Release of New Feature Gives Dwolla Users ‘Instant’ Access to Cash
(Des Moines, Iowa – Dec. 15, 2011) – Dwolla, the online, location-based, social and mobile payment platform released a new feature today provided through a partnership with TMG Financial Services (TMGFS), a sister company of Dwolla partner and investor The Members Group (TMG). Called Instant, the opt-in feature gives users access to cash instantly, avoiding the two- to three-day waiting period for transfer of funds.
“Instant puts the convenience of an ATM-like feature inside the pocket of our users,” said Ben Milne, Dwolla founder.
Prior to the release of Instant, users could only initiate an immediate transfer of funds if they had money in their Dwolla account. If a user wants to access money from a different source, like a linked credit union or bank checking account, the transfer can take up to three days.
By opting-in to Instant, users have a second option for transferring funds immediately. Users without enough funds in their Dwolla accounts or those who want to by-pass the two- to three-day waiting period to transfer funds from a linked account will choose Instant to pay for their purchase or transfer immediately.
Instant is an opt-in feature available to all Dwolla users for $3 per month. When a user chooses Instant, Dwolla will extend a line of credit up to $500 to the user. No additional fees are charged for the first 30 days following the Instant transfer. If the Instant balance is not paid back in 30 days, the user will pay a $5 fee per month for every month he carries an Instant balance. Dwolla also offers Instant users the option to initiate repayment from a linked account immediately following the Instant transfer.
TMGFS has worked closely with Dwolla to provide the structure necessary to extend this line of credit. “This is an exciting evolution in the payments space,” said Jeff Russell, president and CEO of TMG Financial Services and senior advisor for TMG. “The market is clearly moving toward embracing mobile payment strategies, and this is a significant first step.”
“We continue to partner with Dwolla to build the kind of robust payment network consumers want and small businesses are clamoring for,” said Brian Day, Dwolla product leader for TMG.
“We understand that the way consumers want to make purchases, pay their bills and even spot each other money is changing,” added Russell. “Being able to play a leading role in the development of this next-generation payments network is exciting for our entire team.”
“Consumers who have a frequent need for cash can pay large sums each month to access out-of-network ATMs. Add in the convenience of mobility and social network integration, and it’s easy to see why Dwolla and this new Instant feature will bring tremendous value to users,” added Day.
About Dwolla
Dwolla is the nation’s only online, mobile, social and location-based cash platform that connects to your social community and location to share and spend money. Using proprietary technology and business partnerships with The Veridian Group and The Members Group, Dwolla allows consumers and organizations to send and receive money from their bank accounts for only 25 cents per transaction, no matter the transfer amount. Unlike traditional payment platforms, Dwolla takes the industry in a new direction by allowing people for the first time to share money with their social networking contacts. Founded in 2009, Dwolla is based in the heart of Silicon Prairie, Des Moines, Iowa. For information about Dwolla and its unique cash platform, please visit www.Dwolla.com.
About TMG Financial Services
TMG Financial Services is a credit card agent-issuing company dedicated to providing solutions that are collaborative and focuses on providing value for both partners and cardholders. TMG Financial Services is a sister company of The Members Group, a leading provider of credit, debit, ATM and prepaid processing solutions. For more information, visit www.TMGFinancialServices.com.
# # #
