3 ms·
That's awesome that Dwolla is moving 350 million a year, but I wonder how many total transactions that sums up to. Since they're charging per transaction, showi
by xxbondsxx 15y ago
That's awesome that Dwolla is moving 350 million a year, but I wonder how many total transactions that sums up to. Since they're charging per transaction, showing a net transfer amount doesn't really give any ideas about total revenue or if they are profitable yet.
It's an interesting price model for sure, but I'm surprised they just didn't do the typical "under-cut everyone else" strategy. It would be hard for me to stomach seeing $1 million transfer through my system and only 25 cents getting deposited in the company bank account. I mean that's a %0.000025 cut, and since this service is so convenient, I imagine they could charge more.
Remember, things aren't priced at what they are worth but what people will pay for them. Even a 0.5% cut gives you 5k on a million dollar transaction, and that's still tons better than paypal.
- rarrrrrr 15y agoFrom the article: "The average transaction volume for Dwolla is right around $500 dollars. We move between $30 and $50 million per month." So that's 60k to 100k transactions for $15k to $25k per month in fees.
- xxbondsxx 15y agoAh thanks, I missed that. So 180k a year? That's honestly not a whole ton for a startup that big...