Is Stripe's payment platform better than Dwolla's payment platform for developers?

Mark Fischer

Mark Fischer, PDG d’Inspire Commerce (2008-présent)

Répondu il y a 346w

Je pense que Petersberg did a great job answering this question. I would just add a few key points here.

The API's themselves:
I've worked with both API's extensively in the InspirePay project, and as such can say both are very developer friendly. Bottom line, both companies are built by modern developers for modern developers. If you want other suggestions, our API's are sweet: as are Brain Tree's.

Les services:
I truly believe your question is more about the companies and related services and less about the technical API's. So I'm going to talk about the difference between the two companies, and compare them to a traditional merchant service provider.

I'm in love with the team at Dwolla - their vision, roadmap, and culture. They are building an amazing payment network, empowering direct bank account to bank account payments. The up side... cheap and fast. The down side... both parties must be members of the network (fyi, this is actually a benefit once you start using the system because it reduces fraud and chargebacks, but is a major hurdle to be overcome when trying to sell products online to the general public if this is the only payment method used). In my office, we call this a closed loop system... both parties, the one receiving and the one paying, must be part of the network.

Stripe is a killer platform, and their support via the chat room is awesome. Their API is clean, and account setup is very easy compared to a traditional merchant account. Likewise, their fee structure is crystal clear... 2.9% + 30c. This makes it very easy for budgeting fees, and you know they will charge you exactly this amount. Funding is roughly one week from transaction until it hits your bank account. Stripe's biggest gift to the world as I see it, is that with Stripe, anyone can become a merchant that accepts credit cards online with no monthly overhead and no additional PCI compliance fees. We've been sending many accounts to them (I think 115 since we launched InspirePay in late December).

Traditional Merchant Account:
For anyone transacting over $2000 per month, I would très suggest working with a reputable merchant service provider with a powerful gateway. For example, with us at Inspire Commerce, funding is next day as apposed to one week... the gateway allows for card storage and decryption, and also allows for more complex merchant scenarios like multiple DBA names in a single gateway instance. Beyond this, because the account is actually underwritten by a bank in detail, the potential for funds to be held, sat on, etc. is greatly reduced. A merchant account also shows up on your credit score, and helps increase corporate credit. If you are working with a reputable company and you are transacting over $3K, you should be able to save money over Paypal or Stripe.

Final Thoughts:
In the world of ecommerce, there have been studies about paypal and conversion rate. I mention this because it will shed light on your question above. If you only have Paypal, statistically you will see far fewer sales than if you only have a merchant account (I've seen reports as high as 40% difference). If you add in Paypal to a merchant account, statistically there is a 15% - 18% increase in sales. The message here is that customers want payment options (and people have strong feelings about PayPal). If I were to build the worlds most killer transactional app, and I wanted to maximize sales, I would include all three... Credit Cards, Paypal, and Dwolla. Kind of like this: . Let the people decide how they want to pay. That said, I truly believe everyone should make Dwolla available in every app, and customers should be made aware of the fact that it's in everyone's best interest to use Dwolla because the fees are SO much lower. No, this is not a paid endorsement for Dwolla. I'm just saying, when you are moving money, 2.9% is a lot. Heck, pure interchange at 1.85% is a TON of money (that's the wholesale cost of moving money online via Visa's cheapest e-commerce tier). For sure offer Dwolla. But you also need a way to accept credit cards or you're going to loose most of your customers until Dwolla gains wider adoption. Stripe is an awesome choice as is working with a reputable merchant services provider.

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Petersberg, travaille chez Visa

Répondu il y a 346w · Voté par

Ambre Feng, travaille chez Stripe · L'auteur a des réponses 75 et des vues de réponse 724.7k

You're comparing apples & oranges with Stripe and Dwolla. It seems you're interested in what's better for developers, but I think you first need to define what functionality you -- and more importantly, your customers -- require.

In a sentence, Dwolla primarily does ACH transfers and Stripe does card (credit/debit) payments. There are several big differences between the two.

The first things to ask yourself are:

  • What am I selling? Is this a big ticket item (e.g. flatscreen TV), a subscription, Bitcoin newsletter, or an optional donation button on a blog?
  • Who is my customer and how do they like to pay? Are we talking other developers, or middle-aged housewives? And that "how they like to pay" part is crucial.

Rayure is built for accepting les paiements par carte. So if most of your customers are going to want to pay with credit or debit, and you want to capture funds (almost) immediately, then taking card payments makes a lot of sense. Also, keep in mind that credit/debit cards are nearly ubiquitous (in the US at least), so virtually all of your customers are going to have one. Plus, people are used to putting in credit/debit card information for online purchases and billing. (Note: Stripe recently added subscription functionality, too)

Caveats: it's USD ($)-only for now, and you can only receive funds into a US corporation.

Dwolla, on the other hand, does not do card payments. They have some cool technology to do money transfers, but at the end of the day an account is still funded via ACH (for now). Dwolla has recently rolled out a credit product (Dwolla Instant) as well, but there are limits (~$500) on total credit line.

If you choose Dwolla, you're basically introducing a new acceptance mark, which is really hard to get people to adopt (e.g. those logos you see at checkout - Visa, MasterCard, PayPal, etc). If you are selling lower ticket items and are reasonably confident that most of your customers are already Dwolla users (and really, you better be sure), then it might be a good option for you

Keep in mind, however, that if you select Dwolla as your uniquement. payment method, and your customer does not already have a Dwolla account, the customer will need to sign up for the Dwolla service before they can buy anything from you. If there's one way to kill a sale, it's to introduce friction into the checkout flow. Ask yourself how likely it really is for a (non-Dwolla-using) customer to go sign up for some new service they probably never have heard of, link their bank account (!), wait 2 business days to fund their Dwolla account, and then return to your site to complete their purchase. If you don't already know the answer (and you should), I can tell you: unless you're selling the most addictive substance on earth, it's effectively zero.

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On Developers...
Now that we've covered some critical differences in payment methods, let's go back to your original question of what's better for developers...

Stripe's API is lovely and they make it very simple to sign up and start using the service. I've heard good things from my friends who use it from a pure technical integration perspective.

Dwolla's APIs might not be as pretty as Stripe, but it, too, has found a popular audience among developers, and Ben Milne, who built Dwolla, is a developer himself, so he understands the developer mindset. He's also a nice guy and from what I hear anecdotally, the support is great.

Ultimately, I think you'll have a pleasant experience integrating either solution from a technical perspective, so that wouldn't be my primary concern. Instead, I would FOCUS ON THE CUSTOMER, because they're the ones paying you.

If you want, use both and let the customer pick. Then you can see which service makes the most sense for you.

Disclosure: at the time of this writing, I work for Visa. The views above are my own, and not those of Visa. Moreover, I don't have any interest in influencing your choice of payment method, beyond the fact that I think it really needs to be dictated by consumer preference.

Mariah K. Young

Mariah K. Young, travaille à Dwolla

Mise à jour il y a 36w · L'auteur dispose de réponses 62 et de vues de réponses 95.8k

This question was posted a while back, and Dwolla has made significant API changes since. For those interested in an ACH paiements integration, definitely take a look at Dwolla (maybe even think about offering alongside Stripe since they serve different needs).

Here are some highlights/corrections:

Bottom line: Dwolla ♥s developers so much so that we surveyed, interviewed, dug deep and redid our entire dev portal (here's the blog post on how).

Full disclosure: I work for Dwolla. Feel free to reach out.

Russell Merritt

Russell Merritt, Consultant for online businesses

Mise à jour il y a 67w

Stripe's payment is better because this payment platform is built for accepting card payment unlike Dwolla. As a consultant, I would recommend some platforms with a good payment system for your business, for example, Shopify.

Shopify provides a ready-to-use hosted solution with 14-day free trial for its users, which means that all security, payment, and hosting issues are taken care of. All you need to get your own online store is just register on the Shopify official website, but because it is the hosted and proprietary solution, you are not able to add some custom elements. Magento - it supports. You manage multiple websites, integrate Google's website optimizer and over 50 payment gateways. Magento is great but it heavy and complicated, not good for beginer to discover eCommerce. Another option, check out ShopingCart|Elite.

Their solution is packed with powerful features, and they offer full marketplace sync for selling on Amazon, eBay etc. They’re easily scalable with affordable packages. The only thing about their platform is it can be a little overwhelming at first. I’ve had experienced with many carts, and ShopingCart/Elite has the most comprehensive and practical tools but having so much. You will need some time to get used to it all. However, after you dive in and get your hands dirty. You will find it is the best in class. I hope I will help you.

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Disclosure: I am a consultant for online businesses and have reviewed this platform.

Faisal Khan

Faisal Khan, PDG de Faisal Khan & Company (2011-présent)

Mise à jour il y a 228w · L'auteur dispose de réponses 5.4k et de vues de réponses 16.5m

Stripe is a really cool/good product, but the whole 2.9% + US$0.30 is a turn off to many. What makes PayPal look so bad? Same reason (along with crap customer service). This is where Dwolla excels (IMHO). The ACH model is just so lovable. Stripe in my perspective is just another third-party payment provider (albeit a very successul one). Venmo is not quite an alternative yet, but I wouldn't be surprised if they start competing in the same space for web payments.

Stripe's documentation is pretty decent as is Dwolla's. However Dwolla is limited to its own eco-system, whilst Stripe is not, so there is an inherent advantage Stripe has over there (vis-a-vis Dwolla).

If the 2.9% charge is not a major put-off for you, Stripe is definitely recommended over anything else that I see in the market currently. Between Dwolla and Stripe, Stripe's tutorials and code libraries, etc. can get you started ASAP. It really is like you cited, "super-easy".

Paypal is an alternative, but the customer service and bad holds that PayPal is so infamous for just makes one think 10 times before actually implementing it. As far as card/payment acceptance is - between PayPal and Stripe, there is hardly any difference other than settlement. Stripe's settlement is 2 days later, whilst in the case of PayPal it is instant.

John Dennehy

John Dennehy,, a better way to hire and be hired

Répondu il y a 346w

We've been using Stripe since last November. It's really easy to use. Does what it says on the tin and was super fast to setup. We haven't had any problems. Overall, a really positive experience.

Huge drawback for anybody outside the US - it only works in US$ and you can only remit funds to a US corp. Apparently they're working on international/multi currency support. Hopefully that's where some of the recent VC money is going.

The fee structure on Dwolla looks pretty attractive. What would be really useful here would be some genuine arms length customer feedback.

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