Dwolla has launched a “white-label” payments processing service, meaning other businesses and banks can sign on to use Dwolla’s money-transfer system, but won’t have to put Dwolla’s label on it.
Dwolla CEO Ben Milne said the white-label service is intended for companies that want to
Dwolla starts white-label service
use the money-transfer system Dwolla has built without having to ask others to sign up for a Dwolla account.
“This really falls into that category of how do we leverage Dwolla’s infrastructure and Dwolla as a platform to give our customers what they want,” says Milne. “In this case, our customers don’t always want our name on it.”
Other payments processors, such as MasterCard, also offer white-label services.
The white-label service is also the another step as Dwolla tries to grab more ground in the competitive e-payments industry.
Instead of relying solely on consumer-to-consumer payments, which is how Dwolla started, company officials have said they’re going after more banks, financial institutions and businesses that transfer large amounts of money.
“When we sort of got into this, the thing that’s on the wall in Dwolla’s office is ‘building the ideal way to move money,’” continues Milne. “To continue building the ideal way to move money, we’re going to need to continue to build additional revenue streams and not just build new features.”
The move won’t eliminate the Dwolla.com interface many individual consumers see. Those bigger deals, however, likely won’t have Dwolla’s name behind it, only the company’s system.
