> The other major complication with ACH is that most Americans use credit cards for the credit (70% hold a balance). That is something that won't be solved.

I doubt Dwolla needs to solve this problem to be profitable. I'm pretty sure there are still a very large number of cash and debit transactions occurring daily.

> Others like the benefit of rewards (miles, dollars, whatever).

I've seen this argument raised a few times and I still don't understand it. Couldn't merchants (especially online merchants) discount sales that don't use credit cards? The money saved by not offering rewards has to go somewhere.