The online payments industry is maturing at a rate of knots and continues to grow worldwide rapidly. The ever-evolving industry driven by increasing internet use and online shopping brings a dozen new players in the market every other day. There are basically tons of platforms out there that let you perform online transactions, directing you through PayPal or eBay.
On Wednesday a Silicon Valley payments company, announced a new virtual product called ‘WePay Clear’, which poses a direct threat to PayPal. The product facilitates businesses to accept and process credit card payments through a “white label” process which as a matter of fact may be the cause of it.
The startup known as WePay still in its infancy enables users to conduct monetary transactions through a safe and easy mode. It calls itself a “consumer-friendly” version of PayPal. WePay is notoriously famous for propping PayPal’s developer conference in San Francisco with a gigantic 600 pounds block of ice with hundreds of dollars trapped underneath. It received accolades from PayPal users frustrated by account freeze issues for its act online and during the conference. The startup called out to each and every attendee at the conference saying “PayPal freeze your accounts”.
Speaking of its product portfolio, it provides a hoard of platforms including crowdfunding sites, marketplaces, and small business software with the basic necessities that smoothens the path of online payments.
The newly launched product, WePay Clear, let’s merchants accept credit card payments directly through their websites, instead of directing them to other avenues such as PayPal page. It’s white label feature allows business owners to maintain their branding through the entire sales process.
“Most online platforms have an excellent user experience, but when it comes to enabling users to accept payments, they fall flat,” Bill Clerico, chief executive of WePay said in a release. “The problem is they are forced to share their users with payment providers and rely on someone else’s interface.
Although its service isn’t completely original (Strip and Braintree are two startups with a similar product), it seems to go beyond the ordinary by offering more considerable fraud and chargeback protection through a restrictive risk engine that screens transactions from strange activities. Credit card fraud costs U.S. retailers an astounding $3 billion annually, which makes WePay Clear even more alluring to general platforms.
The services by these startup, offers a more savvy option to bank trading services, which likewise permit online organizations to accept credit cards and give access to payment gateways, however, such transactions tend to be more costly. What makes it even more attractive to businesses who are more concerned with their brand image is that, it can be easily incorporated on the websites and mobile applications.
Clerico argues that payment portals often leave the users confused due to ‘disjoined’ overall experience, while WePay Clear focuses on rather providing a white-label solution which is easy to embed and is user-friendly.
Presently, WePlay Clear is being tested by FreshBooks, a Canadian cloud-based accounting services firm. According to Mike McDerment, co-founder and CEO, “Making payments simple and easy-to-use is an important part of our customer experience. WePay Clear removes the complexity of payment processing which enables us to design a payments experience that is purpose-built for service-based small business owners.”
WePay is currently available in the U.S. only, but according to a WePay comment on popular online community Reddit, it will soon enter Canada and UK markets. WePay received $15 million from Discover Card, eBay and PayPal in a funding round earlier this year.