WePay, one of the leading providers of payments as a service for online platforms and marketplaces, has raised $40 million in Series D funding. This latest round will help the company expand its services globally. WePay powers payments for thousands of online platforms, including Care.com, Constant Contact, FreshBooks, GoFundMe and Meetup. WePay protects its partners from risk and regulatory exposure, while supporting a seamless experience for their end-users.
The funding follows another record quarter for WePay. The company delivered a 123% increase in revenue in Q1 compared to the same period one year ago. It also ushered in a 159% increase in users getting paid through platforms like GoFundMe, FreshBooks, and Constant Contact. WePay looks to accelerate the growth by supporting platforms in new geographies.
Lead investor FTV Capital brings extensive domain expertise in payments and enterprise technology to WePay. Rakuten, Japan’s largest ecommerce company and one of the world’s largest online marketplaces, brings the unique perspective of a global marketplace. All existing institutional investors, including Highland Capital Partners, August Capital, Continental Investors and Ignition Partners, participated in this round, which brings WePay’s total financing to $75 million so far.
“Payments are one of the most critical challenges for online platforms, and before WePay they've had to build complex, proprietary systems to facilitate payments,” said Bill Clerico, CEO of WePay, in an official press release. “We built our solution to help platforms and marketplaces facilitate payments, without the accompanying risk and regulatory overhead. We're excited to further invest in our product and global expansion, while leveraging the expertise of domain experts like FTV and Rakuten.”
Over the last five years, ecommerce has shifted from traditional retailers to marketplaces like Airbnb and Uber. Connecting buyers and sellers, however, creates real operational challenges around payments. WePay provides the control and flexibility “platforms” need to seamlessly facilitate payments without the risk, regulatory and operational challenges typically associated with the new marketplace model.
Earlier this year, Google entered a strategic partnership with payment processing company WePay to integrate the Instant Buy APIs into 200,000 ecommerce stores. With this integration, Google Wallet users will be able to pay at more online merchants using its digital wallet service.