OpenWeb 11/16/2011 (a.m.)

• This 28-Year-Old's Startup Is Moving $350 Million And Wants To Completely Kill Credit Cards - Business Insider

  Page one of this extrordinary Business Insider interview of Ben Milne, founder of Dwolla.  Lots of highlights on this 3 page article.  An absolute must read.  Dwolla is using the Web and mobile Web connectivity to truly disrupt the massive Credit Card transaction and payment industry.  Built on top of the legacy Bank ACH payment and reconciliation system used by all Banks. This is awe-sum!  A recent economic study claimed that 40% of all transactions is "interest payment".  For Governments, it's 50%.  The Banksters are getting their vig at every turn, with Credit Cards accounting for much of the productivity-sales formula of invest, build, service, and sell.

  Tags: Dwolla, Banksters, Credit-Card-Payment-Industry

  • - By Gary Edwards
  • really strategic investors, which is what we did. One of our investors is a financial institution; one is a financial services company. 
  • Our investors do credit and debit processing for banks.  So when you get a credit card from your bank, it's being issued by companies like them.  Our investors are also distributing our product to financial institutions.  So we've been building a payment network, and we can do it legally because of who our investors are.

• This 28-Year-Old's Startup Is Moving $350 Million And Wants To Completely Kill Credit Cards - Page 2 - Business Insider

  Incredible interview with Ben Milne of Dwolla, the PayPal and Square killer that promises to take a huge chunk out of the Credit Card transaction industry.  Incredible must read!  This is page 2 out of four.  Starts at: http://bit.ly/vzVUy3 excerpt: How does Dwolla work and how is it different from PayPal? With Dwolla, payments are made directly from your bank account.  No credit or debit cards are allowed.  And because they don't exist in the system, we don't have to bring the fees into the system.  You can spend any amount of money and when you do that, the person on the other end doesn't have to pay 1, 2, 3 or 4%. They only pay $0.25 a transaction, which is especially helpful when it's $1,000, $2,000 or $5,000 transactions.  Obviously PayPal becomes very cost prohibitive with those larger transactions.   The biggest difference between ideas like this and a PayPal — and PayPal is a phenomenal idea, Square is too — is that those are built on top of networks like Visa and MasterCard. We're building our own.

  Tags: Banksters, PayPal, Square, Credit-Card-Payment-Industry, Dwolla, Ben-Milne

  • - By Gary Edwards
  • The biggest difference between ideas like this and a PayPal — and PayPal is a phenomenal idea, Square is too — is that those are built on top of networks like Visa and MasterCard. We're building our own
    • - By Gary Edwards

  • All banks are connected by one ACH system.  Credit card companies utilize that same system to pay off your credit card charges.  Banks internally set along that same system to move money in their own banks.  This system in its own right is riddled with flaws — tons of fraud issues and waste and delays.  If you've ever had a payment take a few days to clear, its because they're waiting on that ACH system. 

    We want to fix that system between the banks, take out the delays and make it instant.  If we can create this ubiquitous cash layer of distribution between consumers and merchants and developers and financial institutions, that actually fixes the problem.

  • We don't believe in credit cards.  We believe in authorization and in lower cost transfers.  Our generation actually understands that when you buy sh*t, it comes out of your bank account and you have to pay for that.

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