#1 2011-11-11 21:12:53
A question for those who may have some knowledge of how this works.
Anyone have any critique of Dwolla as a payment network?
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#2 2011-11-11 22:04:32
Sounds rather cool to me. Kill The Banks!
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#3 2011-11-11 22:28:42
Johnny_Rotten wrote:
A question for those who may have some knowledge of how this works.
I don't have a clue, but I know an MBA and I've passed the article along. If I get a response I'll let you know what it is.
The article's very optimistic and positive and admiring, but I'm not savvy enough to know how much of that might be spin. I remember seeing a very admiring piece on 60 Minutes about Enron with very much the same tone, just a few months before everybody learned better.
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#4 2011-11-12 00:03:15
I hope they have really good fraud prevention networks. A significant percentage of your financial services fees goes to pay fraud prevention specialists and to pay into an "insurance pool" that reimburses credit card owners when their accounts are used without their knowledge.
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#5 2011-11-12 09:43:54
The platform was originally built for taking in payments through websites, and we have APIs that allow you to do that.
This set off warning sirens in my head...
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#6 2011-11-12 22:41:01
OK, so let's do a little simple math...
The facts:
-- He says he does $1,000,000 in transactions per day, on average.
-- He says his average transaction value is $500.
So...
$1,000,000 / $500 = 2,000 transactions per day
$0.25 * 2,000 = $500 profit per day
$500 * 365 = $182,500 (before taxes)
Doesn't sound like he's making enough to support himself and the business, much less supporting any employees.
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#7 2011-11-12 22:52:31
whosasailorthen wrote:
OK, so let's do a little simple math...
The facts:
-- He says he does $1,000,000 in transactions per day, on average.
-- He says his average transaction value is $500.
So...
$1,000,000 / $500 = 2,000 transactions per day
$0.25 * 2,000 = $500 profit per day
$500 * 365 = $182,500 (before taxes)
Doesn't sound like he's making enough to support himself and the business, much less supporting any employees.
For the moment, and not at this small scale. That also doesn't include any fees/subscriptions he may be getting from whatever he's doing to pipeline cash between banks.
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#8 2011-11-12 23:26:23
This type of product is difficult to ramp to profitability without massive investment.
We've raised $1.3 million.
They need much bigger vulture capitalists on board.
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