Dwolla, the only online and mobile cash system that operates in and outside a user's social networks, announced the nationwide release of its service today.
Coming off the heels of its unprecedented $1 million Series A funding round with Silicon Prairie financial services firms, the Veridian Group and The Members Group (TMG), Dwolla is taking specific aim at the established payment platforms that are costing businesses and consumers billions of dollars every year. In addition to its debt-free mobile and online offerings, Dwolla's social integration with online communities, like Facebook and Twitter, make it the first viable electronic cash platform for mass adoption. Since its debut a year ago, the startup's flat quarter transfer fee has saved its users over $100,000 in debt-inducing transaction fees, or the costs associated with accessing money via traditional payment networks.
"Originally, the dollar bill was a fantastic way to move money, but as e-Commerce evolved we were forced to adopt debt-inducing credit cards and other virtual platforms as our only payment options, which -- until Dwolla's electronic cash option arrived -- created a very heavy financial burden on our economy," said Dwolla founder and CEO, Ben Milne. "Dwolla is the first cash platform -- since the dollar bill -- that will allow consumers as well as organizations to significantly reduce the amount of fees they're incurring for sending money electronically, while at the same time taking advantage of the social networks as a new medium for people to share funds."
Dwolla, which was previously only open to residents of California and Iowa over the past year, has several thousand users and has assisted in the transference of approximately $3 million at a cost of under $500, a savings of about $100,000 when compared to traditional percentage-based money moving networks, like credit cards and PayPal. Based off the Federal Reserve's quickly evolving Automated Clearing House technology, Dwolla quickly moves money from users' bank accounts at a fraction of the price typical of any other platform.
Along with its mobile applications, linking with Facebook's and Twitter's application programming interfaces (APIs), the transaction platform provides the first viable peer-to-peer platform for which businesses and individuals can spend and share money via their online networks and social communities.