Dwolla brings the financial and banking industry a little disrupting. Dwolla developed a Peer to Peer payment system with an extremely low cost exchange– no matter the amount, Dwolla only charges the recipient 25 cents per transaction. And the money sender has the option to assume this cost.
The founders of Dwolla were troubled by the fact that PayPal (which they had been using for quite a while) charges 30 cents per transaction plus 2.9% for receiving purchase payments under $3,000 and that chunk of change can add up quickly.
Leveraging social networks into the financial space Dwolla was able to set its transaction fee to a mere 25 cents per transaction.
How it works
You can register on their site by logging in with your e-mail address or a Facebook or Twitter account. Once you’ve registered and confirmed your e-mail address, add your Facebook and Twitter accounts under the “Send Money” tab. Once your accounts are connected, sending money to friends is really, really easy. Just search for their name, for example, “Alex” and every Alex you know on Twitter or Facebook will appear. From there it is easy to send money on the site and it is transferred in a Twitter DM or in a Facebook wall post. The guys call it “passing the Dwolla.”
Impact on e-invoicing and e-billing
Dwolla proofs itself to collect money using social network addresses by sending bills to Twitter and Facebook. Dwolla instantaneously numerous social channels addresses to an already diversified e-invoicing landscape. The good part is that it opens up hundreds of millions of adresses where one can send and e-invoice or e-bill to. Even better is that almost every SME (99% procent of the business population) has some kind of social profile/ social address. Now it is just a matter of searching the right address and there you go. So social billing just made e-invoicing adoption towards the SME population a whole lot easier. Putting vested interests, politics and lobbyism aside, we could now achieve massive e-invoicing adoption well before 2020. On one tiny little thing remains, Dwolla is currently only operational in the US, but with a multi-billion Euro business case, there sure is someone interested in bringing this to the EU. Right?
More information
A general introduction to Dwolla: http://www.youtube.com/watch?v=Yn9SyMzkGGI
Here is a video of using Dwolla with Facebook: http://www.youtube.com/watch?v=LOJbhMYDVO0&feature=player_embedded
And this is the original post: http://bit.ly/dYGAgH
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