Many people are unaware that merchant banks, financial intermediaries, etc. collect a small fee and a percentage of the gross amount of the transaction every time you swipe your card to pay for something. This is huge business for the banks, who make billions of dollars each year from this lucrative practice.

Introducing Dwolla, a startup from Iowa of all places. Dwolla is a payment network that takes $0.25 for each transaction regardless of the gross amount of the transaction. Even better, Dwolla lets you pay your friends through social networks like Facebook or with your phone. Only the receiving party needs a Dwolla account (which is free). With a rugged API, Dwolla has incredible potential to revolutionize the way we pay each other. When you get a chance, check them out at http://www.dwolla.com/.