Founded in 2008, WePay has become a leader in online payment processing. The company has evolved from collecting money for informal group payments to serving small businesses, nonprofits, and crowdfunding portals. WePay’s commitment to strengthen partner relationships and to constantly improve their system has helped them grow rapidly.
Over the past few years, WePay has been able to increase its presence in the crowdfunding market. Beginning in 2010, several crowdfunding sites, including Launcht, approached WePay in order to process payments. Existing systems were inefficient and aggregated payments through merchant accounts. This created major compliance issues as payments were being split up in the back end. Crowdfunding platforms were therefore responsible for all of the chargebacks. In order to increase operational efficiency, platforms looked to WePay to set up secure accounts quickly. Launcht was one of the first few crowdfunding platforms to partner with WePay; now, the API processes payments for over 10 major crowdfunding platforms.
According to Tyler Gaffney, head of sales and marketing of the company, WePay hopes to continue to increase their presence in the crowdfunding industry, particularly in light of the coming changes in equity crowdfunding regulation. This past year, Paypal and Amazon announced that they would no longer process payments for crowdfunding platforms because of the risks associated with distribution of funds. WePay, however, argues that these sites are not putting faith into the platform itself. Risk can be mitigated by working with the platform directly to ensure that campaigns on the site are credible.
WePay’s strategy is to make payments as simple and easy as possible. While their main focus has been on small businesses, their payment processing system has also been a great fit for crowdfunding platforms and nonprofits. By striving to be the best at payment systems, WePay will be able to build traction and attract clients from all of these respective sectors.