The days of tradies waiting for weeks after a job to get paid may soon be over, with tradie marketplace hipages partnering with fintech startup PromisePay to integrate a payment system into its app and launch in-app payments.
This opens PromisePay up to a huge new market. First launched in 2004, hipages now reports generating $1.35 billion worth of jobs annually. Its potential has not gone unnoticed, with News Corp acquiring a 25 percent stake in the startup for a reported $40 million in December, valuing hipages at $160 million, and real estate giant Ray White Group partnering with the startup last month.
David Vitek, cofounder and CEO of hipages, said that the partnership is “just the beginning”, with hipages envisaging the payment of deposits in escrow and the ability to schedule monthly payments to regular service providers such as gardeners.
“Our mission at hipages is to make any home improvement job as easy as catching a ride with Uber, and payments are a crucial element of delivering this experience. Now you can pay for a tradie directly from your phone, offering more payment choice and a greater user experience for getting any job done around the home,” Vitek said.
Simon Lee, cofounder and CEO of PromisePay, added, “With PromisePay’s instant onboarding, tradies can sign up and start transacting within minutes – no more fumbling over cash or chasing invoices.”
Since its launch in 2013, PromisePay is now active across the US, Australia, and New Zealand. The company reports growing its revenue 25 percent month on month in 2015, and doubling the number of direct sign ups every quarter.
The Melbourne startup offers seamless transaction experience by removing the need for people to pay cash. While a cashless model seems like an easier alternative, creating user trust and validating people are who they say they are is one of the industry’s biggest issues. PromisePay has created a system that conducts background checks to enable identification and authentification of each customer and business owner.
Lee said, “Simply accepting online and mobile payments is only the tip of the iceberg. There are a plethora of complex problems hidden behind payments that have seen platforms build large payments teams and implement expensive tools to manage them.”
Image: PromisePay Team. Source: Supplied