Transferring money from Dwolla account to Dwolla account has always been instantaneous, but now the Des Moines-based financial startup is making the process more seamless for bank transfers and small businesses.
The latest iteration of Dwolla’s Next Day Transfers feature allows businesses, government agencies and nonprofits to move money over Dwolla’s network more quickly than they had before. Instead of the typical three to four day wait period when moving funds from a financial institution to Dwolla, the money will now be moved in just one business day.
The new policy comes from findings Dwolla released Thursday about the cost of writing checks for small and medium-sized business. According to Dwolla’s findings, paper checks cost small businesses roughly $13 billion each year in labor, supplies, fees and other costs.
“Small businesses are writing a $13 billion check each year for a process that does nothing but cause headaches and hurt their bottom line,” Anne Driscoll, vice president of marketing at Dwolla, said in a press release. “Issuing paper checks is an old and manual process that clouds a business’s ability to make real-time decisions and get paid faster, but existing platforms have been too expensive and complicated to set up and integrate for the small or non-tech businesses.”
This new feature comes months after Dwolla announced a number of integrations with larger tech companies. In February, the company announced Amazon.com customers would be able to pay for purchases using Dwolla, through a ZincSave plug-in. Then in late March, Dwolla announced an e-invoicing partnership with GoDaddy.
To view a larger version of Dwolla’s infographic, visit the company’s blog.