AdvicePay, a payment processing platform created specifically for financial advisers, has launched services in the US.

AdvicePay was developed by financial planning entrepreneurs Alan Moore and Michael Kitces, who also co-founded the XY Planning Network.

The platform was launched in beta mode in 2017 to XY Planning Network’s members. In November last year, it raised $500,000 of seed funding.

The new platform enables advisers to bill and receive financial planning fees directly from a client’s credit card or bank account through automated clearinghouse, while maintaining client privacy through data encryption.

The solution also offers users a portal to directly enter their payment information, review invoices and payments, as well as confirm billing changes in order to help them meet RIA custody norms.

Kitces said: “As financial planning looks to expand its reach beyond its traditional affluent clientele that pay for services via assets under management (AUM), and towards a fee-for-service model to reach new markets, advisers need a payment processor that can facilitate getting paid financial planning fees in a compliant manner.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In addition, advisors in the past have struggled to compete with the AUM model when using retainer fees, due to the lack of payment automation and the hassle of asking clients to write paper checks. AdvicePay provides an easy alternative solution,” Kitces added.