The fintech startup Dharma is launching a new system that allows Twitter users to accept payments in US dollars.
The peer-to-peer platform touts its solution as a way for people on Twitter to receive tips and micropayments easily and without fees. In addition, Dharma says money stored in its wallet earns an APR of 3.6%.
“Introducing social payments – a Twitter-native financial ecosystem. Today, you can send USD to any Twitter handle, regardless of where that person lives — even if they don’t have a Dharma account. Now every Twitter handle accepts (and earns interest on!) payments.”
To send money to a user on Twitter, Dharma says its customers must first deposit funds into their Dharma wallet app.
Then a user will enter the recipient’s Twitter handle in the app in order to designate the funds. That triggers an automatic tweet alerting the recipient that they have received money.
The tweet includes a link that recipients can click in order to create a Dharma account to accept the payment.
Dharma has received funding from a number of crypto and blockchain venture funds. In February of 2019, the company completed a $7-million round that saw participation from Ripple, Coinbase Ventures and Polychain Capital, among others.