Dwolla vs Stripe: What are the differences?

Introduction

Dwolla and Stripe are both online payment processing platforms that allow businesses to accept payments online. However, there are key differences between the two platforms that businesses should consider when choosing a payment solution.

1. Pricing and Fees: One of the main differences between Dwolla and Stripe is their pricing and fee structures. Dwolla offers a flat transaction fee of $0.05 for transactions over $10, with no percentage fee. On the other hand, Stripe charges a percentage fee of 2.9% + $0.30 per transaction, which can vary depending on the country and currency. This difference in pricing can significantly impact the overall cost for businesses, especially for those processing high-value transactions.

2. Payment Methods: Another important difference between Dwolla and Stripe is the payment methods they support. Dwolla primarily focuses on bank transfers, allowing businesses to facilitate transactions directly from customers' bank accounts. Stripe, on the other hand, supports a wide range of payment methods including credit/debit cards, digital wallets, and bank transfers. This versatility in payment methods offered by Stripe can provide businesses with more flexibility in catering to their customers' preferences.

3. Integration and Development: When it comes to integration and development, Dwolla and Stripe provide different options for businesses. Dwolla offers a robust API that allows businesses to build custom payment solutions and integrate them into their existing systems. Stripe also provides an API, but it goes beyond payments and includes additional functionality such as subscription management and fraud prevention tools. This broader range of features offered by Stripe can be advantageous for businesses looking for a more comprehensive payment solution.

4. International Support: Dwolla primarily focuses on domestic transactions within the United States, while Stripe offers international support in over 39 countries. This difference in international coverage can be crucial for businesses operating on a global scale or targeting customers outside of the United States. Stripe's worldwide coverage allows businesses to expand and accept payments from customers in various countries, which can be essential for their growth.

5. Payouts and Disbursements: Dwolla provides businesses with the ability to facilitate mass payouts and disbursements to multiple recipients, making it ideal for businesses that need to distribute funds to a large number of individuals or entities. Stripe, on the other hand, does not offer built-in support for mass payouts. While businesses can still achieve this functionality through custom development with the Stripe API, Dwolla's native support for mass payouts can be a more straightforward solution.

6. Industry Focus: Dwolla is best suited for certain industries such as crowdfunding, marketplaces, and on-demand marketplaces. It offers specific features and services tailored to these industries' needs. Stripe, on the other hand, caters to a wide range of industries and businesses of all sizes. Its versatility makes it suitable for various business models and allows for more widespread adoption.

In Summary, Dwolla and Stripe differ in terms of pricing and fees, supported payment methods, integration and development options, international support, payout capabilities, and industry focus. Businesses should consider these differences to choose the payment solution that best aligns with their specific needs.