The BBVA Compass bank has connected its real-time banking platform to Dwolla, enabling customers to make real-time payments through the Iowa startup's payments network. BBVA Compass is the largest bank so far  to partner with Dwolla.

Dwolla payment system 

Dwolla is a new payment system whose mission is to, “Allow anyone [or anything] connected to the internet to move money quickly, safely & at the lowest cost possible.” They claim that Dwolla is the best way to move money as there:

• are no percentages and no hidden fees
• is just 25¢ per transaction
• is no charge for transactions of $10 or less.

The fee differences are stunning. To receive a $5,000 payment via:

• Dwolla - $0.25
• Check - $7.15
• Square - $137
• PayPal - $145.30
• Stripe - $145.30
• Average Credit Card - $50 – $150 

However, in Dwolla it can take up to three days for transactions to clear in non-user bank accounts, and up to four days for B2B transactions.

Combining real-time banking and real-time payment systems 

In the first stage of the latest agreement, the BBVA Compass will use Dwolla’s FiSync protocol to move funds for BBVA Compass customers to anyone through Dwolla's real-time network. Transactions over $10 will incur a flat fee of 25 cents and will be free for smaller value amounts. 

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CTMfile take: The combination of real-time banking and the new payment systems, such as Dwolla, is compelling. In the long run, it will be the future of banking and payment systems.