Dwolla is slowly but surely working towards its goal of bypassing the credit card system for consumers and retailers. The online payment system helps people to move their cash around at the click of a mouse or tap of a smartphone button. The two most appealing factors of Dwolla are that users can transfer funds in real time without paying over the odds transaction fees. Now though, the online payment company have gone one step further by offering Dwolla Credit to its customers.

Ditch Credit Cards With Dwolla Credit

Dwolla Credit is a lot like the financial credit you would expect from any credit card company only no credit card is used. Users will simply have an allotted amount of money available to them which is accessible through Dwolla. Dwolla Credit can be used by consumers to pay for goods in the ecommerce community, B2B or even peer to peer. The additional sum can be used for any reason and paid to any other Dwolla user. The fees will be just as the Dwolla Cash service; no fee for transactions under $10 and a standard fee of $0.25 for anything over.

In order to achieve a trusted, secure credit system that works for everyone, Dwolla has partnered with Alliance Data Systems Corporation (ADS). ADS is a provider of many branded credit card programs and will be using their expertise in this area to conduct all the necessary procedures that you would expect from a credit provider. Users will be assessed and approved in the normal way with ADS setting the credit limit, APR and settling any disputes etc.

Online retailers will be able to choose how they would like to integrate the Dwolla Credit option on their websites through either plug-ins or customized checkout options. To begin with, over 40 businesses who use Dwolla at the moment will go on to utilize the Dwolla Credit system as part of the beta test process. Dwolla expects to roll out the full scale Dwolla Credit to consumers in 2014.

[Image via mashable]