The problem is at the scale of which Paypal operates. They are huge and the fraud measures in place have not kept up with the needs of the various use cases. Fraud is dependent on the use case and there is no one size fits all. That is why PayPal gets a bad rap for freezing assets and generally being this monolithic entity that keeps bungling up. Dwolla/WePay have to focus on niche use cases and define their markets in terms of how many core use cases they can effectively service. Fragmentation is the only logical conclusion to scale.
I wish I could use WePay. Unfortunately they do not allow Digital Goods, which their customer service department pointed out includes software licenses.
> Paying via WePay is just as easy for your clients and customers
Wrong. For the 200 million more PayPal accountholders vs WePay accountholders, the experience is quite a bit easier.
I believe he was referring to the sign up process, which is just as easy (if not easier). In fact, I often have a very difficult time (as a payer) paying through PayPal with my credit card and not my PayPal account. Sometimes I just don't want PayPal to be a part of all of my transactions. Basically, anything outside of eBay.
Whatever. The whole benefit of PayPal is that almost everyone is already signed up.
How is this any better than Dwolla (or even Bitcoin)?
Because they require quite a bit of setup by the payer, neither are very well suited for many general purpose payment scenarios.