Prediction: Dwolla will get bought by a huge banking conglomerate

[barbarousrelic]

. . . and abandon its support for Mt.Gox. Will things keep on going smoothly without them? Maybe it will not make a huge difference, we have BitInstant, but it is something to be aware of.

I am virtually certain they will get bought, it happens to so many similar companies.

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[BusmasterDMA]

Or if not by a banking conglomerate, perhaps by a large tech company such as Facebook or Google.

[Yankee (BitInstant)]

. . . and abandon its support for Mt.Gox. Will things keep on going smoothly without them? Maybe it will not make a huge difference, we have BitInstant, but it is something to be aware of.

I am virtually certain they will get bought, it happens to so many similar companies.

Right now, Dwolla fills a void. They do 2 things- verification of a customer and ACH

We've gotten an ACH license to pull directly from your accounts, right now our biggest hurdle is the verification and KYC stuff.

Hopefully that should be sorted in weeks time and we will easily replace Dwolla.

Once you can use Bitinstant to do ACH for a fraction of the current cost, then Dwolla will become redundant. They will lose alot of revenue to Bitinstant and to Bitcoin.

Don't forget, a nice chunk of Dwolla's % monthly revenue stream comes from Bitcoin. They know it, and we know it. Why do you think they still work with us?

Our reliance on Dwolla will soon go away!! Just need to hang in there a little longer  

-Charlie

[tarrant_01]

a fraction of the current cost

Isn't their current cost 25 cents for each transaction? That's pretty cheap.  Do you plan on matching that instead of the 3.99% fee now?

[Yankee (BitInstant)]

a fraction of the current cost

Isn't their current cost 25 cents for each transaction? That's pretty cheap.  Do you plan on matching that instead of the 3.99% fee now?

The 3.99% fee is only for cash deposits.

Dwolla's fee is $0.25 but it takes 7 days to get verified and set up.

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

[Serge]

Dwolla's ACH turnover is 3-5 business days

if you can do it within 24 hours, 1% is pretty reasonable

[rjk]

Dwolla's ACH turnover is 3-5 business days

if you can do it within 24 hours, 1% is pretty reasonable

+1

[EuSouBitcoin]

a fraction of the current cost

Isn't their current cost 25 cents for each transaction? That's pretty cheap.  Do you plan on matching that instead of the 3.99% fee now?

The 3.99% fee is only for cash deposits.

Dwolla's fee is $0.25 but it takes 7 days to get verified and set up.

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

It depends on the amount of money. Less than $25, 1% is better. More than $25, $0.25 is better. If I'm transferring $5,000 from my checking account to Mt Gox would I rather pay $50 for BitInstant vs slower service from Dwolla for $0.25? It depends on how much of a hurry I'm in. I see room for both services. We have convenience stores that offer quick shopping but cost more and we have big grocery stores with lower cost but it takes more time to get in and out. +1 for offering the service. Competition is good for the Bitcoin consumer.

[Andrew Bitcoiner]

I know I am betting on BitInstant blowing Dwolla away.

BitInstant just needs mobile apps.

[eleuthria]

a fraction of the current cost

Isn't their current cost 25 cents for each transaction? That's pretty cheap.  Do you plan on matching that instead of the 3.99% fee now?

The 3.99% fee is only for cash deposits.

Dwolla's fee is $0.25 but it takes 7 days to get verified and set up.

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

When my Dwolla account receives cash, its automatically moved to my checking account, and shows up within 2 business days.  I'd much rather pay $0.25 than 1%, even if you claim you can cut the wait time in half (2 days -> 1 day).  How long it takes to verify your account the first time is pretty irrelevant.


A 1% fee is simply too high to process a withdrawal.  It would cost me at least 50x what I pay Dwolla, if not more.

[evoorhees]

When my Dwolla account receives cash, its automatically moved to my checking account, and shows up within 2 business days.  I'd much rather pay $0.25 than 1%, even if you claim you can cut the wait time in half (2 days -> 1 day).  How long it takes to verify your account the first time is pretty irrelevant.


A 1% fee is simply too high to process a withdrawal.  I'd be paying you at least 50x what I pay Dwolla, if not more.

I've used Dwolla many times to move money from the Bank to Gox. There have been occasions where it took 10 calendar days before the money appeared in Dwolla, and the average time I'd say is 5-6 calendar days (including weekends). The Bitcoin price can often change by more than 1% in less time then that, so waiting a week just to save 1% might actually cost you both a week and more than 1%.

Everyone will have a different time-preference for their money, of course, but given the volatile nature of BTC, speed is very valuable.

[eleuthria]

I've used Dwolla many times to move money from the Bank to Gox. There have been occasions where it took 10 calendar days before the money appeared in Dwolla, and the average time I'd say is 5-6 calendar days (including weekends). The Bitcoin price can often change by more than 1% in less time then that, so waiting a week just to save 1% might actually cost you both a week and more than 1%.

Everyone will have a different time-preference for their money, of course, but given the volatile nature of BTC, speed is very valuable.

I'm talking only about withdrawals, not deposits.

[Yankee (BitInstant)]

I've used Dwolla many times to move money from the Bank to Gox. There have been occasions where it took 10 calendar days before the money appeared in Dwolla, and the average time I'd say is 5-6 calendar days (including weekends). The Bitcoin price can often change by more than 1% in less time then that, so waiting a week just to save 1% might actually cost you both a week and more than 1%.

Everyone will have a different time-preference for their money, of course, but given the volatile nature of BTC, speed is very valuable.

I'm talking only about withdrawals, not deposits.

We are strictly talking about deposits here. Deposits are more expensive because we need to verify identity and KYC

[Stephen Gornick]

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

The more appropriate question is ... knowing the levels of ACH fraud that occurs can you actually provide that service for 1%?

[Yankee (BitInstant)]

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

The more appropriate question is ... knowing the levels of ACH fraud that occurs can you actually provide that service for 1%?

Thats the hard part, working on it.

[dustintrammell]

The 3.99% fee is only for cash deposits.

Dwolla's fee is $0.25 but it takes 7 days to get verified and set up.

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

Honestly, no.  I'm in no hurry to move money around, and $0.25 is significantly cheaper than 1% for me, considering I max out my Dwolla transfer limit with every transfer.  I'm guessing I'm not the average customer though.

[cbeast]

I agree with the prediction. I've used Dwolla for many small transactions, but Bit-Instant for more money transfered. Add to that the Tradehill fiasco, and I would stop using Dwolla altogether if Bit-Instant offered 1% transfers in a day or two.

[miscreanity]

The 3.99% fee is only for cash deposits.

Dwolla's fee is $0.25 but it takes 7 days to get verified and set up.

If I can do ACH for about 1%, but the turnover is about 24 hours, would you pay it?

Absolutely.

[barbarousrelic]

Why do cash deposits have a higher fee? Doesn't that method have zero possibly of reversals and the lowest fraud?

[Yankee (BitInstant)]

Why do cash deposits have a higher fee? Doesn't that method have zero possibly of reversals and the lowest fraud?

Its the most expensive and least profitable revenue stream for us. We have merchant fees associated with doing cash deposits.