Visa is busy as always. Here are a few comments on Bloomberg about their shift to embrace tokenization, gateways, and the shift from physical to digital.
Dwolla, as a network… has no money. It’s not a bank. DWolla does not hold money. The DWolla network talks to banks on behalf of members of the network.
Your money, my money, is already virtualized. The first time I was explaining that concept to a bank they looked at me sideways and the room fell silent. That happened again and again and again and still happens today.
It’s happened in local banks, regional banks, and global banks.
The cash in your pocket is a UI. It’s a trigger to post to a balance sheet in a computer. That check you write, it’s a trigger to get a balance from point A to B. The card you carry—just calls a server and tells the money to go from you to the person or company they represent who swiped it. Each one of these sentences could be a blog post on its own.
Dwolla is an efficient trigger. It is real-time by default, and there is nothing physical in the whole equation except for the computers that access the network and the people writing code, answering e-mails, and talking about it, to make the network better.
Dwolla, is built on the internet. Dwolla, is code.
I had a realization the other day. I got an e-mail that this blog had a new comment. Great! I thought… Another troll.
Low and behold it was my wife. Beautiful, thoughtful, and a lover of vinyl.
I came across this somewhere I can’t actually recall but I’ve watched it no less than 2 dozen times. It’s just such a terrific view into how technology eats things.
What is most fascinating to me is that you can see some general trend that is likely to happen again, although I can’t quite imagine what the again part will look like.
Consumption typically follows cost, portability, speed of delivery, and storage capacity.
Businesses want to get paid faster and they don’t want to pay a fortune to do it. That is not complicated.
Most payments on the Dwolla network happen in real-time but that doesn’t mean at some point the money doesn’t go in or out of accounts that don’t have real-time available. Every time that happens there is/was this nasty 3-5 day wait.
Now, it’s just a day for certain businesses. No preloading. No shenanigans. All withdraws got significantly faster as well.
The cost of a check to a small business is $7.15 per check.