15 Feb
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Dwolla by the numbers. We are good for your business.

While doing a presentation this week for a fairly large user (merchant) something finally sank in. We’ve been talking all this time about how much money you could save with Dwolla but the numbers really put this into perspective.

This particular client had a potential savings of over $18 million dollars annually. This is just 1 user. To make the deal even better they get to do it in a way that costs them next to nothing and allows their clients to pay in a way that was never before possible- with their cell phone.

We have talked about the $48 Billion dollar elephant before but have not laid it out so it could be visualized.

Another such example of the savings Dwolla can bring to a business is a Dwolla integration we just finished with a very large local client whose projections for electronic payments (credit cards) went from $3 Million+ annually to under $40,000 annually by using Dwolla.  When you start comparing Dwolla fees to other payment platform fees, numbers like this really are not that far fetched.

So how much can you really save with Dwolla? A LOT, very quickly. Every time someone pays with Dwolla..money is saved!

For A $1M company Dwolla represents a new product line, a new full time employee, or a very serious bonus for someone in sales.

For a company that has $100Million in annual transactions, the savings that could be realized using Dwolla are upward of $2.75Million.  Now imagine what a company this size could do with $2.75M!

Imagine the savings for a coffee shop: for every $5 transaction, .20 cents can be saved using Dwolla.  15 transactions later, this coffee shop basically earned a free container of Soy Milk by using Dwolla. The savings that can be achieved with Dwolla really starts to turn the whole ‘buy X get X free concept’ on it’s head doesn’t it?

It doesn’t take very many $15 meals at your local hot spot to pay for those ketchup bottles on the table pretty quickly!

Every SUV that fills up at Casey’s or Kum & Go is worth another $1.55 to them by using Dwolla. Considering the markup in gas… That is a pretty big deal.

If Dwolla can instantly cut $30+ dollars out of every $1,000 your company takes in for rent every month… How long will it take to pay for the integration? Not very long if the integration is free and takes about 30 seconds to set up.

The savings start to compound pretty quickly and so do the cases for why your business should have a dwolla account.

  • It costs nothing to start
  • It saves you money every time someone pays with Dwolla
  • It lets people pay with their cell phone without major starting costs or new hardware boxes
  • Your return on investment of time to integrate Dwolla is realized the first time you receive a payment. From that first time on out you are just making more money for your business.
  • The fees associated with other electronic platforms (credit cards, etc.) just get darn right hurtful for charities / non-profits. Dwolla allows you to maximize those contributions… Without the start up costs of other services.

Dwolla is a no brainer. If you’re in a position where Dwolla represents $50 or even $18M+ in annual savings and it costs you nothing to get started… What are you waiting for?

Dwolla works in both retail and web environments. Consider a few other details:

  • Dwolla is on par to process $1M in transactions this month
  • Dwolla is saving a lot of people a whole lot of money every day
  • David D.

    And that’s on top of the fact that allowing 5 different types of credit cards will cost you a certain flat fee. As well as the different percentage of transaction fee based on the card type.

  • http://48web.com Andy Brudtkuhl

    would love to see those numbers side by side with PayPal too

    • http://www.godatplay.com God at play

      And now we have thanks to you Andy. Nice post on 48Web :)

  • Mike Gorski

    For those businesses that are accepting Dwolla what kind of mix are they seeing currently for Dwolla vs. CC/Debit Cards? What % of transactions are Dwolla for them?

    The analysis above makes a big assumption that 100% of your current CC/Debit Cards will transition to Dwolla. There’s no way that will happen.

  • http://discrevolt.com Matt Shamus

    We find that credit card fees typically are greater than 3% (all said and done) plus you have to deal with chargebacks, etc.

    Love what you guys are doing!

  • http://www.hornit.net Aaron

    So are you saying that some Casey’s and Kum & Go stores now accept Dwolla? Where can I find a full list of local companies that accept Dwolla as payment? Thanks! Looking forward to having the excuse to actually use my account!

    Aaron

  • http://storeV2.leeflangarchives.com Peter L

    Of course it is interesting t o see teh savings for merchants, but as a merchant
    I’m most interested in seeing your ‘acceptance level strategy’ for Dwolla amongst buyers, not sellers.

    A savings can only materialize with substantial ‘buyer acceptance’.

    And that will not result from merely giving buyers ‘registration functionality’ at transaction time. It requires signing them up in big number ‘pre-transaction time’, preferably via their banks.