Digital payments start-up Dwolla is stepping up its attack on the card networks with the beta launch of a credit product for online purchases.
Through a multi-year partnership with Alliance Data Systems, Dwolla Credit provides approved users with the ability to instantly access and spend advanced funds at certain online retailers.
As with its cash-based payment network, customers pay a flat fee of 25 cents, or nothing if the transaction is under $10.
Dwolla says that it will work with members during the initial beta rollout to tweak the service and plans to make it generally available early next year.
Ben Milne, CEO, Dwolla, says: "Credit is not new, but providing it on a real-time network that replaces interchange fees and positions credit to evolve is, and that's what Dwolla Credit does."