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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