Growth in merchant accounts that translated into more credit card transaction-processing fees helped Canadian merchant processor VersaPay Corp. boost second-quarter revenue.
The Vancouver-based merchant processor on Aug. 29 reported total revenue of C$3.8 million ($3.9 million U.S.) for the three months ended June 30, up 22.6% from C$3.1 million during the same period last year.
Transaction-processing fee revenue rose 24.1%, to C$3.6 million from C$2.9 million. Fees associated with the company’s VersaCard, electronic funds transfer and electronic bill-payment programs produced C$72,587 in revenue, up 38.7% from C$52,319. VersaCard provides VersaPay customers with a card specifically for business-to-business wholesale payments online.
Despite incurring fees associated with the company’s conversion to International Financial Reporting Standards this year and some one-time expenses, VersaPay’s increased revenues and cost controls helped boost earnings before interest, taxes, depreciation, amortization, listing expense and share-based payments to a $200,000 loss compared with a $500,000 loss in the second quarter of 2010, VersaPay CEO Bill McGill noted in a press release.
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