and what do i do? >> basically, i just select the location, type in how much i owe them and hit pay, they confirm that i paid, and the transaction is over. >> that's it? >> that's it. no cards, no cash, no nothing, just all based on the internet. >> reporter: the target is not just paper money, but more specifically, credit cards that charge percentages on every dollar of every purchase, tens of billions paid by merchants and consumers alike. other companies are trying to undercut that system, which milne has always found disturbing. >> we work very hard for our money, and when we exchange it with someone else who has worked very hard to receive that money, it shouldn't just get siphoned off to some third party. >> reporter: dwolla's alternative, quick, electronic cash transfers on the cheap. there's no fee for any purchase under $10, and over $10, the fee is a flat 25 cents, that's all. the state of iowa likes it so much, they've signed up this year to let dwolla handle tax payments. >> we also have consumers and