Zūm Rails, a Montreal-based company at the forefront of integrating open banking with instant payments, has successfully concluded its Series A funding round, securing $10.5m CAD.
This significant financial injection was led by Arthur Ventures, a Minneapolis-based growth equity firm known for its focus on B2B software.
The company is uniquely positioned in the financial technology sector, offering an all-encompassing payments gateway that combines open banking and instant payments into a single, streamlined service. This innovative approach addresses the fragmented nature of the U.S. payments landscape, which, despite moving towards standardization, has lagged behind other markets in adopting open banking and instant payment practices.
With the fresh funds, Zūm Rails is poised for expansion, focusing on the U.S. market where it aims to democratize access to open banking and real-time, FDIC-insured payments for businesses. This includes the development of new Banking-as-a-Service offerings and other capabilities to enhance its comprehensive payments solution.
Zūm Rails’ strategy revolves around its omni-rail approach, catering to a wide range of payment needs from identity verification to facilitating payments through various methods including Visa Direct, Mastercard, and more. This multifaceted solution not only simplifies the transaction process for companies but also minimizes risks associated with payments.
Zūm Rails co-founder and CEO Marc Milewski stated,
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