Orum, the API for fast, reliable payments, today announced the launch of Verify, the first ever product built on top of FedNow, the Federal Reserve’s new instant payment rail.
Orum’s patented technology – Verify – “determines within 15 seconds whether a bank account is open and valid before initiating payments.” With 100% coverage of all US-based consumer and business bank accounts — “a meaningful step forward in an industry still plagued by invalid credentials, friction, and fraud — Verify makes it easy for businesses to authenticate any type of bank account.”
With the recent launch of FedNow, there has “been a lot of discussion about its potential impact on the broader fintech ecosystem.”
Orum’s Verify is the first example of “the next gen of innovation built on top of FedNow – in this case replacing the antiquated, slow, and unreliable ways businesses have traditionally verified bank accounts.”
Stephany Kirkpatrick, founder and CEO of Orum, said:
“Failed payments cost the global economy over $100B each year. Lost time verifying accounts equals lost revenue and ultimately lost customers. This is especially true for business bank accounts, which are notoriously difficult to verify. Businesses need confidence they are debiting or crediting a real account to ensure the payment lands safely in the bank account, but most solutions today are slow or don’t include coverage for all B2B use cases. Verify – built on top of FedNow – has changed this equation, making it now possible to verify any type of bank account instantly.”
Traditionally, businesses have used “a range of antiquated solutions to verify bank accounts, including slow microdeposits that have to be inputted by each user; batched historical data that fails to reflect intra-day changes; and the manual entry of end-user login credentials. Any one of these processes can take days, leading to millions in lost revenue.”
While credential-based verification has “become an increasingly popular alternative in the consumer space, this approach is insufficient for B2B payments.”
The launch of FedNow allowed Orum “to build technology that leverages the new payment rail to provide real-time account information to businesses.”
The rich data is sent automatically “back to the business via a webhook, providing real-time results and eliminating the need for a customer to be involved in the bank account verification process.”
Orum built Verify based “on significant demand from financial, business, and banking partners who needed the ability to instantly verify bank accounts before processing payments.”