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.
