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Versapay Corp - Ordinary Shares VPYYF

VersaPay Corp is a financial technology company that provides cloud-based accounts receivable automation software and payment solutions for businesses. The company's only segments are VersaPay Solutions Through its VersaPay Solutions segment, the company focuses on electronic invoice presentment with its ARC software (ARC) and develops value-added payment technologies, such as its PayPort and VersaPay Gateway. It sells its products to customers in Canada and the United State.


OTCPK:VPYYF - Post by User

Comment by Wallstreetjackon Jan 11, 2017 12:09pm
139 Views
Post# 25694328

RE:RE:Update from Virtus Advisory on Oct 13

RE:RE:Update from Virtus Advisory on Oct 13

VersaPay drives revenue on 2 primary fronts. To keep it simple at first, let's just look at the direct sales process. 

VersaPay approach a business (i.e. suppier) saying that they are able to streamline their AR process, in turn allowing them to pay faster and increase operation efficiency. VersaPay charges on two fronts: an outright fee for the software, but more so on the number of end users receiving their invoices on the platform. So I'm a business who has 1000 "customers". VersaPay is going to charge a fee for invoices sent to those 1000 customers who are signed up on our platform as well, hence recurring revenue.

If the customer actually pays through the VersaPay platform, they will receive an additional processing fee. 

Growth would primarily be driven through this direct sales approach and from channel partners. NewsCycle is a great example. They use ARC their clients also have clients so it is pretty much a domino effect. If NewsCycle can convince their clients to sign up (i.e. acting as a channel partner) there will be some sort of referral/revenue split between NewsCycle and VersaPay.

The model is entirely scalable based on this channel partner approach. While they could grow organically through direct sales, channel partners provide a much faster approach since the infrastrucuture of these large groups is already in place. It rockets the number of end users substantially when these types of partners sign up. 

I don't think revenue/client is readily available after reading through their FS/MDnA. 

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