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Zipmark: Financial Tech Startups Pitch Their Investment Worth – American Banker Article

Financial Tech Startups Pitch Their Investment Worth – American Banker Article.

Great write up on Zipmark ahead of our funding close.


Google’s Daily Deals + Google’s Mobile Payments + Location Tracking

This Easter weekend, I watched Groupons that I redeemed at retailers and restaurants, logged by the merchant in 3 different ways: 1. Paper lists (ugh) 2. iPod touch app that the nice waiter would not let me see. 3. Jedi mind redemption trick (they looked at my iPhone display and just nodded).

As our friends at Google ready their competitor to Groupon and its cavalcade of imitators, one must consider some of the interesting synergies and opportunities that a larger organization like Google can create that a Groupon-type startup needs to broaden out to cover.  The world’s recent discovery over Android location tracking for their ad network is an obvious competitive advantage.  I don’t know what all the excitement is about, did you NOT think they were going to do that?   So Google can target nicely and hey, they own the OS that is on most smartphones in the demos where daily deals show most traction.

Second, and more interesting, is what Google is doing with Citi on mobile payments and mobile wallet using NFC.  If Google can turn Android phones into the deal sign-up, deal purchase and deal redemption tool, they have something.  Assuming Google can scale deal users to Grouponian customer file size (and who would bet against that?), it’s ultimately going to be a battle pitched at the retail till.  The service that makes it easiest to process, track and get paid for participating merchants will drive the greatest merchant participation.  Merchant participation is what drives the daily deal to the forefront of our family’s breakfast conversation.

“Did you see, [Insert daily deal site] has [Item, service that you would not have bought otherwise] for [Insanely low price]?”

“I already got one, why don’t you buy one too? I love that place and we pass by it all the time.”

Google’s Daily Deals Service Emerges to Take on Groupon: Tech News and Analysis «.

Square CEO Blasts VeriFone over Mobile Payment Security Allegations Mobile Marketing Watch

Square CEO Blasts VeriFone over Mobile Payment Security Allegations Mobile Marketing Watch.

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.

Zipmark Goes on Bloomberg TV with Pimm Fox

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.

YouTube – Bhattacharya Says Zipmark Fees Lower Than Card Company.

Zipmark Makes P2P Real Time – American Banker

American Banker/Bank Technology News, put us on their “10 Tech Companies to Watch in 2011”:

Zipmark Makes P2P Real Time

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.

Who’s Driving Mobile Payments? (Hint: Some Are Barely Old Enough to Drive) (via GigaOM)

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.

Who's Driving Mobile Payments? (Hint: Some Are Barely Old Enough to Drive) Companies looking to attract mobile-payment customers ought to be looking at 18- to 35-year-olds, according to a national study released today. Hitachi Consulting and the Bank Administration Institute (BAI) conducted the research, which shows that the “millennial” generation will likely drive mobile payment adoption in the coming years. Not only does the study help define who’s comfortable with payments on the go, but also what features are impor … Read More

via GigaOM

Schwab Needs to Catch Up In Mobile Apps

Schwab Needs to Catch Up In Mobile Apps – TheStreet

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.

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