HomeATM, the innovative, emerging online payment processor announced today that it closed a Mezzanine financing round.
The capital raise was led by one of the founders of Mamma.com.
Following three years of research and development, and spending in excess of $2M, the company now owns one ISSUED PATENT and has six patents pending.
Michael Kron, a Montrealer with extensive Internet deal experience, co-founded Mamma.com. Kron spearheaded the financing in order to acquire intellectual property rights in the person-to-person money transfer business from BioBank LLC.
"Having reviewed hundreds of business plans since selling Mamma.com, this project stands out for its global reach and necessity. It is exhilarating to enter the payment processing world with revolutionary technology that will reshape money transfer over the internet," said Kron.
According to Mr. Kron, E-commerce has increased exponentially in the last 5 years, creating a demand for safer payment solutions. HomeATM stands to become the dominant player in on-line payments. The media has been reporting increased use of phishing techniques by criminals to defraud the general public. Rampant abuse of credit card fraud and ID theft on the internet is a compelling reason to adopt the HomeATM technology. Kron concluded by stating that HomeATM stands to challenge PayPal as an e-commerce leader within the next 5 years. HomeATM's person to person money transfer mechanism is due to garner a great deal of attention in the migrant worker landscape, traditionally dominated by Western Union and MoneyGram.
Sources close to the company have categorized the investment as significant and Kron has recruited top tier senior management, including the patent holder, to pursue this exciting and inevitable evolution in payment processing. The move is perceived to be a step towards strengthening the company to attract an institutional financing round in anticipation of an IPO.