The Members Group, The Veridian Group Invest in Alternative Payments to Give Financial Institutions Competitive Edge
(Des Moines, Iowa – Nov. 17, 2010) — To ensure that credit unions and community financial institutions have access to emerging payments technologies, The Members Group (TMG) and The Veridian Group have collectively invested $1 million in Dwolla, an online and mobile platform which allows an individual to pay people, businesses and merchants. The investment was made as a means to fund the growth of the platform and to have the ability to offer the product to financial institutions.
Dwolla allows cash payments to be transferred digitally between two users from more places, more quickly and at lower costs than most of the traditional services available today.
“TMG’s leadership team is continuously scanning the payments community for unique innovations to encourage our clients’ growth,” said Jeff Russell, TMG executive vice president. TMG provides financial and payments services to community banks and credit unions.
“Dwolla is a true leader in the financial services industry,” said Nick Evens, president of The Veridian Group. “Our collaborative investment with TMG in this Iowa-based company will help bring innovative financial services to credit union members.”
The investment in Dwolla creates a relationship where TMG will be the primary distribution channel for the Dwolla platform as a product offering to community-based financial institutions. In addition to its financial investment, TMG will contribute development expertise, including counsel on processing and security procedures, to ensure Dwolla’s continued success and compliance with financial industry regulations.
Russell and Evens will continue to advise Dwolla leadership as members of the Dwolla board of directors. “Dwolla’s platform is an ideal blend of technology, security and convenience, and we’re excited to be a part of its growth,” said Russell.
According to Russell, government regulations and other factors have created an environment in which financial institutions must be innovative in their efforts to provide different methods for consumers to move money through payments networks. In addition, the current economic climate has caused businesses to look for less expensive alternatives that still provide convenient transactions. Russell noted that the platform provides both a unique system for consumers to make payments and move money through Dwolla, while providing a cost effective platform for merchants and small businesses.
“Over two years, Dwolla has risen from a concept to a fully functional software platform that has processed millions in transactions,” said Ben Milne, founder and CEO of Dwolla. “Our recent capital investment from TMG and The Veridian Group creates a strategic business relationship worth more than money. The relationship validates our mission to craft a technology that empowers individuals and organizations to share and spend money while avoiding the high costs associated with many other payment systems.”
“Online and mobile payments adoption is proceeding at unprecedented rates, and we’re excited to help our clients tap into this next evolution in financial transactions,” said Russell.
Through its relationship with Dwolla, TMG is positioned to provide a revolutionary alternative payment platform that keeps deposits, transactions and market share with its financial institution clients. The platform complements several of TMG’s recent product roll outs, including mobile banking.
TMG is a wholly-owned subsidiary of the Affiliates Management Company, which is owned by Iowa credit unions and their members. As a financial and credit union service organization (CUSO), TMG is dedicated to providing innovative and flexible card processing and payment solutions to credit unions and financial institutions across North America. TMG’s core products include credit, debit, ATM and a variety of ATIRA-branded prepaid solutions, as well as online reporting, ACH and ALM services. For more information, visit www.TheMembersGroup.com.
About The Veridian Group
The Veridian Group is a wholly-owned subsidiary of Veridian Credit Union, based in Waterloo, Iowa. As a credit union service organization (CUSO), The Veridian Group is committed to providing valuable financial services to credit unions and credit union members.
Dwolla is the online and mobile cash platform that connects to your social media community to share and spend money responsibly. Using proprietary technology and business relationships with brand name financial services firms, 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. For information on the states and services using Dwolla, or to learn more about the company, please visit www.Dwolla.com.