HyperWallet Systems

Founded in 2000, Canada’s HyperWallet Systems has targeted three markets: auctions, financial institutions, and large organizations. Existing partnerships and service agreements provide exposure to more than two million Canadian credit union members and one million auction traders. The company has gained a limited following on eBay with about 2,000 lots listing it as a payment option as of Sept. 10, 2002, up from just 12 lots 15 months ago .

User fees are structured similarly to PayPal with the recipient (usually a small online merchant) paying for the transaction. However, unlike PayPal which has a single fee schedule regardless of where the funds came from, HyperWallet charges more for credit card-funded payments compared to those funded with deposit balances (see Table xxx). Unlike PayPal, HyperWallet charges a C$0.75 “cash out” fee to withdraw funds from the account. It also charges C$0.40 to C$1.00 for companies to send remittances to consumers (the C$0.75 cash-out fee is waived for these). Finally, routine person-to-person transfers carry a C$0.25 fee to the sender, along with the C$0.75 cash-out fee for the recipient.

Table 8

Merchant Cost to Receive HyperWallet Payments

Source: Company, 8/02