This has to be too good to be true, and if not, I am sure the major credit card institutions are sharpening their swords against this startup.There's a tiny 12-person startup churning out of Des Moines, Iowa.
Dwolla was founded by 28-year-old Ben Milne; it's an innovative online payment system that sidesteps credit cards completely.
Milne has no finance background, yet his little operation is moving between $30 and $50 million per month; it's on track to move more than $350 million in the next year.
Unlike PayPal, Dwolla doesn't take a percentage of the transaction. It only asks for $0.25 whether it's moving $1 or $1,000.
Where we've seen a ton of transactions right now is with people paying monthly rent. If I'm a landlord and I want to collect it, taking a credit card payment means missing out on 3% of an $1800 charge. Dwolla is $0.25 cents.
The average Dwolla transaction is right around $500. PayPal takes 2.9% plus $.30 a transaction.
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