With the development of the JOBS Act, a new era of platforms built around crowdfunding investments has blossomed. In short, and very high-level, the JOBS Act has made securing investments from individually accredited investors more attainable. Therefore, we’ve seen an explosion of platforms built around the idea that individual investors can now get in on exciting new projects, ranging from everything from solar power installations to commercial real estate developments. Not only beneficial to the individual investors being able to add to and diversify their investing portfolios, but also to the project developers who now have access to a deeper and more diverse pool of investors.
However, building investment platforms that operate via crowdfunding and being able to disburse returns back to the individual investors on a regular schedule is no joke. Just as in any industry that is built around finance, there are many regulations and requirements that these platforms have to be knowledgeable of. On top of building these leading edge platforms, the founders have to be wary of how they will be facilitating payments through their interface. Credit card networks and some payment providers charge high per transaction fees on each transaction, which can get costly when facilitating high dollar investment amounts. They also may not help mitigate some of the compliance requirements imposed on those that facilitate ACH payments through their platform.
Marketplaces that have been built around the crowdfunding model for fulfilling financial and development projects have been turning to Dwolla’s White Label bank transfer API for facilitating ACH transfers within their interface. Dwolla does not charge a per transaction fee, instead opting to work with you on a flat monthly rate that makes sense for you and your use case.
From linking and verifying a user’s bank account to facilitating ACH transfers across your platform, Dwolla’s White Label bank transfer API allows you to design your ideal user experience. But don’t just take our word for it, learn more from some of the companies that we’ve worked with on our blog. Ready to get the conversation started? Reach out to us below.
Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.