One of the many recent non-bank payment startups, WePay, today announced it's raised $7.5 million in funding; more importantly, it says its payment volumes increased 80% in July. (Other startups in this space include Square, TwitPay, Boku and Zuora.)
WePay lets users set up an FDIC-insured account for each group they want to manage. These accounts are used to collect money for group events and fees. Members of the group pay their portion using credit cards, ACH transactions, paper checks, or a WePay balance. The company's website features testimonials from a girl who collected money for a bachelorette party through the site and a fraternity that collects its dues via WePay.
WePay derives revenue from either a 3.5 percent transaction fee or a 50 cent transaction fee, depending on whether group members pay with a bank account or credit card.
Investors in WePay include PayPal founder Max Levchin, YouTube cofounder Steve Chen, and former Intuit CTO and CFO Eric Dunn. The company launched in April 2010.