Zūm Rails and Fiserv have partnered on a service that aims to enable US businesses with everything they need to offer direct bank-like services, without relying on a bank or other third-party providers.
Zūm Rails describes itself as a Fintech that is leveraging open banking and payments on any payment rails. Fiserv is a top banking-as-a-service firm. The collaboration is said to allow businesses, both large and small, to facilitate accounts payable and receivable transactions, merchant onboarding, reporting, reconciliation, and fraud management without relying on a bank. The service’s potential market size of the embedded finance offer is said to be around an $84 billion market opportunity.
Regarding payments and transfers, the model is said to be able to move funds through every US rail, including credit cards, Visa and Mastercard Debit, the Automated Clearing House (ACH), FedNow, WEB Debit, Venmo, and PayPal.
Zūm Rails expects to scale its work with Fiserv across the US, including a new service banking as a service from Zūm Rails.
“We launched Zūm Rails with the goal of providing open banking and instant payments services at a time when it was difficult for businesses to do both. As businesses’ needs have evolved, so has our work to enable them to execute on any digital payments, banking or financing capabilities that they need to deliver on their customers’ expectations,” said Miles Schwartz, co-founder, Zūm Rails. “Our growing partnership with Fiserv is critical to expanding these capabilities—especially as we continue scaling our work in the U.S.”
Zūm Rails said it is also developing a new joint offering specifically for the Canadian market.
