Zum OS New Way of payments
Zūm Rails Closes $10.5M Series A to Expand Payments Gateway and Launch Banking-as-a-Service
The Series A Funding Round, Led by Arthur Ventures, Will Fuel Expansion of Montreal-Based Zūm Rails’ Comprehensive Payments Platform
NEW YORK & MONTREAL — Zūm Rails, the all-in-one payments gateway that merges open banking with instant payments, today announced the close of a $10.5 million CAD Series A funding round. The round was led by Arthur Ventures, a Minneapolis-based growth equity firm specializing in B2B software.
Compared to other global markets, the U.S. has been slower to standardize open banking and instant payments. While new data-sharing regulations and programs like FedNow are emerging, businesses still face fragmented options to offer consumers a seamless transaction experience that balances speed, flexibility, and security.
A Unified Payments Gateway
Zūm Rails integrates open banking and instant payments into a single platform that powers the entire transaction journey—from identity verification and bank account linking (reducing fraud and failed transactions) to facilitating payments via customers’ preferred methods.
The platform’s omni-rail approach supports:
Traditional credit, debit, and EFT payments
Real-time payments through partners like Visa Direct, Mastercard, MX, and Canada’s Interac network
“Companies that want to move money instantly need to adjust for risk, and open banking is the greatest gift to payments in this regard,” said Marc Milewski, Co-Founder and CEO, Zūm Rails.
“We’ve brought open banking and instant payments together in an omni-rail solution that enables companies to check off all of their payments needs from a single gateway. With Arthur Ventures’ investment, we’re positioned for further expansion of our solution through the addition of Banking-as-a-Service and other new capabilities.”
From Bootstrapped to North American Leader
Founded in 2019, Zūm Rails self-funded its way to profitability, establishing itself as a leading payment gateway across North America. The Series A funding will support:
Expansion into the U.S. market, partnering with financial service providers like Fiserv
Introduction of Banking-as-a-Service features for merchants
A forthcoming FedNow offering, enabling FDIC-insured payments within seconds
“Payments are the lifeblood of every business, but too often, keeping up with the ever-evolving array of services needed to process payments quickly, efficiently, and securely stands in the way of success,” said Jake Olson, Vice President, Arthur Ventures.
“Zūm Rails’ explosive growth is validation of its ability to solve this problem. Having already transformed the Canadian payments landscape, the company is well-positioned to increase this growth with the investments it's making in its product and scaling its presence across all of North America.”
“From open banking to instant payments, Zūm Rails has been on the front lines of the biggest payment technology advancements before many of them were even a thought in businesses’ minds,” added Miles Schwartz, Co-Founder and Chief Sales Officer, Zūm Rails.
“Our long-term vision goes far beyond individual capabilities. Integrating these into a single solution that simplifies business operations will continue to be our focus as we expand in the U.S.”
Zūm Rails currently processes over $1 billion in payments per month for clients including Questrade, Coinsquare, and Desjardins, the largest federation of credit unions in North America.
