Zipmark, a company that allows businesses to send and receive digital checks, is working with the processor Vantiv Inc., potentially bringing more than 400,000 merchant relationships to Zipmark's money transfer platform.
Zipmark allows both consumers and businesses to link checking accounts so money can be immediately transferred for payment. Zipmark creates the digital check for users to submit for settlement at the participants' banks. The startup targets recurring payments, such as rent, utilities and storage.
The relationship will focus on educating small and medium-sized businesses to the electronic payment methods they can use as alternatives to mailed paper checks.
Zipmark charges a 1% fee and caps its fee at $5 per transaction to make its pricing more appealing than wires.
"Small and medium-sized billers and merchants have to compete in an omni-channel world and face many of the same challenges as larger businesses," says Jay Bhattacharya, CEO of Zipmark, in an announcement of the Vantiv relationship. "Vantiv and Zipmark are focused on ensuring that any business has access to the best payment technology at affordable prices in order to help them stay competitive, connect with their customers and thrive."
Vantiv, based in Cincinnati, Ohio, used to be Fifth Third Processing Solutions. It changed its name ahead of its IPO in 2012.