Dwolla continues to innovate. Earlier this year the Des Moines, Iowa-based start-up released its Spots service that allows consumers to make payments at brick-and-mortar merchants using the Dwolla app linked to their bank account. The system bypasses traditional credit and debit networks and only costs merchants 25 cents a transaction to receive funds.
Consumers could also use the GPS features on their smartphones to locate Dwolla-enabled merchants through the Dwolla app.
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Now Dwolla is looking at peer-to-peer (P2P) transactions. The company released a beta version of its new Proxi service yesterday. The new service allows Dwolla account holders to locate and pay other Dwolla members using their phones' GPS discovery capabilities.
On the company's blog, Dwolla CEO Ben Milne said the new service turns Dwolla users "into movable Spots without additional hardware, like NFC or dongles."
A video from Dwolla of how its new Proxi service works is below:
The company also announced today on its blog that a new feature allowing members to send money to other members using registered cell phone numbers would be included with its next iOS release.
For more on peer-to-peer mobile money transfers, please visit our P2P research center.