WePay Raises $10 Million
WePay has raised $10 million from Ignition Partners, Highland Capital Partners, and August Capital. The company launched as a way to help friends and family pool resources. Now they are offering online payment tools for merchants and non-profits.
WePay is aiming to compete against PayPal for SMBs. The advantages they have include ramp up time, fees, setup, and installation. WePay COO and co-founder Rich Aberman said WePay offers “one-stop shop tools to get anyone up and running accepting payments online, the way that they want to accept payments,” in ab interview with Betakit.
WePay charges a flat rate of 3.5% per transaction compared to PayPal’s 2.9% plus $0.30. They charge $0.50 if funds are drawn from a user’s bank account instead of a credit card. WePay is also targeting non-profits by offering a donation page creation tool. They charge the same 3.5% rate that they charge businesses. This is less than competitors like Kickstarter and First Giving.
WePay plans on using the funding to expand their team. Currently they have 40 employees. Mobile is becoming one of their core focus.