Dwolla, one of the up and comers in the technology industry, is an e-commerce company that majors on the provision of online financial transactions. By integrating various technologies and systems, the company has created a money transfer platform that completely excludes the need for credit cards. This company operates on similar principles like PayPal so that the sender requires only the recipient’s name and email address. Unlike most of its competitors, whose charges depend on the volume of the transaction, Dwolla charges a fixed fee for transactions that exceed 10 dollars. In this regard, the company has witnessed a rising trend in the number of its users (Jonny, 2012). Dwolla’s approach concerning the charges on financial transactions gives it a great advantage over its competitors. Thus, the company has the potential to become dominant in e-commerce as its perspective concerning transfer charges depicts it as the most affordable service provider.


Dwolla’s adoption of a distinct strategy concerning the transaction fee gives the company competitive advantage over its rivals. The fixed rate of 25 cents for transactions above 10 dollars is a revolutionizing concept in online money transfer where the norm describes charges as dependent on the volume of transaction.

Get a Price Quote


Dwolla’s terms of trade are likely to attract a large number of customers, especially those that transact large amounts of funds. Due to great volumes of transactions, the company can derive significant financial benefits. Dwolla’s adoption of the FiSync system, which allows instant transactions, and the Grid service, which eliminates the need for credit card information online, is beneficial to its operations (Perez, 2012).


Dwolla’s rates can only produce significant benefits during large financial transactions. This predisposes the company to various finance risks due to its narrow scope of profit generation.


Dwolla’s operations occur only within the United States. Thus, the company has a smaller market compared to a large number of its competitors whose operations are global. This lack of diversification of risks is perilous in case of financial meltdown within the country of operation.

Benefit dealing with us!

Writers with academic degrees in major subjects

Every paper is absolutely authentic

No late deliveries! Never!

Direct communication with writer

Absolute privacy and security of your transactions

Only trusted payment instruments

Professional 24/7 customer support

Price calculator
DMCA.com Protection Status