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Nov 23, 2017 · 19m · top-founders

852: FinTech: Businesses Process $10b+ In Supplier Payments Through NvoicePay

Carla Friede · 9m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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In this episode of The Top, host Nathan Latka interviews Carla Friede, CEO and co-founder of Nvoicepay, detailing how the company modernized B2B supplier payments, scaled beyond $10 billion in transaction volume, and transitioned from transaction fees toward enterprise SaaS recurring revenue.

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 46.4% of the talking time here. How this is scored →

Nathan as informed peer 3.0 Guest teaching 3.2 Guest disagreement 2.2 Nathan pushing back 3.2
05100:0010:000:59–4:16 · Nathan as informed peer 3/10 Promotional Segment: GetLatka SaaS Metrics Database Nathan introduces Carla and clarifies the company's dual SaaS and transactional revenue model, comparing the service to a consumer payment app for business.4:16–6:41 · Nathan as informed peer 3/10 Founding Nvoicepay in 2009 and Market Opportunity Carla details founding Nvoicepay during the 2008-2009 recession and targeting automotive dealerships, while Nathan presses for the specific growth rate of their 36 trillion dollar market.6:41–10:21 · Nathan as informed peer 4/10 Capital Strategy and Reaching 2,500 Customers Nathan questions why the company raised up to a Series F in small increments, and presses Carla to disclose transaction volume when she initially resists giving concrete numbers.10:21–12:23 · Nathan as informed peer 3/10 Managing the Supplier Network and Payment Rails Carla educates Nathan on why viral network effects do not easily convert suppliers into paying buyers, and clarifies how transactions must run on underlying banking rails.12:23–15:47 · Nathan as informed peer 3/10 Transaction Pricing, Unit Economics, and Data Management Nathan admits ignorance regarding processing cost structures, allowing Carla to break down the 40-cent flat transaction fee vs four-dollar paper checks and explaining why banks struggle with data management.15:47–19:15 · Nathan as informed peer 2/10 Nvoicepay Team Size and Sales Distribution Channels Carla outlines team headcounts and partner sales channels before moving through the Famous Five rapid-fire questions, politely deflecting Nathan's inquiry regarding her age.0:59–4:16 · Guest teaching 2/10 Promotional Segment: GetLatka SaaS Metrics Database Nathan introduces Carla and clarifies the company's dual SaaS and transactional revenue model, comparing the service to a consumer payment app for business.4:16–6:41 · Guest teaching 2/10 Founding Nvoicepay in 2009 and Market Opportunity Carla details founding Nvoicepay during the 2008-2009 recession and targeting automotive dealerships, while Nathan presses for the specific growth rate of their 36 trillion dollar market.6:41–10:21 · Guest teaching 3/10 Capital Strategy and Reaching 2,500 Customers Nathan questions why the company raised up to a Series F in small increments, and presses Carla to disclose transaction volume when she initially resists giving concrete numbers.10:21–12:23 · Guest teaching 5/10 Managing the Supplier Network and Payment Rails Carla educates Nathan on why viral network effects do not easily convert suppliers into paying buyers, and clarifies how transactions must run on underlying banking rails.12:23–15:47 · Guest teaching 6/10 Transaction Pricing, Unit Economics, and Data Management Nathan admits ignorance regarding processing cost structures, allowing Carla to break down the 40-cent flat transaction fee vs four-dollar paper checks and explaining why banks struggle with data management.15:47–19:15 · Guest teaching 1/10 Nvoicepay Team Size and Sales Distribution Channels Carla outlines team headcounts and partner sales channels before moving through the Famous Five rapid-fire questions, politely deflecting Nathan's inquiry regarding her age.0:59–4:16 · Guest disagreement 1/10 Promotional Segment: GetLatka SaaS Metrics Database Nathan introduces Carla and clarifies the company's dual SaaS and transactional revenue model, comparing the service to a consumer payment app for business.4:16–6:41 · Guest disagreement 1/10 Founding Nvoicepay in 2009 and Market Opportunity Carla details founding Nvoicepay during the 2008-2009 recession and targeting automotive dealerships, while Nathan presses for the specific growth rate of their 36 trillion dollar market.6:41–10:21 · Guest disagreement 4/10 Capital Strategy and Reaching 2,500 Customers Nathan questions why the company raised up to a Series F in small increments, and presses Carla to disclose transaction volume when she initially resists giving concrete numbers.10:21–12:23 · Guest disagreement 3/10 Managing the Supplier Network and Payment Rails Carla educates Nathan on why viral network effects do not easily convert suppliers into paying buyers, and clarifies how transactions must run on underlying banking rails.12:23–15:47 · Guest disagreement 2/10 Transaction Pricing, Unit Economics, and Data Management Nathan admits ignorance regarding processing cost structures, allowing Carla to break down the 40-cent flat transaction fee vs four-dollar paper checks and explaining why banks struggle with data management.15:47–19:15 · Guest disagreement 2/10 Nvoicepay Team Size and Sales Distribution Channels Carla outlines team headcounts and partner sales channels before moving through the Famous Five rapid-fire questions, politely deflecting Nathan's inquiry regarding her age.0:59–4:16 · Nathan pushing back 2/10 Promotional Segment: GetLatka SaaS Metrics Database Nathan introduces Carla and clarifies the company's dual SaaS and transactional revenue model, comparing the service to a consumer payment app for business.4:16–6:41 · Nathan pushing back 3/10 Founding Nvoicepay in 2009 and Market Opportunity Carla details founding Nvoicepay during the 2008-2009 recession and targeting automotive dealerships, while Nathan presses for the specific growth rate of their 36 trillion dollar market.6:41–10:21 · Nathan pushing back 6/10 Capital Strategy and Reaching 2,500 Customers Nathan questions why the company raised up to a Series F in small increments, and presses Carla to disclose transaction volume when she initially resists giving concrete numbers.10:21–12:23 · Nathan pushing back 2/10 Managing the Supplier Network and Payment Rails Carla educates Nathan on why viral network effects do not easily convert suppliers into paying buyers, and clarifies how transactions must run on underlying banking rails.12:23–15:47 · Nathan pushing back 4/10 Transaction Pricing, Unit Economics, and Data Management Nathan admits ignorance regarding processing cost structures, allowing Carla to break down the 40-cent flat transaction fee vs four-dollar paper checks and explaining why banks struggle with data management.15:47–19:15 · Nathan pushing back 2/10 Nvoicepay Team Size and Sales Distribution Channels Carla outlines team headcounts and partner sales channels before moving through the Famous Five rapid-fire questions, politely deflecting Nathan's inquiry regarding her age.

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

0:00 · Nathan 86.9% · guest 13.1%0:00 · Nathan 86.9% · guest 13.1%3:00 · Nathan 25.5% · guest 74.5%3:00 · Nathan 25.5% · guest 74.5%6:00 · Nathan 31% · guest 69%6:00 · Nathan 31% · guest 69%9:00 · Nathan 36% · guest 64%9:00 · Nathan 36% · guest 64%12:00 · Nathan 22.9% · guest 77.1%12:00 · Nathan 22.9% · guest 77.1%15:00 · Nathan 61.7% · guest 38.3%15:00 · Nathan 61.7% · guest 38.3%18:00 · Nathan 69.8% · guest 30.2%18:00 · Nathan 69.8% · guest 30.2%
Sharpest disagreement ▶ 9:33 Refusing to disclose exact volume to avoid bank competition

Carla firmly refuses Nathan's request to disclose annual transaction volume, citing fintech dynamics and competition against large commercial banks.

 Hardest push from Nathan ▶ 10:08 Pinning down transaction volume bounds

Nathan refuses to let the volume metric go unanswered, actively negotiating and pinning Carla down to between ten billion and one hundred billion dollars.

 Biggest teaching moment ▶ 12:34 Demystifying payment economics and bank limitations

Carla breaks down transaction costs per payment rail and explains why traditional banks fail to solve enterprise supplier data management due to steep profit margin hurdles.

 Nathan holds their own ▶ 4:07 Synthesizing the core SaaS vs volume monetization dynamic

Nathan cuts through the ambiguous explanation to clearly define their current monetization as volume-driven while the SaaS platform is actively developed.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Promotional Segment: GetLatka SaaS Metrics Database 3212 Nathan introduces Carla and clarifies the company's dual SaaS and transactional revenue model, comparing the service to a consumer payment app for business.
Founding Nvoicepay in 2009 and Market Opportunity 3213 Carla details founding Nvoicepay during the 2008-2009 recession and targeting automotive dealerships, while Nathan presses for the specific growth rate of their 36 trillion dollar market.
Capital Strategy and Reaching 2,500 Customers 4346 Nathan questions why the company raised up to a Series F in small increments, and presses Carla to disclose transaction volume when she initially resists giving concrete numbers.
Managing the Supplier Network and Payment Rails 3532 Carla educates Nathan on why viral network effects do not easily convert suppliers into paying buyers, and clarifies how transactions must run on underlying banking rails.
Transaction Pricing, Unit Economics, and Data Management 3624 Nathan admits ignorance regarding processing cost structures, allowing Carla to break down the 40-cent flat transaction fee vs four-dollar paper checks and explaining why banks struggle with data management.
Nvoicepay Team Size and Sales Distribution Channels 2122 Carla outlines team headcounts and partner sales channels before moving through the Famous Five rapid-fire questions, politely deflecting Nathan's inquiry regarding her age.

Statements from this episode (11)

Prediction Not checkable as stated
Friede: SaaS subscriptions will overtake transaction fees as Nvoicepay grows
“I think in the future, it will be more of the SaaS based model that will become more meaningful. So as we expand and invest in our platform, the solution grows. And I think that'll be a more meaningful revenue stream in the future.”
Carla Friede Nov 23, 2017 ▶ 3:54
Assertion Supported
Friede: B2B payments market represents $36 trillion in payment volume
“So we're in a market that's 36 trillion in payment volume size.”
Carla Friede Nov 23, 2017 ▶ 6:13
Assertion Not checkable as stated
Nvoicepay grows 100% year-over-year compared to 25% broader market growth
“So I, the numbers I've seen only show it at 25%, but we're growing double year over year.”
Carla Friede Nov 23, 2017 ▶ 6:31
Disclosure
Friede: Nvoicepay has raised about $25 million in funding
“About twenty-five million.”
Carla Friede Nov 23, 2017 ▶ 6:48
Insight
Friede: Raising incremental funding tied to milestones preserves equity in payments
“In payments, you make money a little bit of a time. So it takes a while to get a payment company up to critical mass. And in that environment, it's much smarter to raise a little bit of money, show results, hit a milestone and raise more money. And that way yo…”
Carla Friede Nov 23, 2017 ▶ 7:11
Assertion Not publicly verifiable
Friede: Nvoicepay's transaction volume is well into double-digit billions
“So no matter what I say seems really small, but we're way into double digits in billions of dollars.”
Carla Friede Nov 23, 2017 ▶ 10:02
Disclosure
Nvoicepay reaches 2,500 customers and 300,000 suppliers
“So now in our network, we have 2500 customers and 300,000 suppliers.”
Carla Friede Nov 23, 2017 ▶ 10:50
Insight
Friede: Growing B2B payments via supplier network effects is difficult
“I think it's really hard to grow with a network effect through suppliers.”
Carla Friede Nov 23, 2017 ▶ 11:13
Assertion Supported
Friede: Paper checks cost businesses ten times more than electronic payments
“So think about the customer today is paying by check and a check costs 10 times more than electronic payment, right? So think of a check costing like four bucks and the electronic payment costing maybe 40 cents.”
Carla Friede Nov 23, 2017 ▶ 12:38
Opinion
Banks fail at payment tech due to 50% margin targets
“So banks, I think one of the reasons banks haven't solved the problem yet is because they have a margin target, right? Bank wants to make 50%. So they don't want to invest, yeah, at least 50%. So they don't want to invest in technology, right? They're not trad…”
Carla Friede Nov 23, 2017 ▶ 15:18
Opinion
Meg Whitman evaluated Uber's political landscape and passed on CEO role
“I think there were conversations to bring Meg on, and I think Meg was smart enough to understand the political landscape and think maybe that was in the right spot for her.”
Carla Friede Nov 23, 2017 ▶ 18:03
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