While we do have carried balances, which is stored by our other investors (non-interest baring), The Veridian Group, we do differ from PayPal on several fronts (disclaimer: PR messaging, sorry).

1.) Low-cost, flat fee of 25 cents 2.) Social integration (with Facebook and Twitter) for p2p transfers 3.) Location-based payments (see Dwolla Spots) 4.) FiSync, our financial services product(see TechCrunch coverage here: http://techcrunch.com/2011/03/25/dwollas-fisync-lets-you-ins... 5.) And now Grid (which theoretically could allow us to be a loading mechanism for PayPal)