts? Do online payment companies work with or against existing banks and network operators? Should bank industry alliances scare web companies, telecoms and payment networks? The answers … Continue reading
Forbes blogger Faw on CEME Smackdown
Tweet Thanks to Larissa Faw of Forbes for her coverage of our little payments experiment. Faw covers Milliennial women workplace trends, with a focus on entrepreneurs, finance and innovation. We at CEME are grateful for the interest in our experiential … Continue reading
Posted in Smackdown, Teaching
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Congratulations to Ravi and Brooke
Tweet Ravi’s inexplicable good fortune won him the $100 prize from MasterCard, and Brooke took the dinner prize for best blog entry. Congratulations from Kim, Ben, and the Center for Emerging Market Enterprises! Thank you to all who participated, and … Continue reading
Posted in Smackdown
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Don’t know how to live without a card? Just call Mom.
Tweet by Min Lin When I first discovered I would have to go cardless for a week, I thought, “I have to call mom, she’ll know what to do.” Except for some change in my wallet, I never carry cash. My … Continue reading
Posted in Smackdown
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School’s out!!
Tweet The April 6, 10:00am deadline is past! Welcome back to your integrated wallets. Blogging continues…. stay tuned for details on the blogging deadline, prize announcements and more. Thank you very much for participating in our Smackdown!
Posted in Smackdown
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Tolls got me.
Tweet I picked my wife up from the airport, and I’m so used to zipping through the electronic tolls, I did it without even thinking. It was premeditated. I decided I would just ‘fess up here and say, –Yes it’s … Continue reading
Posted in Smackdown
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Seigniorage ain’t manna.
Tweet WaPo editorialized, on the dollar-bill-versus-dollar-coin debate, that “objectively, facts favor the coin.” This is a surprisingly narrow view of the issue of what form our money ought to take. There are better questions to ask about money than whether … Continue reading
Posted in Dialogue
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Game on.
Tweet The smackdown begins at 4:00pm EDT, today. It lasts until 10:00am on April 6. Enjoy the experience, keep track of what happens to you, and share your thoughts (and photos) with us. Check out the rules page and blogging … Continue reading
Posted in Smackdown
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