POS Merchant Services, established in 2006, is a thriving company that offers point of sale credit card solutions and credit card processing. However in 2010, a crowded industry lead owners to make the decision to grow their portfolio by adding a solutions business. “The solutions business is where we see a very exciting future,” says VersaPay CEO, Craig O’Neill. “We have two products in the solutions business. One of them is called ‘Electronic Money Transfer’ and you can think of it almost as a PayPal for business. It is the ability to go online and very easily pay a counter party with electronic check, so from bank account to bank account or with a credit card.” The company used the Electronic Money Transfer product as a stepping-stone towards their flagship product.

Winpak, a Winnipeg based packing company is the first customer to go live with VersaPay, an electronic invoicing solution. The target market for VersaPay is companies that generate $10 million to one billion dollars in revenue. “For companies of that size, our product really allows them to track their entire accounts receivables process. So everything from taking accounting data out of their accounting system to creating invoices, to collaborating with their clients about their invoices, invoice information and details, to getting paid and last but not least, having excellent analytics about their accounts receivables, says O’Neill. “We do all of that in the cloud, so there is no software to install, no upfront cost, and there is no licensing fee. The client can sign up and start using our platform and get the benefit of it very quickly without having to invest a lot of time and effort. They also save money. Because the cost of using our software is actually less than a paper based process if they are sending out paper invoicing today.”

Not only does VersaPay save clients’ money, but it also allows them to focus on their core business. “All of the studies that we’ve done with our prospects, and business cases indicate that the cost of using VersaPay is half to two thirds of doing a manual paper-based process. We can save them money right away, and that’s partly labour. The client can re-deploy those people to do other things.” An additional benefit of the VersaPay solution is: the client gets paid faster. “Rather than putting an invoice in the mail where it might take three or four days to get to the client, then the paper might sit in somebody’s desk for a while,” explains O’Neill.

“When they release an invoice in the portal, the customer has it immediately and they can track when the customer opens it. So they get complete visibility.” The client can see if the invoice has been paid or disputed. A process that might normally take 30 days or more by mail can all be completed within minutes of being released by the client into the portal for their consumer.

VersaPay is the first solution of it’s kind in the industry. Existing solutions allow the client to send invoices as PDF documents to their suppliers. VersaPay is unique in the sense that the solution offers the complete process of: marshaling data, rendering invoices, collaborating in real time with clients and providing a portal for analytics – for both the client and their suppliers. This entire process is done online and offered on a pay-as-you-go basis.

The Toronto based company currently maintains a head office in Toronto and staff in Montreal, Vancouver and New York. Future plans include growth and hope to change the face of business-to-business transactions. “We have signed up sales and marketing deals with some terrific industry players,” says O’Neill. “TD Bank is going to be re-selling our solution to their business customers, and we are thrilled about that, and we have signed a marketing agreement with MasterCard. The great thing about the MasterCard agreement is; they like the way this provides value in a business-to-business relationship. Credit card companies have huge market penetration in business-to-consumer. But in business-to-business, merchants have tended to resist accepting credit card payments because they cost them money.” MasterCard is very interested in the way VersaPay can drive more credit card payments on its platform in a business-to-business environment. MasterCard and VersaPay are teaming up to change the way businesses conduct business with one another. On average merchants pay two per cent of the payment they receive to credit card companies. MasterCard has discounted this number substantially as an incentive, and is allowing VersaPay to pass on the sizeable discount to their clients. In this rare and unique move, the industry is likely to experience a substantial shift.

As a Canadian Company, VersaPay is looking to expand in The United States. The company has signed a deal with Heartland Payment Systems, a large payment processing company in the US. Heartland’s 800 strong sales force, named one of the top 10 selling organizations across all industries in the United States, has started selling the VersaPay solution as of January 2014.