Iowa Government Expands Dwolla Acceptance
States and governments in general aren’t usually the first to do something innovative, especially when it comes to payments.
However, the Iowan darling Dwolla, a mobile and online payment provider, is receiving a huge vote of confidence in its home state.
In early 2013, Dwolla and Iowa partnered up to allow Iowan retailers to pay for cigarette taxes, and was the only online option for payments, in comparison to the cripplingly slow and costly sending a check by mail.
The state must have liked the benefits of the alternative payment network, which include avoiding swipe fees, flat rate pricing, and quicker settlement, since Gov. Terry Branstad announced an expansion of the Dwolla payment option to the Iowa Department of Transportation.
It will allow carriers to pay for their fuel taxes and registration, and this goes on top of the $100 million in annual cigarette taxes that Iowa collects, along with property taxes and vehicle registrations that some Iowan counties accept through Dwolla.
Lt. Governor Kim Reynolds comments in a statement, “Dwolla’s simple payment network brings an effective, innovative means of payment for Iowa taxpayers, while providing increased government efficiency. We’re excited about the state’s expanded use of Dwolla and are continuing to explore new ways to use the payment network.”
And why not?
Dwolla demonstrates that technology can offer a streamlined and cost-saving payment method, which may be attractive to governments in general. Though it appears to be a small victory for alternative payment methods, it’s also a sign that people and governments alike can have confidence in something other than the old ways to pay.