Dwolla Says, Be My Guest

by Mercator Advisory Group 0

Innovation implies that there is value to changing the status quo aside from the change itself. Covering emerging companies over the past few years, there are more than enough good examples of bad ideas.

Dwolla is a company founded on the premise that there is a better, less expensive way to process consumer payments and it has stuck to its guns. Cusiness accepting a Dwolla-branded payment still pay a 25-cent fee . But converting consumers to use Dwolla takes an entirely different strategy. So, while other such companies require consumers to register with them in order to send or receive payments, Dwolla is inviting consumers to be a guest.

The problem is that in order to be a guest, the consumer still has to provide enough information to a complete the transaction and that experience looks a lot like registering.

From The Next Web:

For the consumer, the process feels very standard, but the experience is more attractively designed than what PayPal currently offers. The downside, of course, is that Dwolla is less known by the public and unfortunately, customers will have to verify their phone in addition typing in credit card details.

Give Dwolla credit for trying out something new, even if it’s tinkering with the experience. But until Dwolla and other cash-displacement oriented products begin to interact with one another, the consumer might not find the guest experience much easier than just going ahead and signing up.

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