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Amazon Founder Backs Venture Making War on Paper Bills
doxo is going to take a crack at weaning Americans off of paper bills and onto the Internet with a free web service

A brand new Seattle-based start-up called doxo with a couple of fancy backers is going to take a crack at weaning Americans off of paper bills and onto the Internet with a free web service.

The uppity press release announcing its arrival carries the headline: "Paper, Your End is Near."

Its investors include Bezos Expeditions, the venture investment fund of Amazon.com founder and CEO Jeff Bezos, and early stage VC Mohr Davidow Ventures. They put a $5.25 million A round into the place a year ago on top of earlier angel investors.

Management includes executives from Amazon, Snapfish, Microsoft and Qpass, who have already driven consumer adoption of new online services and processed billions of dollars in consumer mobile and Internet transactions. Co-founders Steve Shivers, Mark Goris and Roger Parks worked at Qpass, the early billing and payment house sold to Amdocs for $275 million in 2006.

Doxo's idea is to connect folks with all the people they owe money in one place through one password.

It's thinking credit card companies, mobile phone companies, utilities, cable companies, insurance companies, banks, financial institutions, even frequent flyer statements and the dry cleaner's down the street.

It says on its web site that "The average household has 22 businesses that send mail each month. That's about 21 more account logins and passwords than most of us want to deal with. With doxo, you keep your account details safe and secure on one web site - logins, passwords, customer support numbers - whatever you need."

In this - to TechFlash's eye - doxo may rival another new, barely-off-the-ground, not-quite-launched, private beta-y, cloud-ified start-up of illustrious pedigree, an outfit called Manilla, backed by the once formidable Hearst machine with an interim CEO who helped launch Hulu, that appears to want to de-clutter your life and manage and organize all your household accounts, rewards programs, bills and subscriptions online in one place.

Venture Beat, on the other hand, compares it to Mint, the Intuit-acquired personal finance service, in bringing multiple accounts together.

Anyway, doxo's starting by invitation-only at www.doxo.com.

Already a couple of years in the making, now that doxo's out from under the radar, it may still take a while to get organized. It has to overcome user ambivalence about online bill paying and entice billers to come on board. They'll have to pay to slip their invoices and other documents into doxo accounts that are supposed to be saved securely and privately for posterity. Doxo says it will not sell ads or any data.

With a start-up's lingering air of mystery it says it's signed agreements with national and regional service providers, whose identities will be disclosed in the next few months. Apparently they've been doing tests and private betas for months.

Maybe by then doxo will have a way to pay bills on its site. If not, it will just pass you the bill and you'll have to go to the billing site to pay. Doxo will automatically track and notify users of due dates. If a user's billers haven't signed with doxo - or don't respond to a user's ping - users can still download or scan their bills into doxo along with logins and passwords for each account. At least everything will be in one place then.

There's no software installation or professional services. The widgetry is cloud-ified.

The start-up says businesses can "dramatically" boost paperless adoption and save money by aligning their efforts with other providers.

U.S. business currently spend more than $30 billion to mail more than 50 billion bills and other documents to customers. The start-up says that after more than a decade of pregnant possibility paperless adoption is still only about 15%. Producing and delivering business mail still consumes nine million trees, burns 500 million gallons of fuel, and generates 10 million tons of greenhouse gasses annually.

It claims it can save businesses more than 80% of the printing, paper and postage costs of paper mail and be cash-flow positive from the start. It promises security that meets or exceeds the methods used by banks and other financial institutions, protecting documents from hackers, natural disasters and mailbox theft. It's using RSA 2048 encryption with an AES-256 symmetric key. Users register anonymously other than a ZIP code (how ironic) and an e-mail address.

According to Matt Swain, senior consultant at market research and consulting firm InfoTrends, "The current approach to paperless is dated and not customer-centric. Doxo addresses the challenges consumers have with traditional paperless solutions, coupled with an attractive business model for providers to drive adoption - a winning combination." We'll see. If the United States Postal Service, now losing money hand over fist, was smart and thought outside the (mail) box, it would have done something like this years ago.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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