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Summary:

Twitpay, a service that facilitates payments by users who publicly state who they want to send money to on Twitter, has been bought for $100,000 by investors led by Acculynk CEO Ashish Bahl and Morgan Keegan investment banker Keith Meyers, according to the Atlanta Business Chronicle.

Twitpay, a service that facilitates payments by users that publicly state who they want to send money to on Twitter, has been bought for $100,000 by investors led by Acculynk CEO Ashish Bahl and Morgan Keegan investment banker Keith Meyers, according to the Atlanta Business Chronicle. The exclusive acquisition story is behind a $59 paywall, but some details are available in an accompanying blog post.

The new investors reportedly plan to invest $1 million in product developing and marketing. They will initially focus on raising money for charities, but are also looking to expand to other products and other social networks besides Twitter.

Twitpay, which launched a little over two years ago, currently directs users to PayPal to actually settle their debts but has also apparently built its own proprietary payment system. From the ABC blog post:

Charities post — or “tweet” — a request for donations. To make a payment, the donor re-posts — or re-tweets — that message. Doing so authenticates a transfer of money from the donor’s account to the nonprofit’s.

Twitpay keeps, on average, 5 percent of each transaction and the nonprofit gets its money within 72 hours. Since both the donor and the nonprofit are registered on Twitter, and the donor is additionally authenticated by Twitpay, charge-backs should be less than 5 percent.

Though there are plenty of other ways to donate money that are at least as easy as a tweet, there may be something about announcing to the world that you’re supporting a good cause. Making donations more accessible has been highly effective of late. For instance, text messaging to give $5 or $10 to Haiti earthquake disaster relief has raised more than $35 million, according to the Mobile Giving Foundation.

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  1. This is a great story to hear! A Startup Weekend company selling for a greater good as well as truly creating some substantial value!

  2. Twitpay Sells for $100K, Will Be Used for Charity Fundraising | slickr.info Friday, February 19, 2010

    [...] Twitpay, a service that facilitates payments by users that publicly state who they want to send mone… [...]

  3. PayPal Wants to Hitch its Wagon to The Social Train – GigaOM Thursday, February 25, 2010

    [...] to Twitpay — a service that allows users to send payments via Twitter and was recently acquired (after failing to gain much traction) — as an example. PayPal has been trying to open itself [...]

  4. Is the Twitpay acquisition good for Atlanta? « Rob’s Blog – Technology, Atlanta, Startups and Stuff Thursday, February 25, 2010

    [...] Twitpay was founded about 15 months ago at Atlanta Startup Weekend 2, and was recently acquired for $100k (and an additional $1 million committed to move Twitpay forward as a non-profit fundraising [...]

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