Dwolla is a company that provides electronic payment services and mobile payments.
The company was founded in 2008 with services based only in Iowa and has two employees. After Dwolla increased $ 1.31 million in funding, she launched in the United States on December 1, 2010, with founders Ben Milne (CEO) and Shane Neuerburg (CTO), in Des Moines, Iowa, and initially with several small banks and retailers. In June 2011, Dwolla grew to 15 employees and 20,000 users and processed $ 1 million a week for the first time.
Dwolla started with Veridian Credit Union for banking services, while the Iowa Credit Union League Group was processing its transactions.
Dwolla provides a white label service that consists of APIs that use ACH and white label services extended from payouts to include immediate bank authorization to debit bank accounts.
On May 25, 2011, Dwolla released the FiSync integration to enable immediate transactions instead of a typical 2-3 day ACH transaction. In June 2011, Dwolla had 11 financial institutions that provided access to 600,000 potential customers. Dwolla quietly interrupted FiSync on January 31, 2017.
Since April 2013, Iowa Revenue Department allows businesses that pay taxes on cigarette stamps to now use Dwolla as a payment method. Iowa Governor Terry Branstad announced on January 6, 2014 that the state will expand the partnership to allow Iowa customers of the Department of Transport to pay fuel tax and the cost of online vehicle registration services. In February 2015, the US Treasury Department of the US Department of Finance added Dwoll to a system that allows US federal agencies to issue and receive electronic payments.
On February 27, 2016, the Consumer Protection Office (CFPB) issued its first data security enforcement action against Dwolla, Inc. Relying on its UDAAP-related powers, CFPB argued that Dwolla was unable to maintain adequate data security practices despite representation. on the company’s website and in communicating with consumers that the company has implemented procedures that exceed industry standards. Among other things, Dwolla has agreed to settle and must stop making any distorted information about its data security practices.