Enabling Technologies

Dwolla Direct Lets you Transfer Cash without Registration

MEDICI

Recently, US based e-commerce company – Dwolla – announced the launch of another payments innovation, Dwolla Direct. This solution enables organizations as well as individuals to transfer cash over the Dwolla network without having to register a full account.

“The impetus for Dwolla Direct is to help small businesses replace checks,” Dwolla spokesperson Jordan Lampe told cutimes. “We will use the existing check rails. In two to three days, the recipient will get the cash,” he added.

  • Most consumers do not really want to sign up for yet another account, and that reluctance has hindered broader adoption of Dwolla, according to the company.
  • With Dwolla Direct, a new user supplies an email address, a password and he verifies his bank or credit union.
  • There is no need to provide a routing number or an account number.
  • The user indicates the name of his or her financial institution, then provides account login credentials.
  • According to Dwolla the process, start to payment, can occur as quickly as 15 seconds.
  • Once set up, a returning user can initiate a new payment just by entering the username and password. Dwolla will remember the account information.
  • Dwolla insisted that existing users can continue to use the present Dwolla system.
  • The service is all set to go live for its users on 25th June,2014.

“Our intent is to remove the excuses some merchants have for holding onto paper checks,” Lampe told cutimes. “We are trying to make ACH compatible with the 21st century. Paper checks may go away but the payment network will continue to work.”

Originally founded in June, 2008, Dwolla was launched in the US on December 1, 2009, by Ben Milne (CEO) and Shane Neuerburg (CTO) as founders, in Des Moines, Iowa.

Blending the words “dollar” and “web”, Dwolla aims to “allow anyone [or anything] connected to the internet to move money quickly, safely & at the lowest cost possible”. It allows any entity to request and exchange money through its self-built network that securely connects to customer’s bank account and allows to move money.

Dwolla, Inc. is an agent of Veridian Credit Union (VCU). All funds in the Dwolla network are held in a pooled account at VCU. Dwolla, Inc. is the operator of a software platform which communicates user instructions to VCU for fund transfers.

MEDICI Team

MEDICI

MEDICI Team is a group of content writers, bloggers, journalists, researchers, and editors from the MEDICI who collaborate to create FinTech insights.

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