DES MOINES, Iowa (6/2/14)--Dwolla, a person-to-person payments provider, is launching next-day transfers for small businesses.
The new service aims to help small businesses replace paper checks, mitigating the estimated $13 billion spent annually on paper check operations. The next-day transfer service will reduce bank transfers in and out of the Dwolla network to as little as two business days.
Among the benefits the service will offer member businesses:
Qualifying business, nonprofit and government accounts can receive transfers from a bank account to their Dwolla account three times faster than a typical ACH transfer.
For all users, transfers from a Dwolla account to their financial institution may be transacted as soon as the next day.
Dwolla-to-Dwolla transfers are still instantaneous.
To facilitate the conversion to digital money transfers, the Iowa-based payments startup is also providing a business payments toolkit to help companies switch from paper checks.