A pair of Iowa CUSOs has made a million-dollar investment in a home-grown money transfer platform and plan to help the peer-to-peer service grow.
The Members Group and The Veridian Group are backing Dwolla Corp. of Des Moines, a startup provider of online and mobile banking P2P transfers that said it charges 25 cents per transfer regardless of amount.
Des Moines-based TMG, a financial and payments services CUSO, said it will be the primary distributor of the Dwolla platform to community-based financial institutions and will provide product development and compliance guidance.
TMG and Veridian executives also will provide leadership as board members for the new company, they said. They said the new platform provides a unique system for consumers to make payments and move money through Dwolla, while providing a cost effective platform for merchants and small businesses.
"Dwolla's platform is an ideal blend of technology, security and convenience, and we're excited to be a part of its growth," said Jeff Russell, TMG executive vice president.
"Our collaborative investment with TMG in this Iowa-based company will help bring innovative financial services to credit union members." said Nick Evens, president of The Veridian Group, a CUSO of $1.7 billion Veridian CU in Waterloo, Iowa.