Dwolla and Microsoft Team Up to Disrupt Government Payments Space

Dwolla and Microsoft have announced a partnership to transform the way governments carry out payments.

The two leading establishments aim to modernize government payments systems in the U.S. by replacing traditional transaction methods and implementing new digital processes.

Disrupting the government payments space is no easy task. Slow processing times, erroneous transactions, and costly services fees contribute to the negative reputation of administrative payments operations. Current government payments systems are unable to cater to the growing population and the increasing demand of today’s businesses.

Through the Azure Government platform, an advanced cloud-based solution, Dwolla plans to rollout secure, low-cost payments options that are accessible on local, state and federal levels. The company provides a wide range of free tools for developers, from easy-to-use form builders to APIs and SDKs, which can be customized to suit the needs of various departments.

Dwolla has had several successes in helping governments improve their payment workflows. The Iowa Department of Revenue and Iowa Department of Motor Vehicles have both transitioned away from tedious, manual operations with the help of the company’s products and services.

Microsoft’s essential role in the collaboration strongly revolves around infrastructure.

Meeting government standards, requirements, and regulations cannot be done through basic hosting services. Because of this, a new platform had to be created, i.e. Azure Government. Agencies and departments using the platform benefit from multiple authentication protocols, world-class security, and flexible development features.

The implementation of simplified electronic processes has been proven to drastically reduce fees associated with credit and debit card transactions. Dwolla’s services offer minimal transaction costs for taxpayers, never going over 25 cents. From a long-term perspective, such solutions are effective in lowering upkeep and maintenance costs.

Governments from other countries that have reported massive savings from electronic payments include Mexico, Australia, and India.