This 28-Year-Old's Startup Is Moving $350 Million

[mine]

This 28-Year-Old's Startup Is Moving $350 Million And Wants To Completely Kill Credit Cards

There's a tiny 12-person startup churning out of Des Moines, Iowa.

Dwolla was founded by 28-year-old Ben Milne; it's an innovative online payment system that sidesteps credit cards completely.

Milne has no finance background yet his little operation is moving between $30 and $50 million per month; it's on track to move more than $350 million in the next year.

Unlike PayPal, Dwolla doesn't take a percentage of the transaction. It only asks for $0.25 whether it's moving $1 or $1,000.

We interviewed Milne about how he is building a credit card killer and Square rival from the middle of the nation where VCs and press are scarce.

Read more: Dwolla

[rsot]

Innovation - solid.

[FandangoKango]

Just wait till fraud comes along and kills the biz.

[Sandy D]

Very impressive for sure.

[jeffweico]

Originally Posted by FandangoKango

Just wait till fraud comes along and kills the biz.

I agree. Given their business model, they must be under attack by every fraud artist on the planet.

The Credit Card issuing banks can take some losses due to fraud since they receive 2% - 3% for each transaction from the merchants and all types of fees and interest from consumers.

At 25 cents per transaction, Dwolla cannot afford any losses due to fraud. I really do wish them the best, but I am not convinced their business model will work in reality.

[Gamefreak]

Only a matter of time before he starts charging 2.9% like every other company. When your small no one wants to mess with you as the payoff is low.

[beneysz]

Yeh thats smart..the question is will he ever freeze your money for 180 days telling you its what is best for eveyone elses safety!!

[rsot]

Not available outside US yet?