Swipely announced today that the flow of payments through its system has doubled since April, with the firm now processing charges at a yearly run rate of $1 billion. It reported a $500 million annual run rate in April, and a $250 million run rate three months prior.
Swipely is notable for its non-traditional location: Providence, Rhode Island. Its CEO Angus Davis calls its home base an advantage, as the talent market is not as constrained as it is in Silicon Valley. And Providence isn’t too far from Boston, he explained, so his company can hire from two major markets.
In case you haven’t heard of the firm, Swipely works with retail merchants – think bars, restaurants, and the like – to improve their payment systems. Integrating with their existing point of sales systems, Swipely manages credit card processing, and provides value on top of those transactions in the form of business analytics, reward programs, digital reputation and so forth. For the average business owner who lacks Internet savvy, what Swipely offers at no cost differential (Swipely matches a customer’s current rate structure) can be compelling.
According to its release, Swipely has grown its payment volume by at least a 100% compound rate in each of its past four quarters.
The company wants to continue its current growth rates, but can’t do so on its own. With a fresh capital injection this May of $12 million, Swipely is working to grow a network of vendors to pitch its service in addition to expanding its in-house sales team.
The Swipely Partner Network was announced today, but has been in operation for some time, having around 50 partners at current tip. Swipely is channeling its inner Microsoft by turning to third-parties and, in a full-throated Redmond accent, “value-added resellers, independent software vendors, marketing consultants, and professional service providers.”
Naturally, customers that are brought to Swipely via partners are not as profitable as companies that it bags on its own, but the system should allow the company to continue its processing run-rate incline.
Swipely is a company that combines interesting technology and the world of physical retail. It can be a rough patch of the market, as other startups have learned. However, assuming normal payment processing rates, Swipely has eight-figure revenue, so it is hardly struggling.
The next test for Swipely will be its ability to continue rapid dollar-sum growth quarter over sequential quarter, while maintaining margin health, and reaching profitability. We’re watching.
Top Image Credit: Jay Gooby