- Participated in notable accelerators, including Draper University and Berkley IAG/Growth Circuit; Growth Circuit invested in the company directly
- Strategic partnership with Cashin, a virtual Bitcoin ATM allowing customers to purchase Bitcoin over-the-counter
- Partnerships with leading cryptocurrency wallets, such as Arkane Network
- Relationships with PoS device distributors and retailers to expand access to GatePay payment services across various verticals and physical locations
- Total Round Size: US $1,000,000
- Seed :
- Minimum Investment: US $10,000 per investor
- : Crowd Note
- US $4,000,000 :
- : US $400,000
Processing payments is a slow, inefficient, and expensive process. For example, businesses can pay up to 5% per transaction just to access their revenue. Not only can this cause issues with larger, more established companies, but it can also pose a significant pain point for startups. Blockchain used to be seen as a solution to this problem, but we believe expensive transaction costs, bad customer experiences, and the over-complication of the technical solution has prevented it from scaling.
However, we have developed a solution with GatePay, which not only reduces the time and costs of transactions, but also enhances the efficiency from the customer's perspective. With GatePay, users can make contactless, in-store payments and they can also make seamless purchases online and while on mobile applications.
Using blockchain technology, we believe we have developed a payments solution that is faster, cheaper, more secure, and more efficient than existing systems. Using GatePay, fees are as low as 0.7% + 20¢ per transaction, which undercuts what is currently available on Mastercard and Visa payment networks. The technology is also free and straightforward to set up on existing payment systems. We can also facilitate contactless payments for in-store use. Beyond cost advantages, fraudulent payments are reduced, USD settlements are made instantly, and payment UI is significantly enhanced. Ultimately, we believe customers have a better experience and the vendor incurs less risk.
GatePay is a suite of innovative applications allowing businesses to not only receive cryptocurrency as payment, but to convert it immediately to USD (or their desired currency), all while optimizing the customer experience.
The main products for businesses to implement and run GatePay are:
- GatePay Commerce: a business-facing dashboard through which they can manage payments and bank settlements
- GatePay Vendor: an application which is used to accept payments on PoS devices (as well as on mobile devices such as smartphones and tablets)
Key features of the GatePay system:
1. Zero-confirmation payments are made possible when paying in Bitcoin (BTC)
In order to prevent double-spending, payers and payees are meant to wait for confirmations for each transaction. Six confirmations are generally recommended. However, given the small and restricted block size of Bitcoin, payments with the digital currency take a long period of time to receive said confirmations. They can also be extremely expensive if the network is especially busy as cryptocurrency miners prioritize higher fees. We believe this essentially renders in-store payments completely infeasible using cryptocurrency.
Our unique double-spend prevention mechanism allows merchants to accept zero-confirmation payments and therefore spend cryptocurrency in-store.
2. Seamless mobile payments can be made (through use of deep-linking)
Presently, should you want to make purchases with cryptocurrency online, the process can be very long and complicated if you're using a mobile device (as you have to leave the browser/app and go back-and-forth with your cryptocurrency wallet) or relies on scanning a QR code on your desktop. However, given a significant portion of e-commerce takes place on mobile, we sought to optimize this by deep-linking. Ultimately, this means that a user can make a purchase on their mobile seamlessly. This process can be seen in the product gallery.
3. Periodic payments can be set up for subscription services
Up until now, you could not easily set up the equivalent of a direct debit/standing order with cryptocurrency because of issues with verification. We believe we have solved this issue by, again, deep-linking certain payments to ensure periodic payments, such as telephone bills which tend to be paid monthly, can be done easily using cryptocurrency.
4. Contactless (NFC) payments can be made in-store
To our knowledge, unique to GatePay, we have ventured beyond the outdated QR code and have enabled contactless payments using NFC tags. This allows us to not only optimize the in-store experience for customers, but also open up multiple expansion opportunities involving cashier-less stores. A video of contactless payments using GatePay can also be seen in the product gallery.
While at LSE, Alex and George served as the Chairman and President of the LSE AIC, which is one of the world’s largest student conferences on hedge funds, private equity, and venture capital. The conference takes place once a year and attracts some of the most successful financiers in the world, including David Rubenstein, Paul Singer, and David Bonderman. Notably, the conference raised its largest-ever budget with Alex in charge (£120,000) and received the most applications from across the world when George was in charge (8,000 - up nearly 2,000 from the previous year). Both Alex and George headed up a team of 30 students working on marketing, IT, logistics, and branding for the conference.
$1,000 - $20,000:
- Access to the monthly company report (prepared by cofounders), GatePay branded merchandise
$20,001 - $100,000
- Access to the monthly company report, GatePay branded merchandise, expenses paid access to annual GatePay stakeholder meeting
- Access to the monthly company report, GatePay branded merchandise, expenses paid access to annual GatePay stakeholder meeting, private monthly meeting with founders, expenses paid dinner with founders in SF offices
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Frequently Asked Questions
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by GatePay. Once GatePay accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to GatePay in exchange for your securities. At that point, you will be a proud owner in GatePay.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Because GatePay is offering its securities under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page by clicking your profile icon in the top right corner.
Currently there is no market or liquidity for these securities. Right now GatePay does not plan to list these securities on a national exchange or another secondary market. At some point GatePay may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when GatePay either lists their securities on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.
This is GatePay's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in GatePay’s profile.