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SnapCheck

Transforming business payments, saving $50B annually

USA, California
Market: Financial services
Stage of the project: Operating business

Date of last change: 12.11.2019
Min investment
$  50.000
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Total required
$ 500.000
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Idea

SnapCheck empowers businesses with greater efficiency, transparency, and protection in their B2B payments without requiring back office process changes of themselves or their vendors and suppliers. We can save organizations over 65% on their costs and reduce their fraud risk by 90% or more.
Paper checks still dominate B2B transactions (and have even gained market share from 2013-2016), costing businesses $50 Billion in fees and costs, and subjecting them to $20 Billion in fraud losses annually. Now there's a better way!

Current Status

SnapCheck is currently operating, serving thousands of businesses for their business payments needs. We have over 25,000 users signed up for our platform and are moving upstream to enable more and larger enterprises through our platform integration.

Over the past 5 months, from platform clients, we've seen an increase of 3.8x in transaction count and 8.7x growth in transaction volume.

Market

18 Billion paper checks are written annually in the US, worth over $26 Trillion. Most are generated by businesses, who use checks for 70% of B2B payments. The US market alone represents a TAM of $17 Billion for SnapCheck, with a global TAM of $37 Billion.

Problem or Opportunity

B2B payments are trapped in the dark ages (dominated by paper checks) and cost business over $50 Billion in costs and $20 Billin in fraud annually.

Solution (product or service)

SnapCheck’s digital payments platform gives businesses a universally accepted digital payment form that cuts costs by 70% and fraud risk by an additional 90% over any other payment type, while providing greater payment visibility and control than any other payment form today. Through the simple and human-centric user experience of a digital check, coupled with blockchain technology, SnapCheck drives payments infrastructure modernization, blockchain adoption, and payments digitization on a global scale.
The SnapCheck platform has been vetted by Bank of the West and BNP Paribas, and is slated for pilots with major US banks this year.

Competitors

Competition can be broken down into 3 primary classes. (1) Legacy paper checks, which still dominate B2B payments. SnapCheck’s advantages include: cost, fraud protection, convenience, speed of delivery. (2) Digital check providers (e.g. Checkbook.io, ZipMark). SnapCheck’s advantages include: platform strength and depth, fraud protection, go to market strategy, defensible IP. (3) Electronic payments platforms (e.g. PayPal, ACH). SnapCheck’s advantages include: ubiquitous acceptance, low adoption hurdles, cost savings, minimal behavior changes. SnapCheck also benefits from natural, multi-layered viral and network effects to drive adoption, create lock-in, and fend off competitors.

Advantages or differentiators

SnapCheck's advantages stem from the strength of our platform over the competition, which has allowed us to form strong strategic relationships with key players in the banking world including: DXC (owner of the core banking system for the top 40 global banks), Temenos (core banking provider for 800 banks), Q2 (enables payments for 10M end users).

Our platform wins out on simplicity and the power of our fraud protection tools.

Finance

Revenue is generated primarily from per transaction fees. Fees are negotiated on an enterprise-by-enterprise basis, with a starting rate at $1 per payment.

Therefore, the primary driver for our finances is the number of transactions sent through the SnapCheck platform.

Over the past 5 months, from enterprise clients, we've seen a 3.8x growth in transaction counts.

Business model

Business Model
SnapCheck’s primary revenue will come from per check fees (tiered pricing) charged to check writers. Receivers can pay for value added services such as check validation, funds guarantee, and expedited settlement for 1% of check value.

Go-To-Market
Trust and broad reach are the keys to adoption. SnapCheck gains these by partnering with banks to efficiently enroll and serve accountholders. Bank pipeline: HSBC, Wells Fargo, Bank of the West, BBVA. Payment tech pipeline: Jack Henry, Fiserv, ACI, Temenos. Blockchain pipeline: R3. SnapCheck gains additional reach by working through the complementary tools and services that businesses use to manage their finances, such as Quicken, Xero.

Money will be spent on

SnapCheck has built a robust pipeline of clients. We are currently resource constrained on moving the pipeline to market faster. Therefore, resources will be spent on customer-enablement from engineering, professional services, client management perspective.

Offer for investor

SnapCheck is seeking a small bridge round of $500k to further enhance customer development ahead of a Series A fundraise in 2020.
Terms TBD

Team or Management

Risks

Business payments are currently antiquated and ripe for disruption. Therefore, the biggest risk to SnapCheck is the entry of new competitors or the pivoting of incumbents to our space.

Incubation/Acceleration programs accomplishment

Graduate of the Yodlee YNext incubator
Graduate of INV Fintech accelerator
Graduate of KPMG Digital Village accelerator

Won the competition and other awards

Best Digital Checking Solution from CorpToday 2019
Best Payments API from API:World 2018
BBVA Startup Walk of Fame 2018
Money2020 Featured Startup 2017
Future of Money & Technology Startup Winner 2017
KPMG Top 20 Global FinTech Startup 2017
Bank Innovation Top Innovators to Watch in 2017
CIO Review Top 20 Payments Tech Provider 2017
RedHerring Top100 Finalist 2017
Celeriti Hack-the-Core Winner 2017
BNP Paribas International Hackathon Winner 2015

Invention/Patent

Patent pending.... application number: 15/077,938

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video