5 Canadian FinTech Companies to watch in 2016

By Karen on August 3, 2016

Shopify

Shopify is a Canadian e-commerce company, specializing in web-based stores and point-of-sale services. With 2015 revenues approaching a Quarter of a Billion dollars, it’s clear that Shopify is a market leader. Having started operations in 2004 in Ottawa, Shopify has used its simple, affordable, and user-friendly platform to capture a large percentage of the available market share. Because of its size and user base, many companies have created value-added services, such as drop shipping, or CRM services, that can be easily added to the original Shopify platform. This aspect takes the service far beyond its original scope as an e-commerce platform into a fully customizable e-commerce experience.

VoPay

VoPay is a Vancouver FinTech Startup launching in 2016, that will capitalize on the diverse international culture that can be found in Vancouver, but also across the country. International customers have special needs when it comes to sending money and airtime online, through secure channels. VoPay aims to specialize in the complex financial needs of those wanting to move money and do business across continents. While most Canadian FinTech startups are focusing on making products and services for Canadians, VoPay is targeting the select needs of International Canadians, and doing so very well.

Wagepoint

Wagepoint is a web-based Payroll Management system that provides users with a non-complicated, user-friendly platform. The all-in-one nature of Wagepoint makes it a valuable service for any business. The price is relative to your employee staff. For a staff of 3, a small business would pay only $26/payroll. This price point allows a business to get started at a cost effective rate, and have the cost of the service grow along with the size of its staff. They have a high degree of security and a top level customer service team. With 500+ small businesses signed up for their service, Wagepoint may not be the market giant that Shopify is, but it is growing rapidly.

Mogo

An online loan and loan management service. Mogo provides loans and credit cards, with different application standards and increased flexibility for users, than what customers would typically find through the traditional banking environment. The standards set by the big 6 Canadian Banks, have left the medium-higher risk borrowers with few options to turn to. While Mogo is not looking to lend to risky borrowers as a rule of thumb, their various loan options and adjustable rates, make it easier for almost anyone to find a loan that matches the needs of their personal financial situation.

Koho

Koho is an online bank account, that is focused primarily on the needs of the Millennial user. Koho allows users to manage a bank account, deposit cheques, bill payments and money transfers all for free. Where Koho makes its money is through the actual purchase of goods using the Koho account. Merchants accepting Koho payments, pay a 1.5% fee to Koho in order to facilitate the payment. While this is a cost to the merchant, this rate is a discount to what many merchants pay to accept Credit Cards. The average Koho client is 29.5 years in age and has an annual income of approx. $70,000. By targeting the needs and desires of Canadian Millennials, Koho aims to be an alternative to the lack of differentiation Canadians are feeling within the traditional big 6 banking system. * At the time of this post Koho was still preparing for their public launch.

 

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