Based in Des Moines, Iowa, Dwolla is a payments company that has announced a new credit product, which will allow approved customers to access credit and spend it online through a network of merchants.
“Credit is not new, but providing it on a real-time network that replaces interchange fees and positions credit to evolve is, and that’s what Dwolla Credit does,” stated Dwolla chief executive officer and founder Ben Milne. “Dwolla Credit places millions of dollars in immediate buying power right at the fingertips of a network at a transaction cost that’s next to nothing and in a way that’s as simple as logging into your email.”
The traditional interchange charges are replaced in Dwolla Credit purchases with a flat 25 cent fee. Transactions under $10 are free.
Some of the online merchants that Dwolla is working with on this initiative includes WunWun, Karma, and Hugh & Crye. Dwolla Credit’s partners are Alliance Data Retail Services and Comenity Capital Bank. Dwolla Credit is in “beta” stage and is expected to be fully rolled out in 2014.