{"id":3830,"date":"2017-11-15T17:11:12","date_gmt":"2017-11-15T17:11:12","guid":{"rendered":"https:\/\/www.paymentfacilitator.com\/?p=3830"},"modified":"2022-02-24T22:14:42","modified_gmt":"2022-02-24T22:14:42","slug":"wepay-on-chase-acquisition-the-same-only-better","status":"publish","type":"post","link":"http:\/\/infinicept.com\/payment-facilitator\/archive\/wepay-on-chase-acquisition-the-same-only-better\/","title":{"rendered":"WePay on Chase Acquisition: \u201cThe Same, Only Better\u201d"},"content":{"rendered":"

As WePay Chief Strategy Officer Rich Aberman sees it, there are two primary types of acquisition plays in the payments industry.<\/strong><\/p>\n

First, there\u2019s the kind where one payments company buys another payments company and rolls it into an existing business, for the boost in revenue or transaction volume.<\/strong><\/p>\n

Then, there\u2019s what Chase is doing with its plans to buy WePay.<\/strong><\/p>\n

\u201cChase is looking to where they think the market\u2019s going to go, thinking about payments as a strategic play \u2013 not just for acquiring, but for other financial services \u2013 and they are buying a technology and a team to really do something disruptive and transformative over the next 5 to 10 years,\u201d Aberman told PaymentFacilitator.com.<\/p>\n

\u201cI think there’s a certain patience and strategic foresight they have brought to the table in wanting to acquire WePay and how they’re allowing us to continue operating independently and protecting what makes us special.\u201d<\/p>\n

According to Aberman, who is also a co-founder of WePay, that foresight involves a shift in how merchants, particularly small ones, receive their financial services. He believes that more and more, businesses will look to integrate more of their financial services \u2013 not just payments \u2013 through the software they\u2019re using to manage their business.<\/p>\n

ISVs and their deep knowledge of the customers they serve have changed payments, opening the door for the disruptive approach of payment facilitators. Aberman said he believes that smart approach to risk management \u2013 when a provider has a relationship with a business that enables them to understand how it is operating before providing services, as opposed to offering the service cold through a bank channel, will expand to other financial services such as lending and business banking.<\/p>\n

\u201cThe reality is that we’ve already underwritten this business, we know their identity, we know how their business is performing. So that software is the best place to provide them with financial services,\u201d he said.<\/p>\n

But being that type of provider requires not only the technological expertise to build the solution, but also a \u201ccertain DNA, of tactical nimbleness and talent,\u201d he said.<\/p>\n

\u201cI think Chase kind of looks at where they are, in a market-leading position, but also looks at where the puck is going, and knows that, to compete there, they need a different approach to technology and risk management,\u201d he said.<\/p>\n

Aberman said that Chase intends to allow WePay to operate as a subsidiary, an autonomous unit that will continue providing the same services with the same vision it already has, only with the resources to go farther, faster.<\/p>\n

From WePay\u2019s point of view, Aberman said, Chase\u2019s ability to invest in WePay\u2019s business will help enable the company to double in size over the next year. The tight connection with a major bank also offers the company deeper access to banking services it already depends on, such as its relationship with the card brands.<\/p>\n

Ultimately, he said he doesn\u2019t sees the deal as changing what WePay does, but instead serving to fuel it.<\/p>\n

\u201cOur mission, our vision and our strategy aren\u2019t changing, we’re just bringing on a lot more capital and a lot more advantages that the bank brings to bear,\u201d he said.<\/p>\n

\u201cSo, for our partners and our future partners, these software platforms and ISVs that are looking to integrate payments, we’re going to be a better version of what WePay has always been.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

As WePay Chief Strategy Officer Rich Aberman sees it, there are two primary types of acquisition plays in the payments industry.<\/p>\n

First, there\u2019s the kind where one payments company buys another payments company and rolls it into an existing business, for the boost in revenue or transaction volume.<\/p>\n

Then, there\u2019s what Chase is doing with its plans to buy WePay.<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1015],"tags":[20,164,973],"class_list":["post-3830","post","type-post","status-publish","format-standard","hentry","category-archive","tag-acquisition","tag-chase","tag-wepay"],"acf":[],"_links":{"self":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/3830","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/comments?post=3830"}],"version-history":[{"count":2,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/3830\/revisions"}],"predecessor-version":[{"id":8102,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/3830\/revisions\/8102"}],"wp:attachment":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/media?parent=3830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/categories?post=3830"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/tags?post=3830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}