Zipmark Inc. is taking its application programming interface for accepting digital checks and adapting it as a mass payment option to its business clients. 

While the receivables product continues to grow steadily, "we kept coming across businesses that had the reverse problem, which was payables," says Jay Bhattacharya, CEO of Zipmark.

Zipmark Deposit allows merchants to send digital check payments to a group of recipients. Funds arrive in the recipients' bank accounts usually in one day.  

"Technology marketplaces pay out suppliers with paper checks. They print thousands and thousands of checks every month," which isn't necessary in the digital age, Bhattacharya says.

Crowdtap, a crowdsourced blogging and research marketplace, has already deployed Zipmark Deposit to pay its writers as a faster and less expensive alternative to sending paper checks by mail.

Zipmark charges most businesses 50 cents per transaction.

"Marketplaces are finding this a great replacement for paper and even for PayPal," says Bhattacharya. "A lot of people like to be paid directly into their bank account which makes the payment more efficient and cuts down the time to receive the funds."

When a merchant sends payment to a recipient for the first time, the recipient is notified by email. The recipient then registers by linking a bank account to receive the funds.

Because Zipmark sends money directly to and from user's bank accounts, Bhattacharya says, the mass pay product is more applicable for more users.

Dwolla launched a mass payment feature in October 2012 to elevate its service beyond person-to-person payments. And in November 2012, Tipalti began offering an automated mass pay system for its international clients. 

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