[P2P-F] 28-year-old-is-making-sure-credit-cards-wont-exist-in-the-next-few-years

Fri Nov 18 17:46:29 CET 2011

It's a great interview Michel, 

we actually have reported on Dwolla before - there must be at least two articles I put on the p2pfoundation blog.

It is a very promising development. Basically what they do is they cut out the whole credit card scene, including Pay Pal, which has become a credit card entrance point. Dwolla does transfers directly from bank to bank, using a network that links the banks.

At first, they started out operating only in one or two states in the US, and then they extended coverage to all of the US. They are not, however, doing any international payments as yet. Once they have figured that out, they will make hay out of the credit card companies. 

That limitation (USA only) is also what kept me from using them so far, and it will probably keep you from using them, as we are not operating inside the US. But as soon as Dwolla goes international, I will be the first one to start using it and to recommend that everyone else do so as well. 

That said, they are not in the alternative currency scene at all. They are firmly in the official currency (US Dollar) transfer business. 

Kind regards
Sepp

here are the two articles we've published on them so far...

http://blog.p2pfoundation.net/?s=Dwolla

"The individual is supreme and finds the way through intuition"

http://www.newmediaexplorer.org/sepp/  
http://www.laleva.org
http://blog.hasslberger.com/ 
http://www.facebook.com/hasslberger
http://twitter.com/healthsupreme

.

On Nov 13, 2011, at 5:57 AM, Michel Bauwens wrote:

> http://www.businessinsider.com/this-28-year-old-is-making-sure-credit-cards-wont-exist-in-the-next-few-years-2011-11
> 
> dear Sepp, could you look at this, also in a practical way, I would intend 2 do fundraising  ..
> 
> See:
> 
> 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.
> 
> Can users only send money to Dwolla members?
> 
> No, you can send money to anyone.  Only the person sending it has to have a Dwolla account to initiate the transaction.  The person receiving it will have to sign up for an account, but we've been surprised at the conversion there.  It's worked relatively well.  We leverage social networks really heavily as contact lists, which is one thing we do really different.  You can send money with an email address or with a phone number, but the most popular way to do it is to connect to Facebook and type in a friend's name. 
> 
> 
> Read more: http://www.businessinsider.com/this-28-year-old-is-making-sure-credit-cards-wont-exist-in-the-next-few-years-2011-11?op=1#ixzz1dYfOMX8F
> 
> 
> 
> 
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