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Pay Uncle Sam with PayPal and Dwolla

You can now send funds to the federal government using PayPal or Dwolla. The U.S. Department of the Treasury is moving away from paper payments and announced that its digital wallet Pay.gov now offers both PayPal and Dwolla as payment options.

On the Treasury.gov blog, David Lebryk explained that Pay.gov is the government’s secure web-based collection portal for making payments to federal agencies.

“In Fiscal Year 2014, the Fiscal Service collected $3.73 trillion in revenue, processing 400 million transactions. Nearly 98 percent ($3.69 trillion) were electronic transactions,” he said. “The goal of these partnerships is to provide greater choice and convenience to customers who transact business with the Federal Government.”

The Bureau of the Fiscal Service said in an announcement on Thursday, “Digital wallets provide convenience, simplicity, and a trusted customer experience, while achieving cost effectiveness for the Federal Government.”

Dwolla spokesperson Jordan Lampe said the payment service first become available through Pay.gov in late 2014, but was unable to comment on what the company has learned or how much Dwolla has processed in payments through the program.

Dwolla is also working with some states, including its home state of Iowa, which praised the company in this announcement from last year.

Lampe said the types of payments going through state programs include property taxes, DOT (license registration, commercial vehicles licensing and permits), and cigarette sales taxes.

PayPal, meanwhile, has been working with Pay.gov since May 2013 as part of a pilot program.

In its announcement, the Treasury’s Fiscal Service said the goal of the partnerships was to expand the options customers have for transactions with the Federal Government, providing customers greater choice and a better customer experience. “For example,” it wrote, “customers required to submit a court filing fee at a U.S. Court, or citizens who wish to make a donation to the National Endowment of the Arts, will have similar payment options currently available to them on popular private sector websites.”

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.