DES MOINES, Iowa (12/2/11)--Dwolla, an online, location-based, social and mobile payment platform supported by The Members Group (TMG), Thursday announced it will no longer charge its 25-cent transaction fee for payments of $10 and below.
TMG is a wholly owned subsidiary of the Affiliates Management Co., which is owned by Iowa credit unions and their members.
Removal of the fee should be favorably received among merchants who conduct small-ticket transactions, and in in-app purchases found in many mobile applications, Dwolla said.
"To date, Dwolla merchants have been willing to pay the quarter, even on micropayments, because they recognized the unique value," said Brian Day, Dwolla product leader for TMG. "Not only are retailers attracted to the 'wow' factor of mobile payments acceptance, they see the buzz-generating potential of Dwolla's social media interaction. A customer buys a coffee with Dwolla and instantly 150 of his Facebook friends are exposed to the name of the coffee shop."
No changes in product or service accompany Dwolla's drop of the fee, so merchants will continue to receive the same benefits--now at no cost on small transactions.