Online payment service, Dwolla, has raised USD16.5m in a Series C round led by Andreessen Horowitz. Investment also came from existing backers Village Ventures, Thrive Capital and Union Square Ventures.
Dwolla’s software acts as a network through which individuals, as well as enterprises, can make standalone payments online without incurring the charges associated with credit or debit card transfers. The company claims to have forged partnerships with 800 banks and credit unions, as well as with its home state of Iowa where it helped businesses pay more than USD125m in taxes.
Having recently opened its fifth US office in San Francisco, Dwolla says it will use the capital to continue its geographical and team expansion, in addition to developing its enterprise products.
As the demand for immediate payments implementation grows in the United States, Iliad Solutions have identified one of the largest risks to face the payments industry over the next few years.
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.