Across the United States, small businesses are at the heart of local communities. However, these same businesses face a lot of challenges, and one is the need to pay card transaction fees that can inhibit their revenue. NeoPay is a soon-to-launch startup that will lower those transaction fees for small businesses and provide gamified rewards for customers.
NeoPay is a platform developed by NeoMana Labs, a Chapel Hill company founded by George Peacock (who is CEO). NeoMana Labs is the larger startup through which Peacock and the team develop different products and platforms.
Peacock had been involved with the Bitcoin community since 2015 and admired the Lightning Network’s ability to facilitate fast and inexpensive transactions. He thought the same efficiency and low cost could be applied to everyday payments, and this thinking ultimately led to the development of NeoPay.
The cost of card transactions can quickly chip into the revenue of small businesses. Most small businesses pay between 2.8-3% of every sale, plus 10 cents per transaction, in fees. That means that, for example, on a $10 transaction, a total 4% is being given up.
NeoPay aims to cut these transaction fees in half to solve the nagging issue for small businesses.
Developing an app for both businesses and consumers
NeoPay is a dual-purpose payment platform benefitting both small businesses and consumers. When consumers pay small businesses through NeoPay, the platform offers lowered transaction fees for merchants and provides gamified rewards for consumers.
Within the NeoPay app, users select their college campus and can see local, small businesses that have partnered with NeoPay. They can then use the app to conduct transactions with those entities.
Small businesses that process payments through NeoPay pay 1.5% of each sale and 5 cents per transaction in fees. This is effectively half of the transaction burden small businesses typically suffer.
Depending on how many businesses adopt NeoPay, the platform’s usage could result in an additional $250,000 to $1 million in annual revenue remaining in a local economy as opposed to being lost in transaction fees.
While Peacock knew that the lowered transaction fees would attract small businesses to join the platform, he also wanted to incentivize local students and consumers to download the app. This led to the development of the app’s range of gamified rewards.
Peacock said that NeoPay could be effectively run as a business by charging just 1% in transaction fees, but the added 0.5% and per-transaction fee allows them to fund the gamified rewards.
On the consumer side, users deposit money into the NeoPay app, which they can then use to pay at any local business that has partnered with startup. After each transaction, users will select one of three face-down cards, which will then grant them a reward such as a discount to a local business or sweepstakes entries.
Each week, NeoPay will take half of its revenue and turn it into a cash jackpot for sweepstakes, which users can gain entries for via purchases, the post-purchase cards, clicking a free link in the app or referring others to NeoPay.
Based on all of the rewards customers can earn by paying with NeoPay, the app effectively functions as a 1% cash back debit card, Peacock said.
“The more students that use it, the more merchants will save,” Peacock said.
Preparing for launch
NeoPay will launch at its first college campus, the University of North Carolina at Chapel Hill, later this month—just in time to meet students returning to campus. The app will feature 10 partnered businesses upon its launch, and the startup is currently working on partnering with even more local businesses.
After the Chapel Hill launch, Peacock said he plans to bring NeoPay to the University of Georgia and Auburn University in January 2026. From there, the startup will continue to expand onto college campuses, with a primary focus on large universities in semi-rural communities.
Peacock said that depending on the adoption of NeoPay, he anticipates that the startup could generate over $250 million in annual revenue.
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Startup: NeoPay (NeoMana Labs)
Founder: George Peacock (CEO)
Founded: 2023
Team size: 4
Location: Chapel Hill
Website: www.neoomanalabs.com
In addition to NeoPay, NeoMana Labs is also working on other software in the financial tech space, including a stablecoin and a unique ledger system.
While NeoPay is currently focused on expanding to other large college campuses, Peacock said the startup could also be applied to other places including farmers markets, businesses surrounding large sports stadiums or smaller towns with distinct business districts.
“If I pay with NeoPay, the merchant wins, I win and also the community wins.”
