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Zūm Rails, a fintech company based in Canada that offers open banking and instant payment solutions through a single platform, has formed a partnership with Fiserv.
This collaboration is aimed at empowering businesses in the United States to provide embedded finance services directly to their customers.
Enhancing Embedded Finance Services
Through this partnership, Zūm Rails will leverage Fiserv’s embedded finance technology, making Fiserv the main transaction processor for Zūm Rails’ payment gateway.
This integration will allow companies—ranging from large corporations to small and medium-sized enterprises (SMEs)—to execute various financial tasks without depending on traditional banks or outside service providers.
These functions encompass managing accounts payable and receivable, onboarding merchants, generating reports, conducting reconciliations, and implementing fraud prevention measures.
Among the initial users of this solution are Homebase, a real estate platform, and Passive, a property management software.
The embedded finance sector, presently valued at $84 billion, offers substantial potential for businesses across diverse fields, although the significant entry barriers have kept many from entering this domain.
This is largely due to the historical challenge of needing to collaborate with multiple vendors to develop entirely new integrations for each additional service.
According to Sunil Sachdev, Fiserv’s Head of Embedded Finance, “As businesses seek innovative ways to enhance and solidify their relationships with customers, there is an increasing interest in embedding financial services directly within software platforms.”
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