There are a lot of payment startups out there today. There are consolidated payment solutions and mobile payment solutions coming out of the woodwork. None of them though are focused on convenience and safety, the way that Memphis startup Paytopia is.
We originally met Mike Hoffmeyer CEO and founder of Paytopia a few weeks back at 48 Hour Launch in Memphis. Hoffmeyer, like many others in Memphis isn’t just a local founder and CEO but he regularly gives back to the local startup community by mentoring, helping with pitches and pitching in at events like 48 Hour Launch. In fact when we met with him at our office hours in Memphis we were talking about the the startups he is helping at ZeroTo510 a medical device and biotech incubator in Memphis.
Hoffmeyer, a graduate of the most recent class at Seed Hatchery, loves helping other startups and of course working on Paytopia.
Hoffmeyer spent most of his career in the payment business. He worked with credit card processing and ACH processing (direct debit and checking account payments). Over the years he figured there had to be a better way then filling out these long, sometimes un-secure forms with all of your important information. Hoffmeyer set out to develop a system that was both easier and faster. That system is Paytopia.
In a nutshell Paytopia works like this.
If you buy something at an online merchant that uses the Paytopia system you will only need your email address and Paytopia pin. From there the merchant will ping your bank via the Paytopia system. Paytopia will send you a message with an authentication code for that transaction either in-app or SMS. You’ll then enter the authentication code into the transaction and voila, paid via your bank account.
Paytopia effectively takes a big bite out of payment fraud in the online environment by having a two step authentication system. The only way that a Paytopia customer could be defrauded was if the person committing the fraud had both the customers Paytopia pin and the authentication code delivered by app or SMS message. If someone tries to make a fraudulent Paytopia purchase the worst that can happen is the customer will get a bunch of text messages with authentication codes. Without that code, the fraudster can’t finish the transaction.
Check out more about this great new way to pay in the video below:
Find out more about Paytopia here at Paytopia.com
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