New York-based Company Zipmark brought an alternative to mobile payment options by tapping the existing check processing infrastructure to allow its users to make payments simply and safely. Unlike other online payment companies, Zipmark allows users to link their checking accounts to the service thereby eliminating credit card fees.
“Because it uses the check processing network, Zipmark’s fees are low – just 1% of each transaction – and are capped at $5.00, regardless of the transaction amount. The system also uses secure, Check21 compliant digital checks, the goal being to modernize the checkbook,” the company says.
In December, the company raised $2 million in a round led by Village Ventures and Contour Venture Partners, supported by NYC Seed, High Peaks Venture Capital and the New York City Investment Fund.
Zipmark announced February 21st the launch of its new developer program and Biller API allowing businesses and app developers access to a new payment system. Companies this early already made their pledge to support this new system including co-working space Sunshine Suite, payment solution provider Singular Payments and mobile invoicing provider InvoiceASAP. They also announced that they would launch a new iPhone app that will let users pay directly using QR codes.
Jake Howerton and Jay Bhattacharya founded Zipmark in 2010.