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Scotiabank Digital Banking Lab

Payfare


Payments & Money Transfer | Toronto, ON | Founded: 2014 | Employees: 50 | www.payfare.com


PHONE: (800) 719-2685 | LINKEDIN PROFILE | BLOOMBERG PROFILE

Last updated December 3, 2018 | To download a PDF version, click here

 

Company Overview

Payfare Inc. is a financial technology company that provides mobile banking and micro-lending solutions for rideshare drivers in North America. The company develops a mobile application that allows users to access their account and see their deposits, balance, transactions, and more. It provides a MasterCard that allow users to pay bills or send money via Interac e-Transfer. Payfare has divisions in the United States, United Kingdom, and Mexico.


Senior Management

Keith McKenzie: Co-Founder and Director (Oct 2014-Present). Previously: CEO, SelectCore Ltd. (2006-2015); President, Local Fone Service (1998-2006).

Ryan Deslippe: Co-Founder (Oct 2014). Previously: Co-Founder, Prepaid Telecom & Payments Co. (1999-2015).

Chris Seip: Chairman and CEO (May 2018-Present). Previously: Global COO, RBC (2013-2016); Managing Director, RBC (1999-2013); Branch Manager, TD Bank Group (1992-1997). Education: Bachelor of Arts, Economics (1992), Western University; MBA, Finance (1999), McGill University.

John Power: COO (Jan 2018-Present). Previously: CEO, Longview Solutions (2008-2017); Vice President, Business Development & Sales, Longview Solutions (2005-207); Vice President, Client Services (1996-2004); Director, Strategic Technology Planning, Southam Inc. (1994-1996); Senior Manager, Accenture (1986-1994). Education: Bachelor of Commerce and Finance (1986), University of Toronto.

Brian Miller: CIO (Apr 2018-Present). Previously: Chief Technology Officer, Berkeley Payment Solutions (2015-2018); Chief Technology and Privacy Officer, Securefact Transaction Services Inc. (2014-2015); CIO, Points International (2006-2009); Product Management, Algorithmics Inc. (1996-2000); Software Development, IBM (1984-1996). Education: BSc., Honours Computer Science, University of British Columbia; MBA, Ivey Business School.


History

Co-Founders Keith McKenzie and Ryan Deslippe were industry pioneers as co-founders of one of Canada's leading prepaid financial services companies in 1999, SelectCore Ltd.,[1] a seller of prepaid phone cards. Selectore was awarded a multi-year government contract with the City of Toronto in 2012.[2] The business has shifted its focus and is now known as Fintech Select.[3] McKenzie and Deslippe partnered once again to launch Payfare in 2014.

[1] https://www.pressreader.com/canada/stockwatch-daily/20171122/282200831224660
[2] https://www.newswire.ca/news-releases/selectcore-awarded-multi-year-government-contract-with-the-city-of-toronto-510488741.html
[3] http://www.fintechselect.com


Funding

Payfare received a $50,000 initial investment from Gunpowder Capital Corp. on September 22, 2016. On July 27, 2018, Payfare closed an offering of 7,850,878 Subscription Receipts for approximately $5.10 million.[4] Approximately $2.01 million of the Subscription Receipts was sold in the Brokered Offering with a syndicate led by Mackie Research Capital Corp. and including Haywood Securities Inc. and Canaccord Genuity Corp.

[4] https://www.nasdaq.com/press-release/hope-well-enters-into-definitive-agreement-with-payfare-inc-and-payfare-closes-51-million-20180802-01765

Key Corporate Developments

September 22, 2016: https://ceo.ca/@newsfile/gunpowder-capital-corp-engaged-by-payfare-inc
January 30, 2018: https://markets.businessinsider.com/news/stocks/i2c-partners-with-payfare-to-deliver-payment-solutions-for-on-demand-drivers-and-truckers-1014560016
July 27, 2018: https://web.tmxmoney.com/article.php?newsid=7743385874707875&qm_symbol=HOPE.P:APH


Business Highlights

Strategy

Payfare operates under two lines of business[5]:

  • Mobile Banking – Payfare enables transportation and ridesharing companies to pay drivers by loading their salaries on a prepaid Mastercard. Earnings are automatically deposited to Payfare Mastercards every day, and earnings can be cashed anytime with access to their account 24/7 online or in-app via their iOS or Android device.
  • Micro-Lending – With a Payfare Mastercard, Driver Partners can shop in-store or online anywhere Mastercard is accepted. They can also withdraw cash from ATM’s, send money, pay bills & more.

[5] https://uber-developers.news/uber-and-payfare-partner-to-pay-driver-partners-right-away-eec7a1f5335c


Products/Pricing

  1. Immediate Earnings: Payfare allows end-users to receive their earnings immediately deposited into their account. There is a $0.50 earnings load fee each time to the Payfare Mastercard if earnings exceed $20.
  2. ATM Cash Withdrawals: Payfare allows Driver Partners to perform ATM cash withdrawals. A $2.50 ATM owner surcharge may apply, but Driver Partners will have access to thousands of surcharge-free ATMs.
  3. Online Money Transfers: Like any other digital banking platform, Driver Partners can send Interac e-Transfers to anyone with a bank account in Canada for a fee of $1.50 per transaction.
  4. Foreign Exchange Transactions: Transactions completed in a foreign currency with the Payfare Mastercard will face a 2.5% foreign exchange fee.


Technology

Payfare partnered with i2c, using the Agile Processing payments platform to serve their global prepaid solutions.[6] This payment platform enables transportation and ridesharing companies to pay drivers by loading their salaries on a prepaid Mastercard. Through the mobile app, Payfare users experience ease with on-demand banking.

[6] https://www.bizjournals.com/losangeles/prnewswire/press_releases/California/2018/01/30/SF00815


Distribution/Logistics

Payfare serves drivers of transportation and ridesharing companies in 12 countries globally, including Canada and the United States. Drivers are accessed through partnerships with transportation and ridesharing companies on a mobile banking application that works on iPhone (iOS) and Android smartphones.


Marketing

Payfare has collaborated with XTM Inc., a Toronto-based marketing for all Payfare Social marketing.[7] XTM was integral for the design of the Payfare app and technological build of the website and payment portals.

[7] https://xtminc.com/payfare-case-study

 

Competitors

While Payfare is the first platform that enables companies to load salaries on a prepaid Mastercard, Payfare faces competition in the instant earnings mobile banking space:

  • INSTANT Financial – (Toronto, ON) Instant gives verified employees daily access to their earned wages and/or tips. Employers, however, must offer Instant as a pay disbursement option.
  • DailyPay – (New York, NY) DailyPay partners with companies to offer employees the ability to control when they get paid. This empowers financial wellness, but also acts as a tool to recruit, retain, and engage the workforce.


Corporate Profile Created By: Sherry Wang, Ivey HBA Candidate 2019