Zūm Rails Adds Embedded Card Acceptance to Payments Stack
Montreal-based Zūm Rails has completed its payments stack by adding embedded credit card acceptance. The new feature enables fintechs and marketplaces to build fully customizable, in-app checkout experiences. The move is intended to reduce integration friction and accelerate time-to-market for B2B and consumer financial products.
- Prior to its recent Series A funding round of $10.5 million CAD ($7.8 million USD) in February 2024, Zūm Rails had been bootstrapped and profitable since its founding in 2019. The company, started by fintech veterans from Flinks and Versapay, now processes over $1 billion in payments monthly and has achieved $10 million in annual recurring revenue. - The new card acceptance feature is facilitated by a partnership with Fiserv, allowing Zūm Rails to operate as a payments facilitator in both Canada and the U.S. This enables them to manage merchant onboarding, settlement, and compliance for their clients. - This launch completes the company's "omni-rail" platform, which unifies numerous payment and banking services through a single API. The stack includes connections for Interac, EFT, ACH, RTP, FedNow, Visa/Mastercard debit, and open banking data aggregation. - Beyond payment processing, Zūm Rails is expanding its banking-as-a-service (BaaS) offerings, which include Know Your Customer (KYC) tools and card issuing capabilities through a partnership with Mastercard. This allows a platform to both issue payment cards to its users and accept card payments within the same system. - Early adopters of the embedded card feature include the brokerage platform Questrade and the real estate company Zolo. Zūm Rails' broader client list of over 200 companies includes Western Union, Coinsquare, and Desjardins. - The move targets the large and growing embedded payments market, which was valued at approximately $24 billion in 2024 and is projected by some analysts to reach nearly $100 billion by 2030. This growth is driven by the demand for seamless, in-app transactions without redirection to third-party checkout pages.
