Dwolla doesn't let you take credit cards. People buy things online with credit cards.

It's also inappropriate for the flow this app wants. You click a link, enter your CC#, get your content. Takes 5 seconds.

With Dwolla: click a link, sent to Dwolla, create a username, password and PIN, add an address, wait to receive a phone call or SMS, click a link in a verification mail, add your bank account, wait 2-3 days to verify your bank account, go back to the site and finish your payment...

You only need to that the first time. Once you have it set up it's just as fast and way cheaper for both merchants and buyers. There are plenty of payment services that take a percentage cut, Dwolla is the only one that doesn't.

That's not true. There are lots of flat rate ACH payment processing companies, just like Dwolla. Your utility companies probably use them, for example. Almost any company that lets you pay your bill by providing your bank account details is using one.

Being paid by ACH through PayPal is free and has been free for the past 13 years. PayPal only charges once you upgrade to a Premiere or Businesss account, which is what allows an account to accept credit card payments. It also lets you pay someone having to deposit money in advance like Dwolla -- PayPal calls these payments eChecks. The merchant is notified immediately about the payment then again when the transfer clears.