nanoPay operates a ‘digital version’ of the Canadian dollar originally created by the Royal Canadian Bank
Toronto-based nanoPay Corporation announced last week a $10 million Series A funding round from Goldman Sachs’s Merchant Banking Division, Andrew Prozes’ APAGM Services LLC, Jarnac Capital Management, and Rohatton.
“This additional funding is a huge vote of confidence in nanoPay and its ability to prove our global potential,” said nanoPay Founder and CEO Laurence Cooke in a press release.
The news follows up on the company’s acquisition of MintChip from the The Royal Canadian Mint to help launch a new digital currency. nanoPay was vague about where the money would go, but they implied it would be reinvested in services related to the digital currency front. The company also offers APIs for transferring “any form of digital value.”
Cooke continued, “After successfully deploying MintChip as a digital cash platform in Canada in June 2016, our focus is now on expanding the platform beyond digital cash to a broad range of B2B use cases that have global applications, for example, business-to-consumer disbursements and cross-border payments.”
The currency itself is pinned to the value of the Canadian dollar. “It’s a direct asset transfer model. You can move anything of value from one person to another,” Cooke recently told BNN Business Day recently (video above), where he also said the company is relying on a revenue stream from a B2B model, where there is a “huge opportunity” relative to B2C payments.
The company is emphatic that their currency isn’t “crypto-currency,” but a digital version of the Canadian dollar. They also claim to have the trademark for the term “frictionless payment,” cutting out the stages of payment verification. An example of a frictionless payment is when you make a purchase through your iPhone, which already includes biometric fingerprint identification, using a conduit like ApplePay that already has a confirmation mechanism, and others.
“Blockchain has overheads and in fact it has to have many different participants for it to work. It needs to run a consensus which means it has to be online,” Cooke said. “In our environment you can issue an offline payment. You cannot make offline payments in blockchain.”
Cooke founded the startup in 2013, who has raised $10.35 million in total funding and currently resides over a 27-member team.