Great write up on Zipmark ahead of our funding close.
The developing over war of words Jack Dorsey and Doug Bergeron is a troubling move. Strategically, it costs Verifone nothing to suggest the risk. It’s also a problem that can only be solved by Square implementing costly end-to-end encryption.
If they choose to employ a marketing strategy of superior security in mobile, that can be a meaningful position in the market similar to the way Verizon is the serious man’s wireless network no matter what AT&T, Sprint or T-Mobile do.
Had some fun talking to Pimm Fox on Bloomberg TV about Zipmark. This guy is a total pro, and caught on to it straight away. I like the little Bloomberg bio feature and the split screen of the product. I wish they had asked me for HD b-roll. In any case, this is high-class startup PR.
American Banker/Bank Technology News, put us on their “10 Tech Companies to Watch in 2011″:
There are a couple of major drawbacks to most mobile peer-to-peer payment systems in the market, including the delay between the time the sender initiates a payment and when the receiver can spend the cash. A new startup from Mobile Money Ventures co-founder Jay Bhattacharya and partner Jake Howerton uses 2D barcodes and the digital check rails to make P2P payments real time.
The payment platform’s QR code-dubbed a Zipmark-generates a secure, encrypted token. Using an iPhone or Android app, a sender generates a unique Zipmark. The recipient captures that Zipmark using another iPhone that has the Zipmark app installed. The exchange of the Zipmark creates a link between the two parties, allowing them to send and receive money from their enrolled checking accounts. MyEcheck is Zipmark’s back end, sending the money via ACH transfer. The key to managing risks, though, is that Zipmark uses funds verification tools to make sure the money is in the sender’s account before the transaction is authorized.
But even bigger than the person-to-person use case, Bhattacharya envisions billers using Zipmarks to let customers pay bills instantly. His ideal example? The monthly maintenance payment on his condo. Rather than write a check each month, the condo association could send out a Zipmark on its invoices. Tenants that have the app could use it to instantly remit the payment, cutting down paper processing and float time for billers. This use case also appeals to Bhattacharya’s professional legacy. “I’m a credit card guy. I don’t like acquiring customers, I like enrolling huge chunks of customers,” he says.
Millenials are proving to be the demographic segment that will drive mobile payments…in research. I’m not disagreeing with the findings here, but let’s keep an eye on some key personas that could find mobile payments to be of interest, because it solves real-life problems.
Small businesses are at the top of my list here. Mobile payments and invoicing should be top of mind for business that collect revenue onsite via checks on delivery, cash or costly remote card processing solutions if they take cards at all. Mobile payments also gives the ability for partial payments on completion of a project or after inspection of completed work. These behaviors do not exist yet, but I’m sure there are many a home-delivery company who would like to collect payments through their field agents.
Schwab Needs to Catch Up In Mobile Apps – TheStreet http://ow.ly/2yjoM
This is a good article about how even if you have a headstart in online, mobile can be a bear. The question is when will customers start leaving due to lack of mobile services.