Seamless Distribution has concluded an agreement with US payment company Dwolla. The agreement will allow money transfers between private individuals, also known as peer-to-peer transfers, across the US via digital payment solution SEQR, supported by Dwolla. The companies expect to launch the peer-to-peer service in the first quarter of 2016.
Dwolla’s payment platform provides SEQR with the opportunity for a rapid rollout of peer-to-peer payments. By utilizing Dwolla’s infrastructure, SEQR is able to launch peer-to-peer transfers in the US ahead of having its own entire money transmitter licenses approved.
“Money transfer between private individuals is a very popular service in the US. Under the agreement with Dwolla, we can quickly offer SEQR’s US customers a peer-to-peer service which is something our customers in Europe already make great use of. Peer-to-peer is growing rapidly in the US,” Peter Fredell, CEO of Seamless, said in the press release.
He added, “In parallel with the launch in partnership with Dwolla, we are continuing to secure money transmitter licenses in the US within the scope of our own solution, which will ultimately prove more profitable.”
About SEQR by Seamless:
SEQR (se·cure) is Europe’s most-used mobile payment solution in stores and online. SEQR enables anybody with a smartphone to pay in stores, at restaurants, parking lots and online, transfer money at no charge, connect loyalty programs, store receipts digitally and receive offers and promotions directly through one mobile app. Through the SEQR app, the user simply scans or taps a QR-code/NFC at check-out and approves the purchase by entering a PIN code. Fast, smooth and safe, SEQR’s payment solution enables merchants to lower interchange fees significantly compared to those charged by traditional card companies. SEQR’s unique transaction platform has been developed by Seamless, one of the world’s largest suppliers of payment systems for mobile phones.
Founded in 2001 and active in 35 countries, Seamless handles more than 3.7 billion transactions annually through 575,000 active sales outlets. 6,200 merchants have chosen SEQR including the largest grocery chains, fast food chains and national retailer chains in the markets where SEQR is established. Currently, SEQR is established in Sweden, Finland, Romania, Belgium, Portugal, Netherlands, Germany, Spain, France, Italy, the UK and the US. In 2013, SEQR won the “Mobile Money Deployment in Europe” award at Mobile Money and Digital Payments Summit in Dubai. Seamless is traded on NASDAQ OMX Stockholm under the SEAM ticker.
Originally founded in June 2008, Dwolla was launched in the US on December 1, 2009, by Ben Milne and Shane Neuerburg as founders in Des Moines, Iowa. It is an independent payment network that allows companies and individuals to pay each other directly. This avoids the high fees of money transfers, bank payments and credit cards.
Initially, the company used to charge a flat 25-cent fee for all transactions, and there was no fee for any transaction under $10. But now the company has changed its pricing strategy. As of now, the company’s $0.25-per-transaction fee has been removed, for everyone, for every type of transaction.