With ‘beyond card transactions’ as a key payment component in e-commerce today, and PayPal in the lead for Electronic Data Interchange (EDI), it is news worthy to identify Dwolla as a real competitor.
Both PayPal and Dwolla offer online payment methods that enable international money transfers. PayPal is the leader with its total payment growth at $41 billion in 1Q2013, however, given the incredible growth in e-commerce, worldwide, the demand for PayPal type services has invited and nurtured many competitors and several that are fast becoming real adversaries for PayPal whose market share is currently on the down.
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Even though Dwolla does not offer credit card payment options. (Yes, It is debit or bank transfer only), with a comparison of services, particularly regarding price-point, one may be able to recognize the reason for Dwolla’s popularity.
- Charges 2.9% +30 cents per transaction but nothing if money is being sent from a bank account
- Allows up to 250 recipients
- Enables daily transactions upto $10 000
- Charges 25 cents per transaction and 0 cents for transactions valued at $10 or less.
- Allows up to 2 000 recipients
- Enables daily transactions up to $5 000 for personal accounts, up to $10 000 for businesses and up to $50 000 in exceptional circumstances (all with a charge rate of 25 cents)