Dwolla just keeps getting worse and worse. Pretty soon it will be PayPal. This just highlights the need for Bitcoin in the marketplace.
I said this in another thread... I'm wondering if the 25c thing is actually sustainable, or if they're just doing it burning through venture capital hoping to hit critical mass before they run out of the ability to secure more funding, before going to a more paypal-like pricing schedule.
I mean if you think about it, sure the folks involved in paypal are money-grubbers, but greed isn't the only motivator for them doing the things they do. The idea that just doing things like not screwing over clients and not charging the 30c+3% fees is so easy... well if it was, why isn't everyone doing it? Not that I think Paypal's margins are terribly thin or anything, but Dwolla is really starting to look like it was too good to be true.
Even if you disregard Bitcoin, I was really rooting for Dwolla, because when we sell stuff for $5/month and no less because anything below that and we start getting burnt in Paypal costs.... 25c transactions seem really attractive. But if they're just going to be another Paypal in a few years I don't really feel like investing any time in them.
What a well thought out post, and I agree with most of it.
I liked Dwolla, but always wondered when it was going to fall apart. It just didn't make any sense: If it was possible to move that much money around with so little fees why hadn't anyone done it before?
Same answer as why doesn't paypal have more competitors. It's a huge legal due dilligence pain in the ass requiring a ton of startup money to do it right. I think the answer is that Dwolla just skipped the details, "we'll figure it out later". Now that they are figuring it out, they are scrambling.
They haven't acknowledged me at all, but I did suggest to them via e-mail to lawyer up jointly and severally about 2 weeks ago, and it seems like they have done so, at least jointly. A little "thanks for warning us how deep the hole we were digging was" would be nice, but oh well.
All I got was a request to upload my govt-issued photo ID. Pfffft.