Payments service Dwolla Hits $1 million transactions a week

Payment platform Dwolla is celebrating an important milestone this week; Hitting almost 1 million a week in payments on the service. This is rapid growth, as six months ago the startup was completing $50,000 in transactions a week. Only three months ago, it hit the $1 million transactions a month mark.

Co-founder Ben Milne says that this is notable because it was only a little over a year and a half ago that billion dollar startup Square crossed the exact same “$1 million a week” milestone.

With 20,000 users currently, Dwolla provides a free web based software platform which allows users to exchange funds with any other Dwolla user. Users who receive funds are charged 25 cents, versus PayPal’s 30 cents.

The company recently released their FiSync feature, and has thus far hooked up with 11 banks to provide the service to another potential 600,000 users. In addition Dwolla recently launched GRID, allowing third party platforms like Google Wallet and Mint to potentially access its API as well as Spots, a payments feature based on location checkins.

Co-founder Ben Milne writes, ” I can say this with a straight smile on my face, ‘Thank you Google.’ Since the announcement of the Google Wallet, we’ve seen outstanding interest and excitement in our cash-based network from merchants wanting to adopt our low-cost mobile payment platform. “

The payments space is definitely heating up.