Dwolla raises $5M to expand digital payments network

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Digital payments network Dwolla has completed a Series B financing round totaling $5 million. Union Square Ventures led the round, with Village Ventures, Thrive Capital, Artists & Instigators and Paige Craig also participating.

The free Dwolla software platform enables mobile and online users to send, receive and request funds from any other user, linking directly to consumers' bank accounts to enable them to pay for goods and services while bypassing traditional transaction methods. Dwolla charges a fixed fee of 25 cents per transaction, making all transactions valued at $10 or less free of charge. Dwolla offers mobile applications optimized for Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG), both updated earlier this month.

On the Dwolla blog, founder and CEO Ben Milne writes the startup has grown its userbase by 2,500 percent over the last year, also increasing merchant partnerships by 3,700 percent. Dwolla will leverage the new funding to continue its product development efforts and expand its APIs.

For more:
- read this Dwolla blog entry
- read this TechCrunch article

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