Dwolla

dwolla

Dwolla is a United States-only e-commerce company that provides an online payment system and mobile payments network by the same name. The company was founded in 2008 with services based only in Iowa. After raising $1.31 million in funding, Dwolla launched nationally in 2009 with founders Ben Milne (CEO) and Shane Neuerburg (CTO), in Des Moines, Iowa, United States, with a few small banks and retailers. Transactions using Dwolla surpassed $1 million a week and its Iowa user-base was overtaken in 2011, with 20,000 users. The company began with two employees and has approximately 15 employees as of June 2011.

The main pull for Dwolla is its low transaction fees. From its onset, Dwolla charged 25 cents per transaction, less than its main rival Paypal, which for several years has charged 30 cents, plus 1.9-2.9% of each transaction. The name Dwolla is a conjunct of ‘dollar’ and ‘web.’ Dwolla is notable for its interest among users of Bitcoin, a digital currency. Some Bitcoin exchanges allow users to buy Bitcoins with dollars transferred to the exchange via Dwolla, and allow users to sell Bitcoins and have the proceeds transferred back to them using Dwolla. Although Dwolla representatives have said that they saw growth due to Bitcoin users, they do not offer any official endorsement of Bitcoins.

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