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Tuesday, August 3, 2010
The Pitch
CheXout Systems opens gates to mobile payments
By Lynette F. Cornell
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MHT's Doug Banks: Frugal startups get creative with office space
CheXout Systems Inc.
Headquarters: Ashby
Phone: 978-878-0205
Email: brian@chexoutsystems.com
URL: www.chexoutsystems.com
Year founded: 2009
Employees: 2
CEO/Founder: Brian Foster
In the company’s own words:
“CheXout Systems sells software-as-a-service (SaaS) solutions, mobile software and strategic consulting services that facilitate mobile payments at physical merchants. Just as credit card gateway systems allow merchants to accept many different credit cards from their customers, the company provides a gateway for online and mobile payment solutions. The company specializes in the design, development and implementation of mobile technologies that surround enterprise software systems.”
The background:
Brian Foster, founder and CEO, founded an IT web development and consulting firm, Fostered Solutions Inc., in 2003. Foster’s co-founder, Oded Shoshany, serves as the company’s senior vice president of sales and business development. He is also an advisor and investor for the company. Both have been independent consultants for many years in the areas of IT, financial services and banking. Foster’s previous clients include ADP Inc., the state of Georgia’s division of investment services and Mellon Financial Corp.
The company:
Last September, the Connecticut Technology Council named CheXout Systems among its Companies to Watch in Connecticut at the Innovation Pipeline Awards. In March, the company was voted as a company to follow in Mass High Tech’s Startup Watch. The company was also chosen as one of the top 50 businesses in Perfect Business’ Top 50 Perfect Pitch 2009 competition.
About the technology:
CheXplit is the first product offered by CheXout Systems Inc. and has been designed to allow restaurant patrons to review, calculate and pay for their meal on their smartphone, without the assistance from a waitperson. Foster said the features of CheXplit will increase table turnover and customer service at the restaurant and help reduce credit fraud by making more secure mobile payment options available to the consumer. Merchants can activate and install the CheXplit software within their existing Point of Sale (POS) so their customers can pay with their preferred mobile payment option. With CheXplit, diners are given a flyer with a unique name or number for their table and instructions on how to review their bill. When they are ready to pay, diners browse to the payment site on their mobile phones and choose from payment options such as PayPal or mPayy to pay for their meals.
The pitch:
The company is seeking $25,000 to $1.2 million. Depending on the level of investment, it is looking to increase development efforts so that its software is compatible with more POS and payment solutions, which Foster said is critical to obtaining more rapid adoption. The company would also add at least one full-time executive to lead the company and a dedicated, experienced salesperson to help the company gain traction. The company has a pending patent to protect the check splitting and the integration with multiple POS systems and would use a portion of the funds to follow up on the application. Current efforts to gain traction in the restaurant industry include an offer of heavily discounted POS software licenses for selected restaurants that agree to use CheXplit.
The market:
The company, which is not currently profitable, intends to tap the $500 billion restaurant industry market, based on estimates from the National Restaurant Association.
"The Pitch" takes a look at a company, its executives and its technology-related business plan. To nominate your company for The Pitch section of Mass High Tech, please fill out the submission form.
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