08 December 2016
Visit aciworldwide.com

Payments start-up Zipmark raises $2m

15 December 2011  |  5151 views  |  1 cheque

New York-based mobile and online payments start-up Zipmark has raised $2 million in a seed funding round led by Village Ventures and Contour Venture Partners.

Zipmark's system works like a digital chequebook. Users connect it to their bank account and then download an app that lets them make payments by creating an electronic representation of a cheque.

The firm's platform accepts payments from any bank, thrift or credit union current account, charging one per cent for each transaction with a cap at $5 regardless of the amount.

The investment round was joined by NYC Seed, High Peaks Venture Capital and the New York City Investment Fund, which helps to run the FinTech Innovation Lab programme.

Zipmark was one of six finalists in the programme last year, enabling it to benefit from exert advice from industry advisers and the chance to show off its technology to the venture community.

Jay Bhattacharya, CEO and co-founder - and a former SVP at Citi Ventures - says: "Our goal is to modernise the chequebook - to reduce the amount of time and money it takes to make a cheque payment, eliminate the possibility for bounced cheques, and take all risk out of the equation for payer and payee alike."

The company claims "overwhelmingly positive" results from a pilot program with New York real estate company Sunshine Suites: after four months, 10% of Sunshine Suites' tenants began paying their bills via Zipmark, significantly reducing payment processing fees for the company.

"Improving the payment and collection process is a huge opportunity for any company that bills its clients, such as real estate managers and utility companies where inefficient collection practices can be detrimental to the bottom line," says Bhattacharya.

Comments: (1)

Brad Rosenthal
Brad Rosenthal - Payment Adviser Pty Ltd - Sydney | 16 December, 2011, 04:35

Maybe this online payments solution will extend the life of the humble cheque/check for the foreseable future. All that is needed now is a digital staple for undelying remittance data.

 

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Fintech start-ups get chance to show off innovations to Wall Street

Fintech start-ups get chance to show off innovations to Wall Street

22 July 2011  |  11021 views  |  0 comments
US Treasury prepares to retire cheques

US Treasury prepares to retire cheques

26 April 2011  |  8604 views  |  0 comments
Americans ditching cheques for electronic payments

Americans ditching cheques for electronic payments

09 December 2010  |  10329 views  |  1 comments

Related blogs

Create a blog about this story (membership required)
Visit contisgroup.comFind out moreVisit VocaLink.com

Top topics

Most viewed Most shared
Guesswork alone can crack Visa card security - Newcastle UniversityGuesswork alone can crack Visa card securi...
7571 views 12 comments | 15 tweets | 27 linkedin
OCC to offer fintech firms bank charter statusOCC to offer fintech firms bank charter st...
7216 views comments | 25 tweets | 15 linkedin
China tops world fintech rankingsChina tops world fintech rankings
7124 views comments | 36 tweets | 30 linkedin
Fed Governor sounds warning on alternative credit scoring dataFed Governor sounds warning on alternative...
6375 views comments | 19 tweets | 20 linkedin
Convenience needed for business banking customersConvenience needed for business banking cu...
5484 views comments | 2 tweets | 3 linkedin

Featured job

Find your next job