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.
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.
PayPal
- 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
Dwolla
- 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)
