Dwolla: Another innovative online payment tool

Last November, He Yi introduced an online payment tool square that reads data from a credit card and communicates with the square back-end server via WiFi or 3G network and eventually pays. Today, He Yi introduces another online payment tool, Dwolla, a new online payment system that enables online payment transactions without credit cards.

Dwolla was formally launched in December 10, trading 50,000 dollars a week, and Dwolla a daily turnover of $1 million by July 11. Dwolla is located in the central U.S. capital of Iowa Des Moines, currently only 12 employees. In the past 2011, the number of Dwolla users reached 80,000, the growth rate reached 3,200%. It now processes 30 million to 50 million dollars of payment transactions each month through online and mobile platforms. Dwolla has now completed two rounds of financing, a round of financing of 1.3 million U.S. dollars, b round of financing 5 million dollars.

Dwolla's idea was born out of the company's founder, Ben MUHLN (Ben Milne). Ben MUHLN (Ben Milne) said: "I once owned a loudspeaker manufacturing company, all products are sold directly on the website." Transaction fees have bothered me and I hope to get rid of it. As a merchant, we have to pay a certain percentage of the money we pay for each credit card. Our company pays 55,000 dollars a year to credit card companies. I thought it was like stealing-I got the money, but someone took a part out of my pocket.

So I came up with the question: How can I pay online without paying credit card companies? We found a bank 3 years ago and they said they could try.

So for 3 years we've been working on this project. Last December we finally came up with a legal way. ”

The biggest difference between Dwolla and PayPal is that--paypal is based on a network system such as Visa and MasterCard, and Dwolla has its own system.

As long as the Dwolla account, users can use Dwolla transfer to anyone, of course, the payee also need to register an account to collect. One of Dwolla's unique practices is that it takes social networking as a list of contacts, and users log in to Facebook and enter their friends ' names to transfer them.

Ben Milne, founder of Dwolla, said, "We think that in the long run, the transfer will become as easy as it is to find a friend on Facebook and become more humane." When a user receives a money transfer from a friend, they will see their name and Avatar, a completely different interactive experience that will help us attract and transform more customers. ”

Through Dwolla, users can pay directly with their bank accounts. Users can pay as much as they want, and the payee of each transaction pays only 0.25 dollars, which is especially helpful for larger deals. Now people are starting to use the Dwolla platform to pay their monthly rent. If I were the landlord who was going to collect the rent, 1800 dollars would be lost by a credit card, but Dwolla would only charge US $0.25. Wolla average transaction amount is about 500 U.S. dollars, and PayPal charge 2.9% transaction fee, the average transaction amount is only 30 U.S. dollars.

At present, Dwolla's main business comes from C2B (consumer to company) and consumer (companies to consumers), only 11% of the business is peer-to-peer (individual to individual).

Because Dwolla bypassed the credit card company, it had less time to delay and liquidate, so it would be quicker to pay through Dwolla.

Like most payment tools, Dwolla is still in its infancy in the area of mobile payments. Users only in support of Dwolla merchants can complete mobile payment, this is similar to Foursquare and other check-in applications, but the user does is to pay instead of check-in. There are about 7,500 businesses working with Dwolla.

Since the transaction fee charged by Dwolla is relatively low, the use of the traditional payment method is relatively dwolla, the user can save 2% to 8% of the transaction costs.

He Yi think this is really good baby, than that what save more money, innovation endless Ah!