MID Among Investors in New Payment App

RAPAPORT... Mobile payment app Mazalit has raised $1.9 million infunding from diamond companies, and aims to begin piloting thetechnology in the near future.Israel-based MID House of Diamonds, Benma Diamonds, Novel Collectionand HND Diamonds are among the new investors in the start-up, founder and CEOZe'ev Maimon told Rapaport News this week. It aims to use the money to developits technology to the level it desires, as well as to launch a viable initialproduct. It is also seeking to get more banks on board to handle users'transfers.Mazalit claims to be the diamond industry's first app formaking digital payments. The name - pronounced ma-ZAHL-it - reflects its aim tospeed up and ease the process of closing transactions: Diamond traderstraditionally seal deals with the word "mazal," a Hebrew phrase referring to good fortune. The app will enable users to finalize payment in under 10seconds, with about 90% lower fees than most dealers currently have to pay whenwiring money across borders, Maimon said in November. At that time, the company had already secured $1.2 million of the investment - fromdiamond logistics firm Malca Amit, and from Ari Wolff, formerly of polishedmanufacturer Leo Schachter.In the upcoming pilot with MID, Mazalit will assess howthe platform meets large diamond businesses' needs. Oded Zehavi, a formerexecutive at digital-payment companies PayPal and Payoneer, and a senioradviser to Mazalit, attended the recent Hong Kong trade fairs to discuss current payment challenges with industry members."We had very good feedback from clients and serviceproviders at the Hong Kong show," Maimon said this week. "The market isyearning for a real solution that will be acceptable [for] regulators and banksaround the world, and will reduce [the] risk and cost of wires from day one."Maimon declined to say how much each investor hadcontributed, or how much equity they had each taken in the company.Image: Oded, Dotan and David Meirov of MID, alongside Oded Zehavi.