Velo Payments Buys YapStone to Form Unified Payment Management System

Velo Payments is acquiring YapStone, a leading payment processing platform in the short-term and vacation rental industry.

The companies have entered into a definitive merger agreement, and the acquisition process will begin this quarter, subject to regulatory approvals and closing conditions, according to a Wednesday (Aug. 16) press release.

YapStone is known for its payment solution, VacationRentPayment, and its vacation rental payment processing, according to the release. By acquiring YapStone, Velo Payments intends to merge its own complex disbursements platform with YapStone’s established payment facilitator (PayFac) and money services business (MSB) licensure.

“YapStone shares our passion for building thoughtful and customer-centric solutions that reduce the complexity of payments, and I am delighted for the team to join us with a singular shared mission,” said Velo Payments CEO John Partridge in the release.

The alignment of vision and technology will pave the way for the development of next-generation eCommerce and marketplace business models, the release said. A key promise of the merger is the delivery of seamless global payment experiences for businesses and individuals. Leveraging technologies such as Velo’s open banking platform, the cost and complexity of payments, especially across borders, will be reduced for both Velo Payments and YapStone customers.

YapStone CEO Michael Orlando said in the release he sees this acquisition as an opportunity to expand into other marketplaces.

Once the acquisition is finalized, Velo Payments and YapStone will provide a unified advanced global payment management system, according to the release. This system will be built on open banking, agnostic rails and fraud prevention.

The move comes as the short-term rental market is seeing guests stay longer at their rentals, due in part to their ability to work remotely.

“Millions of people remain flexible about where they live and work, and we see this reflected in our bookings,” Brian Chesky, co-founder and CEO of short-term rental platform Airbnb, said Aug. 3 during that company’s quarterly earnings call.

In addition, the share of Airbnb’s business made up of monthly stays rose from 13% before the pandemic to 18% in the second quarter.

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