When Yoyo Chang first told his parents that he wanted to start his own technology venture, they were alarmed: This was not part of the plan.

Paul and Pauline Chang had emigrated to the U.K. from Taiwan in 2003 so their son could learn English and eventually pursue an international business career, preferably at a global investment bank. Sure enough, Chang excelled in school. He also fell in love with the stock market at the age of 13, raking in £250,000 ($326,650) in trading profits for his family by the time he went to college in 2018.

But then Chang’s life took a turn. Rather than focus on his studies and save his money, he wanted to plow it into a startup. His idea was an app that would enable stores to accept payments directly from customers’ mobile phones, slashing transaction fees and eliminating the need for card readers and other hardware.

Worried his only child was taking on too much, Paul researched the complexities of payments infrastructure and learned it was tightly regulated and dominated by the likes of Visa, Mastercard, and PayPal, not to mention banks. What made Chang, an 18-year-old freshman, believe he could jump into that world?

“I told my boy, ‘Don’t do it. It’s too difficult,’ ” Paul says with Pauline and his son at his side. “I told him to buy a house.”

“I didn’t listen!” interjects Chang, now 20, with a laugh. “I was naive.”

His mother shakes her head. “He still doesn’t listen,” she says.

Now Chang’s naivete is paying off. His venture, KodyPay, has morphed from a crazy idea he and some friends conceived in their high school cafeteria into a fledgling business. KodyPay raised $2.3 million from angel investors this summer. Chang made deals with a partner of International Business Machines Corp. and a subsidiary of Visa Inc. to build his technology. And KodyPay was ready to go live in November in cafes and shops at the University of York, where Chang is a third-year business management student. With the novel coronavirus forcing thousands of students to attend classes online throughout northern England, the plan is to try to release the app in January.

At first glance, Chang’s tech adventure follows the familiar contours of the Silicon Valley creation myth. He does idolize Steve Jobs, Elon Musk, and Jack Ma and unabashedly dreams of creating a company that can change the world. Yet Chang’s journey deviates from the traditional narrative in myriad ways. For starters, he isn’t a solitary brainiac holed up in his dorm room or garage writing computer programs. Actually, he can’t read a line of code, let alone write one.

Nor is he the product of elite private schools or the hothouses of innovation that thrive in universities such as Stanford and Cambridge. Chang was educated in state schools in southern England and has become an unexpected star at the University of York, an institution known more for its acclaimed scientific and humanities research programs than for its incubation of tech startups.

Chang’s knack for strategic thinking and marshaling allies to his side is well suited to the next chapter in financial modernization. The fintech revolution of the last decade is largely done: Online banking and payment apps have been commoditized, and cloud computing has made starting a venture relatively affordable.

The game now is all about forming creative business models, marketing, and partnerships, says Brad van Leeuwen, a digital payments entrepreneur and co-founder of Cledara Ltd., a cloud software company in London. In payments, a $2 trillion global industry in annual revenue, the prize is titanic. “The biggest challenge in the payments space isn’t the technology, it’s building a critical mass of customers,” Van Leeuwen says. “And the barriers to entry are no longer insurmountable—a 20-year-old can do it.”

A gregarious sort who talks at warp speed, Chang has attracted a squad of influential mentors to his cause. In June, Hank Uberoi, a onetime senior executive in charge of technology at Goldman Sachs Group Inc., became KodyPay’s chairman. As the former chief operating officer of Ken Griffin’s hedge fund Citadel as well, Uberoi moves in finance’s rarefied circles. He’s connecting Chang to his network of ex-Goldman partners, old Citadel colleagues, entrepreneurs, and angel investors.

Between assembling a board of directors, negotiating deals, raising working capital, and managing the rollout of the app, Chang’s days are a blur of tasks and meetings. When he wakes up, he says, the first thing he thinks about is all the business problems he must solve that day. Then he’s got his schoolwork, too. His university advisers fear their pupil will become so overwhelmed he’ll drop out. As for a social life, Chang has no time to do what guys his age typically spend their time doing—hanging out with his friends on Discord or WhatsApp, playing sports, or even dating.

“I haven’t seen my friends in months,” Chang says. “Whenever they do want to meet, I just feel so guilty because I have so much stuff to do, and a lot of people are depending on me. I really didn’t know what I was getting into—I just went for it. But looking back, I think doing KodyPay is one of the better decisions I’ve made in my lifetime. I have to have that kind of mindset. I can’t not do it.”

Turning that idea into an application was the trick. So Chang pitched KodyPay to his faculty adviser, Peter Ball, and other university officials. The student broke down KodyPay’s proposition into simple economic terms for Jon Greenwood, the school’s director of commercial services. York had recently invested £350,000 in new tills and payment terminals in its retail outlets and cafes across campus. With the pandemic already sharply diminishing the use of cash, he was unhappy paying tens of thousands of pounds in processing charges every year as more of his students went cashless. “Yoyo rolled up and said we could do away with two-thirds of that cost,” Greenwood says. “That’s what got my attention.”

Greenwood gave KodyPay a spot in the university’s brand-new startup incubator program called Phase One. Chang also jacked into the school’s alumni network. Before long, he’d clicked with York grads John Holmes, the chairman of Hardman & Co., a U.K. investment research firm, and Chris Baker, a professional astronomical photographer and angel investor. Both men advised Chang on establishing a business and put him in touch with professional contacts.

Still, KodyPay wouldn’t amount to anything more than a PowerPoint deck unless Chang could build and commercialize the application. By the fall of 2019 he was still searching for a way to do that when he caught a break. Through Greenwood, he met Ron Argent.

During a 31-year career at IBM, Argent helped design, build, and sell information technology systems to global banks, government departments, and other major organizations. In 2015 he set up Cognition Foundry, a kind of digital lab that took equity stakes in startups in exchange for developing their technology. It also acts as a talent spotter for its sponsor, IBM. In the fall of 2019, Argent met with Chang and a couple of colleagues in a cafe on the south bank of the Thames in London.

Listening to Chang, Argent saw straightaway that KodyPay wasn’t doing anything groundbreaking in terms of the technology itself. He’d already seen similar device-to-device payment systems at work in China. What he did like was Chang’s plan to take terminals out of the equation. Argent could see the immediate financial benefits. “Yoyo was talking about a very scalable idea and one that fits in nicely with IBM’s initiatives in fintech,” he says.

By last spring, Cognition Foundry agreed to build KodyPay’s platform in exchange for a 5% equity stake in the startup. Argent assembled a squad of six to eight software developers in Bulgaria to write the code. He also briefed members of IBM’s senior management team on the venture, as well as its worldwide sales unit. In October, Tom Rosamilia, senior vice president of IBM Systems in North America, interviewed Chang as part of a virtual technology conference for several thousand customers.

Meanwhile, Chang formed a partnership with Cybersource, a company owned by Visa that produces payment processing and security software. In August he closed his first fundraising round with investments from a wealthy Taiwanese family, angel investors, and Uberoi, the former Goldman partner.

Chang, who’s earning the rough equivalent of an A- so far, says he’s committed to finishing school, and, oddly, the pandemic has made that easier because he doesn’t have to physically be on campus and can study and take his final exams online. His parents want him to go for a master’s degree in finance, and he likes the idea of pursuing that in the U.S. But these plans may be upended by his continuing education in KodyPay.

With the University of York set to demonstrate KodyPay’s capabilities once students return to campus en masse, Uberoi and Chang are now putting out feelers as they look toward raising capital in a Series A round. It’s a big step, choosing investment partners at such a formative stage. Chang, with Uberoi’s help, will be courting venture capitalists right as his baby goes out into the world. He’ll be doing so just as the pandemic is undermining in-store shopping during a tough winter.

For all the hopes and dealmaking and sheer toil that have gone into KodyPay, the reality is it may turn out to be just another payments app in a sea of apps. Even with a first-rate strategy and whiz-bang app, it can be hard to get consumers to change their spending behavior, says Van Leeuwen, the payments entrepreneur. “Before you get usage of your product, you have to build acceptance,” he says.

The future of finance will be written by very few authors. Chang is philosophical about the possibility that he won’t be one of them if his venture fizzles, as deflating as that might seem. After all, he’s only 20.

“I can afford to make mistakes,” he says. “In fact, they’re not mistakes when you’re this young, they’re learning experiences. So it doesn’t matter. I don’t have to worry about the future. I just have to worry about the journey.”

This article was provided by Bloomberg News.