WePay doesn’t think it will succeed in the online payments industry by attracting consumers.
Many other payments companies, like PayPal, have centered on everyday consumers to generate revenue. That WePay is deliberately ignoring them might consumers as a surprise — but by centering on the next generation of businesses, the company is positioning itself to work with firms that will likely book a lot more revenue digitally, rather than in cash.
WePay is tacking on another $US40 million in funding, the company is announcing Wednesday. The investment will more than double its capital raised with the help of investors led by FTV Capital and including investors like Rakuten and August Capital, to name a few.
Partnering with Rakuten could help WePay in a big way. Rakuten has stepped up its activity in Silicon Valley through investments including Pinterest and Lyft. Currently, Lyft depends on Stripe for transaction processing — but, Rakuten is an investor. Having a VC on board is always helpful to build in-roads for new clients.