Merchant Payment Startup Digitzs Turns To Crowdfunder

A new merchant payment service provider is looking for funding, and this time the company is seeking financial backing through P2P lending site Digitzs revealed Thursday (May 7) that it is launching its Crowdfunder campaign to raise $500,000 to complete its payments solutions suite to get ready for its launch later this summer.

The startup, founded by Laura Wagner and PayPal’s first CFO David Jaques, has already earned attention from investors. One of its most high-profile backers is Kevin Harrington, a pioneer of the As Seen On TV movement and one of the original Sharks on the ABC reality show “Shark Tank.”

“I’ve processed billions in card payments for my infomercials,” Harrington said in a statement. “Becoming an equity owner in Digitzs is my way of getting even on all of those fees (and more). Digitz has the team, the traction and the technology to be the next big disruptor in the trillion-dollar payments space.”

But it’s not just the backers that have influence in the payments innovation space. Co-founder Wagner has a rich history of payments solutions development, and was part of the team that launched one of the first gift cards ever, made for Neiman Marcus. Later, she went on to develop a payment solution at McDonald’s, allowing the franchisees to accept debit cards at no cost, reports said.

The company provides next-day payment for merchants and allows stores to set their own Visa or MasterCard fees at between 0 and 3 percent.

According to Wagner, the company chose after comparing multiple platforms. Its launch on the platform will allow accredited investors to secure an early stake in the startup with a minimum of $10,000 in backing.



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

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