Dwolla

{{Infobox website

| name = Dwolla, Inc

| logo = dwolla-logo-full-color.svg

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| location = Des Moines, Iowa, United States

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| founder = {{Unbulleted list|Ben Milne (CEO)|Shane Neuerburg (CTO)}}

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| url = {{URL|www.dwolla.com}}

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| registration = Required (can be done through API){{cite web|url=https://docsv2.dwolla.com/#create-a-customer|title=API - Create a Customer}}

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| company_type = Private

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| num_employees = 75 (2015){{cite web | last=Roberts | first=Daniel | title=Dwolla, a payments startup, scores its first big-bank partner | website=Fortune | date=April 8, 2015 | url=http://fortune.com/2015/04/08/dwolla-bbva-compass-real-time-transfers/ | access-date=December 3, 2016}}

| subsid =

| website_type = Online payment system

| num_users = 500,000 (Fall 2013)

| launch_date = December 1, 2010{{cite web|url=http://blog.dwolla.com/cat-is-out-of-the-bag-we-are-now-national/|title=Dwolla blog - Cat is out of the bag. We are now national.}}

| current_status = Active

}}

Dwolla {{IPAc-en|d|ə|ˈ|w|ɑː|l|ə}} is a United States-only{{cite web|title=Businesses|url=https://www.dwolla.com/businesses|website=Dwolla (company site)|access-date=31 October 2015|quote=Today, Dwolla is only available in the U.S., but we’re always exploring ways we can expand to help every small business move money quickly and safely.|archive-url=https://web.archive.org/web/20150907041357/https://www.dwolla.com/businesses|archive-date=7 September 2015|url-status=dead}} fintech company that provides businesses with a connection to the ACH Network or RTP Network (Clearing House’s privately-owned real-time payments network).

History

The company was founded in 2008 in Iowa by Ben Milne and Shane Neuerburg.{{cite web | url=http://www.dwolla.org/blog/weve-officially-passed-1m-a-week-in-transactions/ | title=We've officially passed $1M a week in transactions | work=Dwolla blog | author=Milne, Ben | date=June 17, 2011 | access-date=January 22, 2012}} After raising $1.31 million in funding,{{cite web|first=Alexia|last=Tsotsis|title=Dwolla's FiSync Lets You Instantly Access Cash, Eliminates ACH Wait Times For Banks|date=March 25, 2011|work=TechCrunch|url=https://techcrunch.com/2011/03/25/dwollas-fisync-lets-you-instantly-access-cash-eliminates-ach-wait-times-for-banks/|access-date=January 22, 2012}} Dwolla launched in the United States in December 2010 to a few small banks and retailers.{{cite web | url=http://siliconprairienews.com/2010/12/dwolla-meetup-packs-a-full-house-at-mars-cafe/ | title=Dwolla Meetup packs a full house at Mars Cafe |work=Silicon Prairie News |date=December 2, 2010 | access-date=November 13, 2015}}

By June 2011, Dwolla had grown to 15 employees, 20,000 users, and $1 million in weekly processing volume.{{cite web|first=Tsotsis|last=Alexia|title=Payments Service Dwolla Hits $1M A Week In Transactions|date=June 16, 2011|work=TechCrunch|url=https://techcrunch.com/2011/06/16/payments-service-dwolla-hits-1m-a-week-in-transactions/|access-date=January 22, 2012}}

Dwolla has about 650 clients and about 30 million users. It processed about $45 billion in payments in 2022, up from $30 billion in 2021 and $20 billion in 2019. About 80% of its clients are small businesses.

Dwolla provides a white label service consisting of APIs to use the ACH system{{cite web|url=http://bankinnovation.net/2015/09/dwolla-unveils-white-label-offering/|title=Dwolla Unveils White Label Offering - Bank Innovation|date=2 September 2015 |access-date=28 October 2016}} and white label services expanded from payouts to include instant bank authorization for debiting bank accounts{{cite web|title=Bank account verification and transfers in just a few lines of code|url=http://blog.dwolla.com/bank-account-verification-and-transfers-in-just-a-few-lines-of-code/|url-status=dead|archive-url=https://web.archive.org/web/20160503144901/http://blog.dwolla.com/bank-account-verification-and-transfers-in-just-a-few-lines-of-code/|archive-date=3 May 2016|access-date=3 December 2016}}

=FiSync=

On May 25, 2011, Dwolla released its FiSync integration, which aims to allow instantaneous transactions instead of the typical 2–3 day of the ACH Network transactions. {{As of|2011|June}}, Dwolla had 11 financial institutions signed on, providing access to 600,000 potential customers.{{cite news | url=http://www.siliconprairienews.com/2009/12/dwolla-launches-in-iowa | title=Dwolla launches in Iowa | work=Silicon Prairie News | date=December 1, 2009 | access-date=January 22, 2012 | author=Wood, Geoff}} Dwolla quietly discontinued FiSync on January 31, 2017.{{Cite web|last=Milne|first=Ben|date=2017-02-05|title=Saying Goodbye To Old Products|url=https://benmilne.com/2017/02/05/saying-goodbye-to-old-products/|access-date=2020-12-21|website=Ben Milne|language=en-US}}

=Government payments=

As of April 2013, the Iowa Department of Revenue allows businesses that pay cigarette stamp taxes to use Dwolla as a method of payment.{{cite web|title=Iowa Government: Dwolla and Electronic Payments In, Paper Checks Out|work=www.creditcardprocessingspace.com|date=5 April 2013 |url=http://www.creditcardprocessingspace.com/iowa-government-accepting-electronic-payments-dwolla/|access-date=April 17, 2013}} Iowa Governor Terry Branstad announced on January 6, 2014 that the state will expand the partnership to allow customers of Iowa Department of Transportation to pay fuel tax and vehicle registration costs online using the service.{{cite web|url=http://www.desmoinesregister.com/article/20140106/BUSINESS04/301060078/State-Iowa-expands-partnership-Dwolla?gcheck=1&nclick_check=1|title=Des Moines Register|website=The Des Moines Register |access-date=28 October 2016}}

In February 2015, the US Treasury Department's Bureau of Fiscal Service added Dwolla to the system which allows US Federal agencies to issue and receive electronic payments.{{cite news|last1=Boyd|first1=Aaron|title=Pay.gov adds 'digital wallet' payment choice|url=http://www.federaltimes.com/story/government/it/management/2015/02/20/pay-gov-paypal-dwolla/23733249/|access-date=27 October 2015|work=Federal Times|publisher=TEGNA|date=24 February 2015}}

=Inadequate security practices=

On February 27, 2016, the Consumer Financial Protection Bureau (CFPB) released its first data security-related enforcement action[http://files.consumerfinance.gov/f/201603_cfpb_consent-order-dwolla-inc.pdf "Administrative Proceeding"]. U.S. Consumer Financial Protection Bureau. against Dwolla, Inc. Relying on its UDAAP-related authority, the CFPB alleged that Dwolla failed to maintain adequate data security practices despite representations made on the company website and in communications with consumers that the company has implemented practices that exceed industry standards. Among other requirements, Dwolla has agreed to settle and must cease making any misrepresentations about its data security practices.

= The Dwolla Platform =

In 2016, Dwolla became a B2B SaaS company, selling its payment software directly to businesses so they can offer their customers bank transfers as a payment option in addition to credit cards. Since 2016, the Dwolla Platform has added new features along with real-time payments, push-to-debit payments and Same Day ACH credits or debits.