Providing a similar service as PayPal – with a focus on groups instead of just individuals – is the purpose of the WePay web-based payment platform. WePay raised $1,650,000 of first round financing just two years ago when the service was an invitation-only beta test. The company raised an additional $7,500,000 in the summer of 2010.
The co-founders of WePay started in Boston but later moved to Menlo Park, California. Among the angel investors in the company’s first round of funding was the former chief technology officer of Intuit. Subsequent investors included YouTube founder Steve Chen and PayPal co-founder Max Levchin.
The payment tool of WePay is designed specifically to handle funds for groups such as professional organizations, associations, and clubs. The platform provides a transparent way to receive and disburse money along with a means to send bills. All transactions and bills are electronically submitted in a similar manner as any online banking channel.
WePay also benefits groups as small as roommates. Funds are collected and controlled for payment of shared expenses. There are no setup fees, ongoing monthly fees, or contracts to sign. WePay allows users to pay as little as 50 cents per payment for accepting only ACH and WePay account balances. Another fee structure charges 3.5 percent of the transaction but allows for credit card payments and acceptance of funds from non-members, including ticket sales.
WePay service is now in full swing providing payment collection services to several large groups. In just over a year since opening its services to the public, WePay is reporting 70 percent monthly revenue growth. The company’s team and its marketing efforts continue to expand. WePay is not only an alternative to PayPal. The company’s system is also ideal for handling combined funds to pay for anything from a group-vacation to a bachelor party.