Real estate crowdfunding platform Groundfloor announced last week it has formed a new partnership with Dwolla, Inc. to make payments more efficient for borrowers and investors. According to Groundfloor, Dwolla’s white label platform will now help the funding platform’s users initiate the transfer of money to their GROUNDFLOOR account. Returns can vary between 5% and 26%.
Groundfloor then reported to enable payment functionality, its integrated Dwolla’s ACH API to power payments and enable instant bank account verification and next day payments for its end users. The partnership allows Groundfloor to make the payment experience more seamless for its users, allowing people to start investing faster. The technology is also powering Groundfloor’s 2019 Stock Offering, where any account holder can invest in the Fintech company directly by purchasing shares of stock. Speaking about the partnership, Groundfloor CTO, Chris Schmitt, stated:
“It’s always risky changing the engine in flight. The aspect of going live with a new payments partner was where Dwolla really shined. Dwolla helped us convert from our old provider, it was seamless. We can—in real time—authenticate a bank account and get our customers up and running in minutes.”
Founded in 2013, Groundfloor states it opens private capital markets to a broader base of both investors and real estate entrepreneurs. The platform claims to be the first to qualify by the U.S. SEC to offer direct real estate debt investments through Regulation A for non-accreted and accredited investors.
