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At 40MM/month, with average transaction of $500, and a $0.25 fee for each transaction, they make $20,000 per month revenue... After you pay employees (12 people

At 40MM/month, with average transaction of $500, and a $0.25 fee for each transaction, they make $20,000 per month revenue... After you pay employees (12 people), other costs (including legal), and take a hit from fraud, I can't imagine there is a great upside to this business unless they start doing at least 100x more volume. Concidering the nature of the business, I don't see this happening.

derwiki 15y ago
You could have said the same thing about Craigslist. Sometimes it's more important to be disruptive.
- powertower 15y ago
  Consumers arn't getting rid of their credit cards any time soon. Why would they? They get 1) credit, 2) get to dispute anything they want off the bill, 3) don't pay any type of fee. And the merchants don't drive payment options ... they simply accept what consumers provide. Also, IMO, the moment fraudsters target Dwolla, is the moment Dwolla realizes that a 2-7% transaction fee is necessary to stay in business.
  - dethink 15y ago
    Consumers pay the fees. Just not directly.
    - icebraining 15y ago
      Costumers don't pay fees for having a CC. They pay fees because CCs exist, regardless of whether they have one or not. Which means using Dwolla or a CC is irrelevant in that regard.
      - breck 15y ago
        Many PoS merchants also now charge surcharges for using cards. (which I admit for a merchant only makes financial sense if you underreport cash on your taxes--otherwise it seems the costs of handling cash coupled with lack of reporting is drastically more than the interchange).
- teej 15y ago
  Craigslist was profitable from the start. Dwolla is nowhere close. Being disruptive doesn't matter if you can't stay in business.
kfcm 15y ago
Using my awesome math skills, it would take 4 million transactions/year to break $1MM in revenue. Or roughly 11K/day, 460/hour. That's easy, if they can grow their user base.
kahawe 15y ago
Being disruptive doesn't matter at all if you cannot remain solvent so looking at those numbers, they have got to be whXXXng themselves out to their investors.

derwiki 15y ago

You could have said the same thing about Craigslist. Sometimes it's more important to be disruptive.

powertower 15y ago
Consumers arn't getting rid of their credit cards any time soon. Why would they? They get 1) credit, 2) get to dispute anything they want off the bill, 3) don't pay any type of fee. And the merchants don't drive payment options ... they simply accept what consumers provide. Also, IMO, the moment fraudsters target Dwolla, is the moment Dwolla realizes that a 2-7% transaction fee is necessary to stay in business.
- dethink 15y ago
  Consumers pay the fees. Just not directly.
  - icebraining 15y ago
    Costumers don't pay fees for having a CC. They pay fees because CCs exist, regardless of whether they have one or not. Which means using Dwolla or a CC is irrelevant in that regard.
    - breck 15y ago
      Many PoS merchants also now charge surcharges for using cards. (which I admit for a merchant only makes financial sense if you underreport cash on your taxes--otherwise it seems the costs of handling cash coupled with lack of reporting is drastically more than the interchange).
teej 15y ago
Craigslist was profitable from the start. Dwolla is nowhere close. Being disruptive doesn't matter if you can't stay in business.

kfcm 15y ago

Using my awesome math skills, it would take 4 million transactions/year to break $1MM in revenue. Or roughly 11K/day, 460/hour. That's easy, if they can grow their user base.

kahawe 15y ago

Being disruptive doesn't matter at all if you cannot remain solvent so looking at those numbers, they have got to be whXXXng themselves out to their investors.