GoDaddy, a web hosting provider, has designed an online invoicing system using the alternative payment company Dwolla's network application programming interface (API) and services.

GoDaddy's goal is to give its small-business clients a way to send and receive funds electronically instead of relying on checks.

"Using paper checks to pay for goods and services is time-consuming, costly and incompatible with the 21st century small business," says GoDaddy in a press statement. "The new solution will allow small businesses to have greater cash flow visibility and control and is significantly cheaper than using PayPal."

Dwolla, which is based in Des Moines, Iowa, offers a flat fee of 25 cents per transaction. 

Small-business clients and the recipients of their invoices don't need to open a Dwolla account to use the new service. Dwolla's Guest Checkout option enables a one-time payment from an existing bank account. 

"It replicates the universality and comfortability of what makes check issuance and acceptance so easy," says Jordan Lampe, communications head at Dwolla, in a blog post. 

GoDaddy created the new feature independent of Dwolla's oversight. GoDaddy has more than 12 million small business customers. 

"The partnership also speaks to a larger trend in the tech industry--the importance of providing the best tech tools to not just large and medium enterprises, but to those solopreneurs running our favorite local businesses," GoDaddy says. 

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