About DivDot

Location: Victoria, BC, Canada

Year Founded: 2018

Vertical: Finance / Accounting

Employees: 1 – 10

Website: DivDot

Social Media:

Problem

Despite a clear transition in the North American payments environment towards electronic payments in the consumer realm, businesses are still heavily reliant on manual, paper-based processes. Cheques remain the preferred payment option among an overwhelming number of small businesses in Canada and the U.S., due to the lack of simple, cost-efficient payment methods to process high-value transactions. Among these burdens are:
– Interact e-Transfers have a transaction limit of CAD 10,000
– Credit card payments result in high percentage fees (between 2.9% and 4.4% on average)
– Wire Transfers are cumbersome and overly expensive ($14 to $80 and more per transfer)
– ACH file upload to the banks are difficult to reconcile and time-consuming (Transaction info must be converted and uploaded as a text file or spreadsheet → manual and error-prone)

Core Benefits

DivDot is a payment platform that enables businesses to send and receive no limit payments for a flat fee – and makes it as easy as an e-Transfer. With DivDot, businesses can collect money from customers, pay suppliers, set-up recurring transactions and move money between internal accounts at different banks – all in one dashboard. It simplifies and automates businesses’ entire payment cycle from payment initiation to reconciliation:
– Onboard suppliers via email, no collection of routing information required
– Import invoices from your accounting software
– Include payment links in invoices you send to your customers
– Customers and suppliers authorize payments directly via single bank sign-in
– Payments are deposited via direct bank-to-bank transfer within 48h or less
– Custom bank statements allow for easy reconciliation
– Real-time tracking of payment status, like FedEx for payments

The software is accessible through a web application as well as API for enterprise customers wanting to build a custom front-end and embed DivDot into their own internal financial systems.

Our software combine the robustness of the banking system with the simplicity of an e-Transfer:
– We built the software and payment engine entirely in-house – we own the IP of the technology
– We do not license or use any 3rd party services for the core money transfer processes
– Our partnership with BMO enables us to process payments between any Canadian bank or credit union at bank-grade security
– Transactions are processed via an Electronic Fund Transfer (EFT) from the sender’s bank account into the recipient’s account (bank-to-bank transfers)
– DivDot is an officially registered Money Services Business regulated by FINTRAC Canada

Ideal Customers

Consumers (B2B) 

Milestones

Sep, 2019: Launched DivDot
Dec, 2019: Closed initial pre-seed round at $146,000
Feb, 2020: Launched sending money feature
March, 2020: Douglas Magazine Award “Ten To Watch”
June, 2020: Oversubscribed funding round to $500,000
June, 2020: Moved on to round 3 of New Ventures BC competition as a top-10 company
July, 2020: Processed $11.2M with over 30 customers