Recently we had the opportunity to present SnapCheck at Demo Day in San Francisco. We have been working with Envestnet® | Yodlee® before we joined its Incubator, as a way to extend the functionality of our digital checking platform and transform the world of B2B payments. The SnapCheck digital checking platform was built to solve the chicken-and-egg problem that currently exists in B2B payments, the conversion of both the payor and payee simultaneously to a new modern payments infrastructure. Even today, almost 40 years after the passage of the Electronic Funds Transfer Act, 70 percent of B2B payments still happen by paper check, and it's proving difficult for many companies to switch to a less expensive, less labor-intensive process. SnapCheck empowers businesses to move from the paper world to the world of electronic transactions, by solving the chicken-and-egg problem one step at a time. Most high-profile payments innovations, such as Square, Apple Pay, and Venmo, are either focused on facilitating a retail purchase or on making it easier for friends to split the cost of a pizza. But these solutions just don’t work in the B2B world.
How Snapcheck Helps Our Users
SnapCheck gives the payer all the benefits of electronic transactions — safety, security, and speed — and delivers to the payee a digital check in the form of a PDF they can print and treat as a real check or opt-in to straight through processing. We also enable users to avoid all the finance charges that PayPal and credit cards take out. This is also different from a bank's ACH, which requires you to know the other party's account number. We provide the bridge for people who don't want to surrender their account information, or the hassle of trying to manage account information if a payee changes banks. Ultimately, by using SnapCheck, we're able to help payers reduce their costs of not only printing and mailing their checks, but also the soft costs associated with monitoring, reconciling, and reissuing those payments. This gives a 65 percent or greater reduction in their check-writing costs. And for the payee, while we allow them to maintain their old receivables processes, with each transaction they receive a constant reminder that there’s an easier, more secure, and faster way of receiving payments, through streamlined receivables processing.
How SnapCheck Uses the Envestnet | Yodlee Aggregation API
We use the Envestnet | Yodlee Aggregation API for account verification with our Direct to Consumer and Direct to Business systems to make sure the user has proper access to write checks, and we have an option for our partners to do this verification as well. We also leverage the Aggregation API to get transaction information. This means a customer can see their checkbook register through our mobile app or website, and see which checks have been written and cashed. The ability to look in and get that transaction information helps our customers get a better sense of their finances. We can show their current balance and outstanding checks, including where the money on hand and checks written are different, in order to avoid overdrafts. Our latest announcements include the general availability of our direct to consumer and direct to business product, and the availability of our platform to SnapCheck business partners. Finally, we are looking for partners with SnapCheck, in banking, banking technology, mobile wallets, and accounts payable. Financial institutions and their technology providers can use SnapCheck as a service offered to their business clients who want an easier and less expensive way to pay their vendors, subcontractors, or employees. If you offer accounts payable solutions, you can learn more about SnapCheck at our website, gosnapcheck.com.