Swipesum aims to ease burden on businesses when accepting credit card payments

Using a credit card to make a purchase can be a big convenience for a customer, but it can also be a big hassle for the business. But one of this year's 1ST50K winners has a plan to help.

When a company takes credit card payments, a percentage of that payment goes back to the credit card merchant -- the percentage could be as much as 8% of each transaction. Swipesum negotiates rates with a variety of credit card processors, and at no cost to the business.

Swipesum is a software-enabled service that finds any business the best payments solution at the best rate, at no cost to them. By eliminating most fees associated with accepting payments or turning them into a lucrative revenue stream, Swipesum is any business' "fractional chief payments officer." Swipesum founder and CEO Michael Seaman and his brother Stephen, the COO, have led the company since its inception in 2016.

While handling business development for payments giant Worldpay, Michael Seaman saw the fees charged to merchants, and the idea for Swipesum was born.

"Credit card processing/merchant services is historically a shady industry. Everyone hates it, and they should," Seaman said. "It's a massive burden for business owners -- you sell something for $100 and then $3 disappears before it hits your bank."

With more than 5,000 payments companies in the U.S. alone, Swipesum does the negotiating for the merchant, finding the best solution and eliminating many of the fees associated with accepting payments.

Swipesum CEO Michael Seaman.Submitted

How do they make money? After the new agreement is signed, if a business needs any additional work, such as going to all of the business locations installing hardware, checking statements to make sure rates haven't gone up or dealing with chargebacks, Swipesum charges the client. Combing over credit card statements can take large businesses hours or days. Swipesum built software to read statements, enabling them to read a statement instantly.

In addition, Swipesum usually receives a commission from payments companies based on volume for connecting them with businesses. Since the commission is based on volume, Swipesum negotiates on behalf of the business to eliminate most fees associated with accepting payments. Merchants sign directly with the payments providers and there are no sales or middlemen taking commissions.

According to its website, by late 2021, Swipesum is on track to save companies $100 million. They have analyzed more than 5 million transactions -- and counting.

Swipesum does business directly with business owners, but during its time in smaller communities such as Cape Girardeau, the company has realized the need to also have relationships with banks and is working to find the best regional bank partner, Seaman said.

Swipesum COO Stephen Seaman.Submitted

Even before Codefi's 1ST50K competition, Swipesum wanted to expand in small regions, and Seaman said he was familiar with Cape Girardeau as a highway exit during trips to his wife's hometown of Sikeston, Missouri. He said he realized there may be an opportunity to "own Southeast Missouri, southwest Missouri and Springfield. There are a lot of places that just aren't necessarily underserved, but no one is really trying. No big payments companies are trying to own Missouri," he said.

As Seaman learned about 1ST50K, "It was a no brainer. Coming to Cape made the most sense for us."

To put down roots in Cape Girardeau long term, Seaman said Swipesum would need to "actually have accounts here, or a bank partnership -- that would make it so sticky where it would kind of, like, guarantee us not to leave."

Seaman is optimistic about Swipesum's ability to reach potential customers in the region.

"We will have a conversation with every sizable business in Southeast Missouri," he said.

With one employee hired since Swipesum has been in Cape Girardeau, they're looking to hire a second to come on board, along with 13 employees in the St. Louis office.

"I think, realistically, like, we could have an extremely large team here that could support the Bootheel, Paducah, this region," Seaman said.

Seaman wants the community to know there are differences between 1ST50K and other business accelerators he has been part of.

"The huge difference is that Codefi does better than anyone I've seen," he said. "The 1ST50K team is actually working for us to make us successful here. So, as opposed to just giving us a check, they ask us what our needs are, and then actually work for us. 1ST50K has been a huge blessing."

Swipesum currently has 281 clients, including Fair.com, Zenreach, Chuck E. Cheese and CrossFit. That doesn't account for those clients' locations -- one client has more than 170 locations. The customers range from a big business with many locations or a single location. Seaman estimates they're currently monitoring more than 5,000 individual locations.

Codefi's 1ST50K startup competition awards $50,000 equity-free, as well as membership in Codefi, access to venture capital and angel investment networks, business coaching and mentorship, with each winner relocating to Cape Girardeau as part of the 12-month long 1ST50K program.