Payments network Dwolla has eliminated its 25-cent fee for trnsactions over $10 and has replaced it with tiered pricing packaging for premium services, ranging from next day transfers and settlements to priority support.
In a blog post, company head Ben Milne said that removing transaction fees done to add more features. However he hinted at more paid features to come.
Dwolla has been quietly providing features, services, and custom software to specific clients for years and we’re excited to make these simple features available to other members of the network today. We’re starting with a small list of paid features and will continue to expand.
The pricing change represents a shift in the company’s business model. It has been working to replace the traditional payment networks for years, and the transaction fee was both an echo of and contrast to the traditional payment networks. Time will tell whether a freemium model can work for payments. The test will be whether customers believe that the features are worth the price or if they are just content moving money at no cost.
Overview by Ben Jackson, Director, Prepaid Advisory Service at Mercator Advisory Group
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