A new money transfer service in Des Moines, Iowa, has drawn a $1 million investment from two Iowa CUSOs.
The Members Group and the Veridian Group have made the investment in Dwolla Corp. of Des Moines, a startup provider of online and mobile banking P2P services 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 the $1.7 billion Veridian CU in Waterloo, Iowa.
"Our recent capital investment from TMG and the Veridian Group creates a strategic business relationship worth more than money. The relationship validates our mission to craft a technology that empowers individuals and organizations to share and spend money while avoiding the high costs associated with many other payment systems," said Ben Milne, CEO of Dwolla.