The adoption of open banking and instant payments is gaining momentum in the United States with the launch of the new program FedNow in July 2023. Zūm Rails, a Montreal-based company, is set to revolutionize the payments landscape by providing an all-in-one payments gateway that merges open banking with instant payments.
Key Takeaway
Zūm Rails secures
0.5M Series A funding to expand its all-in-one payments gateway, merging open banking with instant payments, and introducing new banking-as-a-service features for merchants.
Revolutionizing Payment Experiences
Zūm Rails, founded by Marc Milewski and Miles Schwartz in 2019, aims to simplify the complexity of moving money via different payment rails, allowing companies to use the approach that best suits their business. The company’s technology leverages “omni rails” for payments, including traditional credit, debit, electronic funds transfer options, and real-time options through partners such as Visa Direct, Mastercard, MX, and Canada’s Interac network.
Impressive Growth and Expansion
Zūm Rails currently processes over $1 billion in payments each month for more than 500 companies, including Questrade, Coinsquare, and Desjardins. The company has experienced over 200% growth in the past year and successfully launched in the U.S. at the end of 2023. To further fuel its growth, Zūm Rails closed a $10.5 million Series A funding round, led by Arthur Ventures.
Future Endeavors
The company plans to invest in expanding its payments offerings, including the introduction of new banking-as-a-service features for merchants. Additionally, Zūm Rails is working on a FedNow offering in the U.S. that will enable businesses to send and receive FDIC-insured payments within seconds.
