Why Dwolla charges 25 cents for an $11 million transaction – CEO Ben Milne
As far as I can remember I was aware of Dwolla almost three years ago. I even tried to use it for my own startup Coworkify back in 2011 since I really wanted to lower the barrier of entry for new people and let as much as people experience how coworking can change typical workspace environment.
Amount of each transaction at Coworkify at that time was very small and most of those transactions were what’s called “day passes” that basically give coworkers permission to use particular coworking space for a day. The price of day passes ranges from $10 to $20. When transaction is such small, payment processing fee impacts a lot on both end users and businesses like us. That was a primary reason why I wanted to give Dwolla a shot.
Quick disclosure: Although I launched the startup in Kyoto Japan, I was technically able to apply for Dwolla since Coworkify was registered in Delaware and I had a social security number from my previous living in the United States. Huge thanks to John Sasaki at JSV Foreign Law Office for helping us register the company there. Without JSV, we wouldn’t be able to explorer various options like Dwolla.
It’s quite interesting to see how Dwolla grew since then and how it takes its stance on current virtual currency scene including Bitcoin.