The National Technology Festival 2014 saw the launch of a new payment startup called Knox Payments. Two Richmond area entrepreneurs - Thomas Eide and Tommy Nicholas – introduced Knox Payments in front of an audience of over 10000 investors, entrepreneurs and others. The startup has received $900K via angel investors in Virginia.
- Similar to Balanced and Dwolla, Knox Payments allows merchants to accept payments directly from their customer’s bank accounts. These transactions are known as ACH payments.
- Knox Payments hopes to stand out with an extreme focus on speed.
- Dwolla, with all its benefits, suffers from a horrifying onboarding problem: Signing up for Dwolla essentially feels like joining a bank — they even need your social security number.
- That barrier to entry makes it difficult for merchants to encourage non-Dwolla users to try the service.
- Knox Payments, on the other hand, doesn’t even offer user accounts. It is simply a utility for fast checkouts.
According to Tommy Nicholas, cofounder of Knox Payments, his service enables users to make ACH transactions without having to know your account and routing number. “Now a business can put our button on their website, and when people go to pay, they can choose to pay with their bank,” he said. “Our thesis is around making this process way faster and reducing keystrokes. You can go through an online checkout in three clicks. We only charge $0.18 per transactions over $2.”