The Dwolla payment system has challenged classic interbank transfers by allowing users to pay no interest to intermediaries. It’s one of the safest ways to receive your income from Amazon online business. Let’s see how does US’ Dwolla works and understand the registration process.
What is Dwolla?
Dwolla is a service of accepting payments on the online store platforms that allows online stores and service providers to accept payments from customers in any electronic currency, via SMS-messages, via money/bank transfers, via payment terminals
Payments under $10 are free, and the system charges only 25 cents for larger transfers, regardless of the amount. In this case, the service is free for the sender.
All transactions are conducted directly from the client’s bank account and completely exclude the use of credit or debit cards, so you don’t have to pay any commission.
Dwolla allows you to send money to anyone without having to know the recipient’s bank account number: you can send the transfer by email, phone number or via social networks like Facebook, Twitter, and LinkedIn. When the recipient receives a message about the receipt of money, he or she will click on the link and register in the system.
But personal transfers account for only 11% of the total. Most of it is online payments, transfers from businesses to individuals and between organizations. Some companies use Dwolla to pay wages. The average transaction amount is about $500.
Dwolla was created in 2008, and today works with major U.S. banks like JP MorganChase, Citibank, Wells Fargo, Capital One.
How does Dwolla Payment system works?
The Dwolla system simplifies the movement of finances on a daily basis with low transaction costs, simple automation and near-perfect reliability. Dwolla says it strives to create an intuitive service for making and receiving payments, managing funds, processing transfers and controlling cash flow.
In a market crowded with mobile payment services and digital money schemes, Dwolla’s service is unique. Almost all electronic payment systems, including PayPal, are built on four financial networks that handle cashless transactions. Dwolla has built its own network, known as FiSync, which connects directly to banks, reducing costs and avoiding additional and hidden fees, opening the door for users to pay no interest to intermediaries.
Dwolla’s ACH payment API integrates with any platform or application to facilitate bulk payments and bank transfers. The dashboard allows real-time tracking of customer payment activity and makes it easy to control the flow of payments. The service can be used in almost any scenario: at the cash register, from a phone or desktop, interpersonal transfers, between businesses, between banks.
Dwolla or Amazon Pay?
Amazon Pay is another, more traditional, payment system that helps receive your Amazon money directly.
In evaluating the two solutions, reviewers concluded that Amazon Pay is easier to use and configure. However, Dwolla is easier to administer. Besides, reviewers generally prefer doing business with Dwolla.
However, according to reviewers, Amazon Pay meets their business needs better than Dwolla.
When comparing the quality of current product support, reviewers believe Amazon Pay is the preferred option.
Meanwhile, developers describe Dwolla as a simple and powerful bank transfer API with no transaction fees.
Amazon Pay, on the other hand, is described as allowing you to use payment methods already associated with your Amazon account. This makes it easier for millions of customers around the world to sign up and check out using information already stored in their Amazon account.
Dwolla and Amazon Pay can be categorized primarily as “Payment Services” tools.
Some of the features offered by Dwolla are as follows:
- Supported integration.
- Security as a culture.
- A service you can rely on.
Amazon Pay, on the other hand, provides the following key features:
- Identification.
- Automatic payments.
- Built-in checkout.
What are the alternatives to Amazon Pay and Dwolla?
PayPal
PayPal is an online payment and money transfer service that allows you to send money via email, phone, text message or Skype. They offer products to both individuals and businesses, including online merchants, auction sites and corporate users. PayPal easily connects to bank accounts and credit cards. PayPal Mobile is one of PayPal’s newest products. It allows you to send payments via text message or PayPal’s mobile browser.
Paytm
It’s a digital payments platform that allows you to transfer cash into an integrated wallet through online banking, debit and credit cards, or even by depositing cash through select banks and partners.
Stripe
Stripe makes it easy for developers to accept credit cards online.
Braintree
Braintree replaces traditional payment gateways and merchant accounts. From one-touch payments to mobile SDKs and international sales, we provide everything you need to start accepting payments today.
Adyen
The payment technology company provides a single global platform to accept payments anywhere in the world. Businesses can process payments online, on mobile devices and in-store (POS) using more than 250 payment methods and 187 currencies.
Dwolla payment system benefits
- Customizable payment options
If you want to collect, pay or facilitate transactions between users on your platform, implement a solution that fits your business needs.
- Modern, reliable API for payments
Make sure your financial systems work for you. When you choose Dwolla as your payment solution provider, Dwolla payment API removes any barriers and gives your business the flexibility to innovate and accelerate time-to-market with an account-to-account solution.
Summing up
With the help of new payment systems businesses have the opportunity to simplify the process of transactions, save on commissions and expand functionality, which is beneficial to market development and competition.
There is not much to start using electronic payment systems – just connect a client-bank or an electronic purse. Most of the systems can be easily automated and adjusted to the needs and desires of their clients.
From all this, the business gets not only the convenience of calculating the financial component of the project, but also attracts customers, who, naturally, will find it easier and more pleasant to work with the business.
The e-commerce segment is actively developing around the world, although a common barrier to the growth of the service is still the low level of public confidence in virtual currency.
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