Veridian Credit Union Goes Live with Dwolla Payments

Veridian Credit Union of Waterloo, Iowa, has begun offering customers mobile and online payments through Dwolla's bank transfer system FiSync, according to a Dwolla spokesman.

The payment method is comparable in cost to an Automated Clearing House transaction, but it moves money in seconds.

For now, Veridian customers will only be able to move money through FiSync into their Dwolla accounts. That will change as more banks sign on to Dwolla allowing bank-to-bank transfers, however.

"What this is doing is taking out the ACH process," says Veridian spokesman Eric Kinman. "The nuts and bolts of what's in it for the consumer, perhaps the merchant, and business customers, is they don't have to wait for the ACH to process their funds."

Since Veridian soft-launched the service earlier this month, several hundred Veridian customers have linked their accounts to Dwolla; some had accounts with Dwolla already. The credit union has roughly 160,000 members.

Dwolla, of Des Moines, Iowa, began developing FiSync last year. In May, it opened FiSync up to more banks and credit unions at the FinovateSpring conference in San Francisco.

In November 2010, The Veridian Group, the service organization unit of Veridian, and TMG, a subsidiary of Affiliates Management Co., provided Dwolla with $1 million in funding.