He also wrote, “Using the Internet, we've also been able to re­imagine security, transparency and privacy for consumers.”

But, stated Milne, an end to what has been called Net Neutrality – where all Internet traffic is created equally – threatens innovation.

“The FCC's proposal would harm innovation, as emerging payments processors will be unable to compete purely on the merits of their innovations,” the Dwolla founder wrote.

Milne also argued that ending Net Neutrality would have an unintended consequence regarding fraud. “Handcuffing the latency and bandwidth of data will only limit the ability of payment networks to combat consumer fraud,” he wrote.

That's because fast Internet exchange of information, regarding criminals and transactions, may be key to winning the fight against cyber fraud.

Consumers, argued Milne, would be obvious losers if Net Neutrality ended. “Even if all payment processors could afford to pay for 'fast lane' quality of service, these payments would force the industry to add new fees on all transactions to cover the costs of paying for access to the fast lane,” he wrote. “Such fees would make it very difficult to drive costs down in the payments industry and will ultimately pass a greater burden along to the consumer.”

Milne's concluding argument: “The proposal will negatively impact the market for payments processing by quelling innovation among small businesses in all sectors. Indeed, as we drive down the cost for payments, we can serve more and more smaller businesses offering low­ margin and low­ cost goods (both virtual and real) that have not yet had affordable payments options.”

Funds in a Dwolla account are held in a pooled account at the $2.5 billion Veridian Credit Union in Waterloo, Iowa.