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Apr 28, 2018 · 21m · top-founders

1008 WePay CEO on $1b+ in Transaction Volume Helping Your Favorite Online Platforms Process Payments

Bill Clerico · 13m spoken Nathan Latka · 6m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The Top Entrepreneurs Podcast, WePay co-founder and CEO Bill Clerico discusses the evolution of his payments company from a Y Combinator-backed P2P tool into an embedded SaaS payment infrastructure provider that scaled to billions in volume and was acquired by JPMorgan Chase for $400 million.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 31.5% of the talking time here. How this is scored →

Nathan as informed peer 4.2 Guest teaching 3.2 Guest disagreement 1.2 Nathan pushing back 2.8
05100:0010:0020:000:49–4:23 · Nathan as informed peer 4/10 WePay's Business Model and Embedded Payments API Latka asks about standard take rates and margin pressure in fintech. Clerico clarifies the precise standard market pricing (2.9% plus 30 cents) and explains that interchange fee floors set by Visa and MasterCard dictate pricing rather than pure price-undercutting competition.4:24–9:14 · Nathan as informed peer 4/10 Assessing Blockchain and Cryptocurrency in Platform Payments Latka raises crypto market cap shifts and confronts Clerico with reported $70M raised and a $400M acquisition figure by JPMorgan Chase. Clerico maintains focus on customer needs, politely labeling the financial figures as speculation while recounting WePay's early founding difficulties.9:14–12:21 · Nathan as informed peer 6/10 Early Funding, Scaling Volume, and Market Landscape Latka showcases detailed market context, referencing specific fundraising rounds, volume benchmarks, and comparing WePay's success to competitor Tilt's soft landing at Airbnb. Clerico explains the broken unit economics of standalone peer-to-peer payments that forced their pivot to platform APIs.12:23–14:36 · Nathan as informed peer 2/10 Sponsor Break: SignEasy E-Signature Solution Following a mid-episode sponsor read, Latka asks about early monetization guidance at Y Combinator. Clerico details the hierarchy between traction and revenue when pitching early-stage investors.14:50–18:42 · Nathan as informed peer 5/10 FinTech Valuation Metrics and Post-Acquisition Momentum Latka probes valuation mechanics, liquidation preferences, and questions what motivates a founder post-wealth generation. Clerico details the post-acquisition incentives provided by Chase and shares lessons on maintaining a minimal personal burn rate early on.0:49–4:23 · Guest teaching 4/10 WePay's Business Model and Embedded Payments API Latka asks about standard take rates and margin pressure in fintech. Clerico clarifies the precise standard market pricing (2.9% plus 30 cents) and explains that interchange fee floors set by Visa and MasterCard dictate pricing rather than pure price-undercutting competition.4:24–9:14 · Guest teaching 2/10 Assessing Blockchain and Cryptocurrency in Platform Payments Latka raises crypto market cap shifts and confronts Clerico with reported $70M raised and a $400M acquisition figure by JPMorgan Chase. Clerico maintains focus on customer needs, politely labeling the financial figures as speculation while recounting WePay's early founding difficulties.9:14–12:21 · Guest teaching 4/10 Early Funding, Scaling Volume, and Market Landscape Latka showcases detailed market context, referencing specific fundraising rounds, volume benchmarks, and comparing WePay's success to competitor Tilt's soft landing at Airbnb. Clerico explains the broken unit economics of standalone peer-to-peer payments that forced their pivot to platform APIs.12:23–14:36 · Guest teaching 3/10 Sponsor Break: SignEasy E-Signature Solution Following a mid-episode sponsor read, Latka asks about early monetization guidance at Y Combinator. Clerico details the hierarchy between traction and revenue when pitching early-stage investors.14:50–18:42 · Guest teaching 3/10 FinTech Valuation Metrics and Post-Acquisition Momentum Latka probes valuation mechanics, liquidation preferences, and questions what motivates a founder post-wealth generation. Clerico details the post-acquisition incentives provided by Chase and shares lessons on maintaining a minimal personal burn rate early on.0:49–4:23 · Guest disagreement 1/10 WePay's Business Model and Embedded Payments API Latka asks about standard take rates and margin pressure in fintech. Clerico clarifies the precise standard market pricing (2.9% plus 30 cents) and explains that interchange fee floors set by Visa and MasterCard dictate pricing rather than pure price-undercutting competition.4:24–9:14 · Guest disagreement 2/10 Assessing Blockchain and Cryptocurrency in Platform Payments Latka raises crypto market cap shifts and confronts Clerico with reported $70M raised and a $400M acquisition figure by JPMorgan Chase. Clerico maintains focus on customer needs, politely labeling the financial figures as speculation while recounting WePay's early founding difficulties.9:14–12:21 · Guest disagreement 1/10 Early Funding, Scaling Volume, and Market Landscape Latka showcases detailed market context, referencing specific fundraising rounds, volume benchmarks, and comparing WePay's success to competitor Tilt's soft landing at Airbnb. Clerico explains the broken unit economics of standalone peer-to-peer payments that forced their pivot to platform APIs.12:23–14:36 · Guest disagreement 1/10 Sponsor Break: SignEasy E-Signature Solution Following a mid-episode sponsor read, Latka asks about early monetization guidance at Y Combinator. Clerico details the hierarchy between traction and revenue when pitching early-stage investors.14:50–18:42 · Guest disagreement 1/10 FinTech Valuation Metrics and Post-Acquisition Momentum Latka probes valuation mechanics, liquidation preferences, and questions what motivates a founder post-wealth generation. Clerico details the post-acquisition incentives provided by Chase and shares lessons on maintaining a minimal personal burn rate early on.0:49–4:23 · Nathan pushing back 2/10 WePay's Business Model and Embedded Payments API Latka asks about standard take rates and margin pressure in fintech. Clerico clarifies the precise standard market pricing (2.9% plus 30 cents) and explains that interchange fee floors set by Visa and MasterCard dictate pricing rather than pure price-undercutting competition.4:24–9:14 · Nathan pushing back 3/10 Assessing Blockchain and Cryptocurrency in Platform Payments Latka raises crypto market cap shifts and confronts Clerico with reported $70M raised and a $400M acquisition figure by JPMorgan Chase. Clerico maintains focus on customer needs, politely labeling the financial figures as speculation while recounting WePay's early founding difficulties.9:14–12:21 · Nathan pushing back 4/10 Early Funding, Scaling Volume, and Market Landscape Latka showcases detailed market context, referencing specific fundraising rounds, volume benchmarks, and comparing WePay's success to competitor Tilt's soft landing at Airbnb. Clerico explains the broken unit economics of standalone peer-to-peer payments that forced their pivot to platform APIs.12:23–14:36 · Nathan pushing back 2/10 Sponsor Break: SignEasy E-Signature Solution Following a mid-episode sponsor read, Latka asks about early monetization guidance at Y Combinator. Clerico details the hierarchy between traction and revenue when pitching early-stage investors.14:50–18:42 · Nathan pushing back 3/10 FinTech Valuation Metrics and Post-Acquisition Momentum Latka probes valuation mechanics, liquidation preferences, and questions what motivates a founder post-wealth generation. Clerico details the post-acquisition incentives provided by Chase and shares lessons on maintaining a minimal personal burn rate early on.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 49.9% · guest 50.1%0:00 · Nathan 49.9% · guest 50.1%3:00 · Nathan 33.7% · guest 66.3%3:00 · Nathan 33.7% · guest 66.3%6:00 · Nathan 3% · guest 97%6:00 · Nathan 3% · guest 97%9:00 · Nathan 30.3% · guest 69.7%9:00 · Nathan 30.3% · guest 69.7%12:00 · Nathan 52.6% · guest 47.4%12:00 · Nathan 52.6% · guest 47.4%15:00 · Nathan 23.3% · guest 76.7%15:00 · Nathan 23.3% · guest 76.7%18:00 · Nathan 18.5% · guest 81.5%18:00 · Nathan 18.5% · guest 81.5%21:00 · Nathan 65.5% · guest 34.5%21:00 · Nathan 65.5% · guest 34.5%
Sharpest disagreement ▶ 5:13 Clerico deflects reported $400M acquisition price

Clerico resists Latka's direct question regarding the reported $400M transaction size, defining it as speculation and firmly pivoting back to customer focus and overall shareholder success.

 Hardest push from Nathan ▶ 10:56 Latka challenges WePay's edge over competitor Tilt

Latka directly confronts Clerico with the reality of competitors like Tilt floundering into a soft landing at Airbnb despite top-tier VC backing, demanding to know what WePay actually did differently to achieve a massive exit.

 Biggest teaching moment ▶ 3:34 Clerico explains payment unit economics and interchange floors

Clerico corrects Latka's assumption about price wars and take rates, explaining that Visa and MasterCard interchange fees set a non-negotiable floor, meaning payment companies compete on APIs and integration quality rather than raw pricing.

 Nathan holds their own ▶ 10:56 Latka demonstrates deep background knowledge on market competitors

Latka displays impressive domain knowledge by citing specific details about Andreessen-backed competitor Tilt, their Y Combinator connection, and their eventual soft landing acquisition by Airbnb.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
WePay's Business Model and Embedded Payments API 4412 Latka asks about standard take rates and margin pressure in fintech. Clerico clarifies the precise standard market pricing (2.9% plus 30 cents) and explains that interchange fee floors set by Visa and MasterCard dictate pricing rather than pure price-undercutting competition.
Assessing Blockchain and Cryptocurrency in Platform Payments 4223 Latka raises crypto market cap shifts and confronts Clerico with reported $70M raised and a $400M acquisition figure by JPMorgan Chase. Clerico maintains focus on customer needs, politely labeling the financial figures as speculation while recounting WePay's early founding difficulties.
Early Funding, Scaling Volume, and Market Landscape 6414 Latka showcases detailed market context, referencing specific fundraising rounds, volume benchmarks, and comparing WePay's success to competitor Tilt's soft landing at Airbnb. Clerico explains the broken unit economics of standalone peer-to-peer payments that forced their pivot to platform APIs.
Sponsor Break: SignEasy E-Signature Solution 2312 Following a mid-episode sponsor read, Latka asks about early monetization guidance at Y Combinator. Clerico details the hierarchy between traction and revenue when pitching early-stage investors.
FinTech Valuation Metrics and Post-Acquisition Momentum 5313 Latka probes valuation mechanics, liquidation preferences, and questions what motivates a founder post-wealth generation. Clerico details the post-acquisition incentives provided by Chase and shares lessons on maintaining a minimal personal burn rate early on.

Statements from this episode (7)

Assertion Supported
Clerico: Card issuers take vast majority of 3% payment fees
“Actually, we make kind of a tiny fraction of that. The vast majority goes to your credit card company that issues your card as kind of sanctioned by Visa and MasterCard.”
Bill Clerico Apr 28, 2018 ▶ 3:46
Opinion
Bill Clerico: Crypto has no killer app for small business software
“But I think what we found is that in this part of the market, there really hasn't been a killer application of those technologies yet.”
Bill Clerico Apr 28, 2018 ▶ 4:53
Assertion Supported
Clerico: WePay processed low single-digit billions in payment volume in 2016
“So 2016 definitely sort of low single digit billions as we were growing but, you know, and sort of doubling year over year.”
Bill Clerico Apr 28, 2018 ▶ 10:27
Insight
Clerico: P2P payments cannot work as a standalone business
“Really because there's no business model, it's about, you know, people expect that to be free and it's very hard to make money on that. So It makes a lot of sense as part of a bigger platform. And, you know, now most people don't know this, but Venmo is owned …”
Bill Clerico Apr 28, 2018 ▶ 11:51
Insight
Clerico: Profitability beats revenue, and revenue beats user traction
“The best case scenario is to be profitable. Next best is generate revenue. You know, traction is sort of a nice number three.”
Bill Clerico Apr 28, 2018 ▶ 13:43
Disclosure
WePay pivoted from P2P after charging consumer fees stalled traction
“Yeah, it was really hard to get traction while we were charging fees. And so it was sort of like, anytime you have to choose between traction and, you know, and monetization, like there's, you need to cut some other strategy for how to monetize. And we figured…”
Bill Clerico Apr 28, 2018 ▶ 14:11
Insight
Clerico: Right after college is the ideal time for startup risks
“When you graduate from college, that's such a unique time in your life where you have no responsibilities, you know, no kids, no pets, no burn rate If you're gonna take a risk in your life, that's such a phenomenal time to do it”
Bill Clerico Apr 28, 2018 ▶ 20:54
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