Dwolla partners with the state of Iowa
The folks at Des Moines, Iowa-based payment startup Dwolla are showing that rebels can be good citizens. The company, which proudly proclaims its role as a potential disruptor in the payment space, is working with the Iowa government to provide denizens of that state a new way to pay their taxes, one that is safe and secure for the taxpayer and cheaper for the state government.
At a ceremony earlier this week, Iowa Gov. Terry E. Branstad and Lt. Gov. Kim Reynolds were joined by Dwolla's outspoken founder Ben Milne to announce the partnership.
"Iowa is always looking for better ways to do business, and this is a step in the right direction," the Republican governor said of the partnership. "Iowa is proud to be partnering with a great Iowa company."
Through the new partnership with Dwolla, Iowa's government will look for ways to use Dwolla's payment platform, which charges a fixed fee of $.25 for any transaction of more than $10, to collect property taxes, issue refunds or pay contractors.
"This new method is an efficient, effective means of payment for Iowa taxpayers, and I look forward to expanding this service into additional areas within state government," Branstand said.
The first integration between Dwolla and Iowa will allow businesses that pay the state's cigarette stamp tax the option of paying via Dwolla. That's potentially $100 million in state revenue flowing through Dwolla.
The effort with its home state is just part of Dwolla's larger effort to reach out to governments as potential users of its platform.
"The number of state and federal payments are in the billions with transactions totaling in the trillions, meaning even a fraction of savings could have a profound effect on the economy," said Ben Milne, Dwolla's CEO and founder. "This partnership is about creating a more sustainable, responsive, and convenient business climate for the state and its taxpayers, both today and tomorrow."
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