Dwolla Readies Proximity Payments Tool, Proxi

(Des Moines, Iowa – August 25, 2011) – Dwolla – the online, social, mobile and location-based payment platform supported by The Members Group (TMG) – this week announced plans to release a new tool for users of its mobile application. Aptly named “Proxi,” the tool will allow Dwolla users to exchange funds with people and merchants in their proximity without the need for cash, cards or near field communication (NFC) technology.

“Proxi represents a software solution to mobile payment’s current hardware problem,” said Dwolla Founder Ben Milne in reference to near-field communication, a technology predicted to change the way consumers make point-of-sale transactions. “While we continue to be excited for more development in technologies like NFC, we’re not willing to take a wait-and-see approach. We’re enabling safe, affordable mobile payments right now.”

Along with its peer-to-peer uses, Dwolla sees Proxi as a way for merchants to accept mobile payments without the investment in additional hardware. Milne and his team believe Proxi will become an invaluable tool for mobile merchants, such as farmer’s market vendors or taxi drivers.

After launching Proxi on a smartphone, mobile merchants can broadcast their location, making themselves “visible” to other Proxi users within a specified radius and for a specified amount of time. For instance, a farmer’s market vendor may opt to make his booth visible to Dwolla users within five miles for one hour through Proxi. This will provide potential customers a real-time list of nearby Dwolla-accepting merchants. Payments are easily sent and received by the customer and merchant respectively without the need for additional hardware.

“We anticipate the addition of Proxi will encourage even more financial institutions to see Dwolla as a key to attracting Gen X and Gen Y,” said Brian Day, product development architect for TMG, the company distributing Dwolla to credit unions and community banks. “Members of the younger generation are drawn to the benefits of mobile payments, and the financial institutions who can give them a safe, affordable option will win customers for life.”

Proxi is currently undergoing closed beta testing on the Apple operating system, iOS. Dwolla plans to open the beta test up to all interested users mid-September through the App Store.

About Dwolla

Dwolla is the nation’s only online, mobile, social and location-based cash platform that connects to your social community and location to share and spend money. Using proprietary technology and business partnerships with The Veridian Group and The Members Group, Dwolla allows consumers and organizations to send and receive money from their bank accounts for only 25 cents per transaction, no matter the transfer amount. Unlike traditional payment platforms, Dwolla takes the industry in a new direction by allowing people for the first time to share money with their social networking contacts. Founded in 2009, Dwolla is based in the heart of Silicon Prairie, Des Moines, Iowa. For information about Dwolla and its unique cash platform, please visit www.Dwolla.com.

About TMG

TMG is a wholly-owned subsidiary of the Affiliates Management Company, which is owned by Iowa credit unions and their members. As a financial and credit union service organization (CUSO), TMG is dedicated to providing innovative and flexible card processing and payment solutions to credit unions and financial institutions across North America. TMG’s core products include credit, debit, ATM and a variety of ATIRA-branded prepaid solutions, as well as online reporting, ACH and ALM services. For more information, visit www.TheMembersGroup.com.

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