DES MOINES, Iowa (12/16/11)--Dwolla, the online, location-based, social and mobile payment platform, released a new feature Thursday called Instant, an opt-in feature that provides users instant access to cash, avoiding the two- to three-day waiting period for transfer of funds.
The feature is provided through a partnership with TMG Financial Services (TMGFS), a sister company of Dwolla partner and investor The Members Group (TMG).
"Instant puts the convenience of an ATM-like feature inside the pocket of our users," said Ben Milne, Dwolla founder.
Prior to the release of Instant, users could only initiate an immediate transfer of funds if they had money in their Dwolla account. If a user wanted to access money from a different source, such as a linked credit union or bank checking account, the transfer could take up to three days.
By opting in to Instant, users have a second option for transferring funds immediately. Those without enough funds in their Dwolla accounts or who want to bypass the two- to three-day waiting period to transfer funds from a linked account can choose Instant to pay for their purchase or transfer immediately, Dwolla said.
Instant is an opt-in feature available to all Dwolla users for $3 per month. When a user chooses Instant, Dwolla will extend a line of credit up to $500 to the user. No additional fees are charged for the first 30 days after the Instant transfer. If the Instant balance is not paid back in 30 days, the user will pay a $5 fee for every month the balance is carried.
"Consumers who have a frequent need for cash can pay large sums each month to access out-of-network ATMs," said Brian Day, Dwolla product leader for TMG. "Add in the convenience of mobility and social network integration, and it's easy to see why Dwolla and this new Instant feature will bring tremendous value to users."
TMG is owned by Iowa credit unions and their members.