VizyPay Revenue & Funding (2023)

VizyPay generated $21.5M in revenue in 2023.

VizyPay generated $18 million in revenue in 2022, up from $12.7 million in 2021. In its founding year of 2017, the company recorded $96,000 in revenue. Mac Nab told Latka in February 2023 that he expected the company to reach $27 million to $30 million in 2023, representing projected growth of roughly 50 to 67 percent over 2022 at the high end. The company subsequently reported $21.5 million in 2023 revenue, reflecting actual growth of approximately 19 percent over 2022.

VizyPay served more than 10,000 clients across the United States as of the February 2023 interview, growing to approximately 13,000 clients by 2024. Mac Nab noted that the hardware count at those locations exceeds the client count because some merchants operate two or three terminals or POS units at a single location.

On pricing and contract terms, VizyPay offers three options. Merchants who purchase equipment outright, either upfront or through an interest-free payment plan, operate on a month-to-month basis with no long-term commitment. Merchants who accept a company-contributed POS system valued at $2,000 to $3,000 sign a 36-month term. The cancellation cost under that term is the return of the equipment plus half its retail cost, compared to cancellation penalties of $15,000 to $25,000 that Mac Nab said competing providers charge.

VizyPay does not charge merchants a percentage revenue share. Instead, the company earns an average of approximately 58 cents per transaction across all clients and programs. The average transaction ticket size is $25 to $35. The interchange baseline cost that all card-accepting merchants pay ranges from 1.8 percent to 2.5 percent, and VizyPay profits on the spread above that baseline depending on which of its three programs a merchant selects: cash discount, surcharging, or interchange-plus pricing.

VizyPay makes money by earning the spread between the interchange cost of card acceptance and the rate included in a merchant's pricing through one of three programs. Mac Nab explained that the company's cash discount program, which embeds processing fees into the merchant's product pricing and uses technology to isolate and remove that cost at the point of sale, is the most profitable for VizyPay and the most savings-generating for the merchant. Surcharging, which adds the card cost visibly at the register, falls in the middle. Interchange-plus pricing, where VizyPay charges a markup above cost, is the least profitable for the company.

Across all programs and clients, VizyPay earns approximately 58 cents per transaction on an average ticket of $25 to $35. The company processed close to 60 million transactions in a single recent month as of February 2023. Annual payment processing volume was $1.7 to $1.8 billion in 2022, and Mac Nab projected the figure would exceed $2 billion in 2023. For context, the company processed a cumulative $2 billion in its first four years combined (2017 through 2020), a volume it expected to surpass in 2023 alone.

Gross margin was 57 percent as of 2024. The company contributed $2,000 to $3,000 in POS equipment to qualifying merchant locations under its equipment placement program, with approximately 90 percent of clients using lower-cost smart terminals rather than full POS systems. Affiliate marketing spend reached $1 million in 2024. Profitability was not explicitly discussed in the interview beyond the gross margin figure. The company was bootstrapped throughout its history, implying it has been self-funding operations from revenue, but net income or EBITDA figures were not stated.

VizyPay employed 130 people as of the February 2023 interview. Mac Nab noted that more than 95 percent of staff came from outside the payments industry, a deliberate hiring choice he made because he believed people trained from scratch would operate more ethically than industry veterans accustomed to practices he described as exploitative. Training new hires from outside the industry takes six to nine months.

The workforce was 63 percent minorities and 27 percent women at the time of the interview. By 2024, total headcount had decreased to 95 employees, while the independent contractor sales force had grown to 125 sales representatives. Mac Nab described a three-channel sales structure: W-2 employees focused on rural America, 1099 independent contractors who are non-exclusive and boots-on-the-ground, and an inside sales team serving markets without a physical field presence.