Dwolla, a digital payment network, has expanded its reach into the payments ecosystem through its expanded partnership with Comenity Capital Bank that allows users to apply for a line of credit and get instant access to funds.
And now, with its new feature, it’s jumped further into the P2P payments space by allowing users to leverage that credit to pay friends and family. Here’s how the new feature works, according to Dwolla: Simply type in an email address, phone number, or eligible business and choose Credit as your funding source.
“Credit allows individuals instant access to funds, bypassing the traditional 3 to 4 business day wait time associated with bank-funded transfers into your Dwolla account,” the company post explained. “Simply use what you need, and pay off your balance by the payment due date on your monthly billing statement.”
This means that users can send money in a single transfer (up to $500 per transaction) without paying any fees, thereby helping avoid interest and extra fees commonly associated with the same types of payments. Using that Dwolla email address, users can send up to $3,000 a month in this manner.
“Pure and simple it’s card-less, interchange-less credit the way that you want it,” Dwolla wrote in its blog post about the new feature.
While the news today is focused on the new credit payment feature, this move from Dwolla also showcased how the company is working to help banks work through online payment networks by keeping a digital payments framework in mind. Dwolla’s goal, overall, is to help banks get their traditional services up to speed in a way that’s fast and affordable.
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