Dwolla Raises $5 Million in Venture Funding

Alternative payments provider Dwolla Corp. has raised $5 million from a group of investors led by Union Square Ventures.

Other investors for the Series B round of financing included Thrive Capital, Village Ventures, Marc Ecko and Paige Craig, the Business Insider reported on Tuesday. Albert Wenger, a managing partner at Union Square Ventures, will join the board, the website reported.

Through Dwolla, users can send money to others via social networks and pay for items with their telephones. The company charges a flat fee of 25 cents per transaction and transactions of less than $10 are free.

In July the company, based in Des Moines, Iowa, said that it was processing $1 million a day in mobile payments.