Update 04/2019: Dwolla has reached out to TNW to let us know that they are still getting a lot of visitors to this page looking for this particular service, which they unfortunately no longer offer. Just to let you know.
Dwolla has made a name for itself in the payments business by doing the exact opposite of everyone else. While PayPal charges a transaction fee and then applies a debit card fee on top of that, Dwolla has avoided the card altogether and any transaction under $ 10 is completely free.
So how do you make this even more appealing to your users? According to CEO Ben Milne (see our interview with Milne), you give them instant access to cash, whenever they have an internet connection. With this in mind, Dwolla Instant was born.
Instant is a new feature from Dwolla that gives you instant access to cash. So instead of having to wait for the funds to arrive in your account, Dwolla will charge you up to $ 500 instantly, and all it costs are $ 3 per month.
“We don’t want to charge you the fees. Please just send the film back. “
To activate Instant, you must log into your Dwolla account through the web page. I’m told, however, that the feature will be available in Android and iOS apps soon. Once you have deposited or sent money with Instant, you will see that you now have an Instant Balance section, managed separately from your normal Dwolla funds.
You have two options with Instant: pay it off immediately through a linked bank account or pay it off later. As long as you make the refund before the end of your statement date, there are no late fees. Miss the date and it will cost you $ 5. Please just flip the film over.
While the feature is obviously more powerful for those who have merchants accepting Dwolla around them, it is still handy even if you don’t. Suppose you are on the go and need quick access to cash, but you don’t have the funds in your account yet. Instant can act as a “payday loan,” giving you the money you need for a short period of time, until you can afford to pay it off. This is especially handy, for example, if you need to split a check with a friend but have no money on hand in your Dwolla account.
Dwolla is not without a company when it comes to m-payments, but the card-avoidance and middleman-vendor approach works well for the Iowa-based company. For comparison, Clover Pay (another rrecently published addition to space) has much of the same function as Dwolla, but it has absolutely nothing to do with the Instant function. If you run out of funds in your Clover account, you’re just out of luck until you add to it, which can take days.
Dwolla once again takes an idea, follows it, and completely changes the way it has happened in the past. It’s a powerful move on the part of the company, and Milne expects many people to take advantage of it soon. As such, you may see a queue for a short time, but Instant is now available so you can activate it and have a better option for the immediate cash.