Dwolla, Next Big Deposit Method?
Dwolla, one of the newest online transaction companies launches with an incredible idea and bold plans. The creator of the company says he wants to ‘kill credit card companies’.
What is so great about Dwolla?
Dwolla simplifies the exchange process and cuts out the typical middlemen which include credit (debit) card companies, ewallets such as PayPal, and ACH services.
As a result, they control the transaction process which allows for the main attraction, incredibly low transaction fees. They only take $0.25 (a quarter) from every transaction no matter the amount. The fee is charged to the person that receives the payment.
This is potentially huge for the online gaming industry. Massive amounts of money are paid to transaction companies by online poker rooms, casinos and sportsbooks. The fact that it is creating its own system, makes the transactions instant as they do not have to go through an intermediary first.
How does it work?
The system allows two parties that are connected through the Dwolla network to make direct transactions. Again, the important thing to remember is that there is no middle man so this speeds up the transaction process. It allows for quicker authorization and transfer of funds.
They have the stated goal of making the transfer process as easy as communicating with people on facebook. If you send money to someone that does not have a Dwolla account a message is sent to them telling them they have money waiting for them, all they have to do is sign up for Dwolla to claim it.
To make the sign up process easier, they will connect it to social networks such as facebook.
They already have several banks that connect with Dwolla, so it becomes another option for users to send money.
Do any gaming companies accept Dwolla?
No, Dwolla is still a relatively new company and operating on a regional scale. However, when they do grow into larger markets, they have full control over who can use their service, it will be a company decision. However, if Dwolla does allow for gaming operators to connect with players, it would be a huge progression for the transaction process.