The Members Group has dropped a small merchant fee from Dwolla, the popular mobile payment platform the payments processing CUSO supports.

The fee was a $0.25 transaction fee on sales of less than $10.00.

Removal of the fee is predicted to be particularly popular among merchants that deal in small-ticket transactions, as well as in-app purchases found in many mobile application, the CUSO said.

“To-date, Dwolla merchants have been willing to pay the quarter, even on micropayments, because they recognized the unique value,” said Brian Day, Dwolla product leader for TMG. “Not only are retailers attracted to the 'wow' factor of mobile payments acceptance; they see the buzz-generating potential of Dwolla's social media interaction. A customer buys a coffee with Dwolla and instantly 150 of his Facebook friends are exposed to the name of the coffee shop.”

No changes in product or service accompany Dwolla's drop of the fee, so merchants will continue to receive the same benefits – now at no cost on small transactions.

“Financial institutions are adding Dwolla to their product mix to attract young, tech-savvy customers who want to make everyday financial transactions quickly and inexpensively,” said Day. “Waiving the fee on micropayments will ultimately attract more merchants to Dwolla. When that happens, more customers will be looking for a simple way to become Dwolla users. We want community financial institutions to be 'that simple way.'”

Dwolla is celebrating the one-year anniversary of its national rollout today.