Zipmark Wants to be Your Digital Checkbook

Mobile Payments is expected to be one of the key areas that is likely to see various start-ups compete with established players. We recently covered how Stripe, is a developer friendly way to integrate payments into your applications with less fees as compared to Paypal. Another startup, New York-based Zipmark aims to be your digital checkbook via which you can send and receive money.

The Zipmark service is currently available by invitation only but has gained significant mindshare by implementing a check processing infrastructure around the Check21 Act, that brings down the costs associated with each transaction. The Zipmark service links directly to your real bank checking account, so you do not need to transfer funds first to an intermediate account in the cloud. The funds are cleared next day and the transactions appear directly in your online account as digital checks. Zipmark charges 1% of the transaction amount as fees and this amount is capped at a maximum of $5.00.

Zipmark has launched its Biller API that will be provided to partners to implement the payment processing system in their applications. It has already signed up 5 partners that have integrated the API. Currently the API is available by invitation only. Some of the partners include Sunshine Suites, a provider of co-working space in New York City and UnitConnect, a proper management software company. The API is not immediately available to developers and you need to apply for an API key.

We believe that Zipmark can get a good traction because of its simplicity and the fact that no intermediate account is needed to hold the money. The key challenge is going to be not just from other start-ups in the payment space but also large partners integrating its Biller API into their systems.

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