Inside a Palo Alto, Calif., building that once housed PayPal headquarters, the upstarts -- Rich Aberman, 25, and Bill Clerico, 24 -- are growing a new online payments company. Their investors include PayPal cofounder Max Levchin. Their mission? Poaching part of PayPal's business.
In April, WePay -- now a 13-person company -- rolled out its online payment service. Now 500 new user groups join WePay each week, Aberman says. The website's weekly transaction totals more than tripled between July and August, when it hit $1 million.
The company gets a commission from each payment: either a flat 50 cents or 3.5% of the total, depending on whether users are paying with their credit cards or bank accounts. Users gather those payments in shareable, purpose-specific accounts, rather than personal ones. The system lets group leaders keep track of who has paid, nag delinquent friends with e-mails, and withdraw collections.
More Info: WePay