Funding | Feb 23, 2024
Image: FreepikZüm Rails Secures $10.5M Series A Funding to Expand Across North America
Züm Rails, a Canadian fintech startup, is transforming the payment processing landscape by securing $10.5 million in Series A funding , led by American-based VC Arthur Ventures, funding to expand its innovative banking-as-a-service and instant payment solutions in the U.S. and beyond.
Founded in Montreal in 2019 by Marc Milewski and Miles Schwartz, Züm Rails has quickly risen to prominence by addressing the fragmented nature of payment experiences for businesses. By developing an all-in-one payments gateway that integrates open banking with instant payments, Züm Rails is enabling companies to streamline their financial transactions without needing to become payment experts. With this recent infusion of venture capital, Züm Rails is poised to accelerate its growth, expand its offerings, and solidify its position as a leader in the fintech space.
See: Autonomous IoT Transactions and Micropayments
- The company’s “omni rails” technology supports a wide range of payment methods, including traditional and real-time options, through partnerships with major financial networks including Visa Direct, Mastercard, MX and Canada’s Interac network. Züm Rails’ solutions are designed to reduce fraud, verify customer identities, and facilitate seamless payments, addressing critical needs in the fintech industry.
- Processing over $1 billion in payments monthly for more than 500 companies including Questrade, Coinsquare and Desjardins, Züm Rails has seen a 200% growth in the past year and recently expanded into the U.S. market. The $10.5 million funding round, led by Arthur Ventures, will be used to grow Züm Rails’ presence in the U.S. and introduce new banking-as-a-service features and a FedNow offering.
Marc Milewski, co-founder of Züm Rails:
“You learn about all the problems everyone has moving money. Open banking was discussed, but I thought it was more about payments. Miles and I talked about building a whole new gateway that unified these experiences. Companies don’t want to be payment experts — that’s our job.”
See: How Permissioned DeFi Will Transform Global Payments
Why It Matters
In a world where digital transactions are becoming increasingly complex and security concerns are paramount, Züm Rails offers a streamlined, secure, and efficient solution. Their solutions enhance the operational efficiency of businesses and also contribute to the broader adoption of open banking and instant payment technologies, setting new standards for the fintech industry.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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- Source: https://ncfacanada.org/zum-rails-10-5m-boost-for-north-american-expansion/
