Cash transfer startup Dwolla has announced that they will be expanding to their second state on March 1, 2010 when they open up their service to consumers and merchants in California. Des Moines-based Dwolla launched in their home state of Iowa on December 1, 2009.
Dwolla, which describes itself as a “payment network,” differentiates itself from PayPal and other systems for exchanging money by charging only a $0.25 per transaction fee rather than the standard fee which can be up to 5%.
Dwolla founder Ben Milne created a poll on their website to prioritize future expansion of their service in states with the most interest. If you’re interested in bringing Dwolla to your state, cast your vote at Dwolla.org. Additionally, consumers and merchants in all states can request an invitation to Dwolla at their main site; the location of these invitation requests are also a metric that Ben and his team uses to determine their expansion.
Additionally, Ben was the guest of Andy Brudtkuhl and I on the PrairieCast podcast this morning where he discussed the California expansion and more. That podcast episode will be available in the next few days.