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WePay's (YC S09) next chapter

blog.wepay.com

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Re: WePay's (YC S09) next chapter

#21

Post by mbesto »

This is really interesting, because if I understood it correctly, WePay was basically a layer that sat on top of Vantiv's PayFac and made it easier for businesses (SaaS) to take payments on behalf of many merchants. In other words, let's say you setup a SaaS called "GymSAAS" that billed monthly fees (and took cut of each transaction) and your client was "Globo Gym" . GymSAAS could use WePay to collect the money for Globo Gym, take a cut and then pay Globo Gym every month the remaining amount. Using Vantiv's PayFac, it means you skip the tedious process of assigning a new merchant account for Globo Gym as they get underwritten in the industry of "gyms".

So what does this mean for Chase? Do they gut all of the plumbing out with Vantiv and move it over to Paymentec for processing? Does Paymentec even have a PayFac capability built into it?

Re: WePay's (YC S09) next chapter

#22

Post by tommynicholas »

craigkerstiens wrote: post #14

This is a pretty authentic and fairly clear note from an acquisition. It's pretty clear it wasn't the home run that so many set out for when founding a company. I do expect this is a good landing out of this for many, yet now there are new challenges to navigate. Nine years is no short time to labor through, especially when you're taking a giant risk and giving up things that software engineers could easily get in te…

Sources say it's north of a $220m acquisition - I mean I know that's not a home run but I'm also pretty certain it's not a nothing outcome at all.

Re: WePay's (YC S09) next chapter

#24

Post by whitegoodman »

mbesto wrote: post #21

This is really interesting, because if I understood it correctly, WePay was basically a layer that sat on top of Vantiv's PayFac and made it easier for businesses (SaaS) to take payments on behalf of many merchants. In other words, let's say you setup a SaaS called "GymSAAS" that billed monthly fees (and took cut of each transaction) and your client was "Globo Gym" . GymSAAS could use WePay to collect the money for G…

Great question. I'm curious about this, too. My impression from the way they described what it will become ("WePay and its employees will operate as Chase's payments innovation incubator in Silicon Valley") really makes it sound more like an acquihire or something.

Re: WePay's (YC S09) next chapter

#25

Post by joering2 »

mbesto wrote: post #21

This is really interesting, because if I understood it correctly, WePay was basically a layer that sat on top of Vantiv's PayFac and made it easier for businesses (SaaS) to take payments on behalf of many merchants. In other words, let's say you setup a SaaS called "GymSAAS" that billed monthly fees (and took cut of each transaction) and your client was "Globo Gym" . GymSAAS could use WePay to collect the money for G…

No its not. What you describing is called "collusion fraud" and if caught it can land you/your company on MATCH list.

Re: WePay's (YC S09) next chapter

#27

Post by craigkerstiens »

tommynicholas wrote: post #22
craigkerstiens wrote: post #14

This is a pretty authentic and fairly clear note from an acquisition. It's pretty clear it wasn't the home run that so many set out for when founding a company. I do expect this is a good landing out of this for many, yet now there are new challenges to navigate. Nine years is no short time to labor through, especially when you're taking a giant risk and giving up things that software engineers could easily get in te…

Sources say it's north of a $220m acquisition - I mean I know that's not a home run but I'm also pretty certain it's not a nothing outcome at all.

That is a solid outcome, but with nearly 80m (publicly) raised, likely not a giant return based on those numbers and length of company existing. Some may have done quite well, but plenty of unclear details. There are many notable home-runs for all players involved, FB, Whatsapp, etc, but those are often the exception.

This isn't to say it's a bad acquisition or should be dismissed as a failure. It just re-iterates that it's not all easy, glory, and success.

I do hope for the team involved it worked out just as they'd hoped, but from their post it feels like many hard years and more of a next chapter than the end. Best of luck to them all in the future.

Re: WePay's (YC S09) next chapter

#28

Post by [deleted] »

craigkerstiens wrote: post #27
tommynicholas wrote: post #22

Earlier quoted context omitted.

Sources say it's north of a $220m acquisition - I mean I know that's not a home run but I'm also pretty certain it's not a nothing outcome at all.

That is a solid outcome, but with nearly 80m (publicly) raised, likely not a giant return based on those numbers and length of company existing. Some may have done quite well, but plenty of unclear details. There are many notable home-runs for all players involved, FB, Whatsapp, etc, but those are often the exception. This isn't to say it's a bad acquisition or should be dismissed as a failure. It just re-iterates th…

[deleted]

Re: WePay's (YC S09) next chapter

#30

Post by austenallred »

craigkerstiens wrote: post #27
tommynicholas wrote: post #22

Earlier quoted context omitted.

Sources say it's north of a $220m acquisition - I mean I know that's not a home run but I'm also pretty certain it's not a nothing outcome at all.

That is a solid outcome, but with nearly 80m (publicly) raised, likely not a giant return based on those numbers and length of company existing. Some may have done quite well, but plenty of unclear details. There are many notable home-runs for all players involved, FB, Whatsapp, etc, but those are often the exception. This isn't to say it's a bad acquisition or should be dismissed as a failure. It just re-iterates th…

A $220m+ acquisition is absolutely a home run, and likely a win for all involved, even with $80m raised.

FB and WhatsApp are once-in-a-decade type returns. In baseball parlance perhaps a World Series winning grand slam or a perfect game. You needn’t exit for $19B for it to be a great outcome.

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