As organizations shift away from paper checks to send and receive B2B payments, they have a flurry of options for how to move funds. ACH, card rails, real-time payment networks and even blockchain are stepping in to fill the gap left by the paper check, so which one should firms choose? As this week’s Payment Rails Innovation roundup reveals, FinTechs and payment service providers are embracing the opportunity to mix rails and provide more choice to B2B partners.
Zūm Rails Enables Firms To Mix Payment Rails
Each payment rail has its own pros and cons, but for B2B buyers and suppliers, strategically choosing payment rails for individual B2B transactions is not a feasible option. In a recent conversation with PYMNTS, Miles Schwartz, co-founder of Zūm Rails, explored the opportunity for treasurers to embrace the payment rail mix when access to those rails is consolidated within a single solution. Based in Canada, the company can offer electronic funds transfers (EFT), Interac as well as real-time payment rails including Visa Direct. “Everyone’s been using EFT, but changes in payments are all happening very fast,” said Schwartz. “Right now, educating clients on the different methods that are available in Canada, and understanding their workflow and fitting our gateway within that workflow, and creating the best payment experience based on their needs, is the main focus.”
Mastercard, Evolve Team Up To Bridge Crypto-Fiat Rails
A new partnership between Mastercard and Evolve Bank & Trust aims to streamline the process of settling cryptocurrency card transactions via a stablecoin. The collaboration will bridge fiat rails to cryptocurrencies, with the partners noting in their announcement that the solution will enhance Mastercard’s existing crypto exchange and wallet solutions. “Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency and we’re making it easier,” stated Raj Dhamodharan, executive vice president of digital asset and blockchain products and partnerships at Mastercard.
Mastercard Launches Real-Time Payments Gateway
Mastercard’s other work in payment rails innovation this week came in the form of the launch of PayPort+, the payment technology firm’s solution for financial institutions and payment service providers to streamline entry into real-time payment rails in the U.K. The gateway, the result of a collaboration with Vocalink and Form3, is “part of our multi-rail strategy to enhance payment flow” and drive payments modernization, according to Gregor Dobbie, CEO of Vocalink, a Mastercard company. PayPort was first introduced in 2016 to enable financial institutions (FIs) and payment service providers (PSPs) to loop into the U.K.’s Faster Payments Service.
Transcard Backs Multi-Rail Strategy For Supplier Payments
Also embracing a multi-rail approach to B2B payments is Transcard, which recently revealed the launch of its Smart Disburse platform. The solution helps businesses as well as their banking and FinTech service providers facilitate supplier payment across a variety of payment rails. With support for ERP and bank API integration, the tool enables single or mass payments via ACH, virtual card, Real-Time Payment, Mastercard Send and other payment rails, with the choice helping to drive B2B payments digitization, according to Transcard CEO Greg Bloh. “This changes how payments get made,” he said.
Dwolla Raises Funding For Multi-Rail Business Payments
B2B payments FinTech Dwolla has recently announced new funding for its technology that uses application programming interfaces (APIs) to streamline integration into various payment rails, including real-time payment networks. Investors at Foundry Group led the $21 million round, while Park West Asset Management LLC, Union Square Ventures, Detroit Venture Partner, Firebrand Ventures and Next Level Ventures also participated. In a statement, Brady Harris, the Dwolla’s CEO, said the investment will help fuel further growth for the payment platform, invest in its tech stack and go-to-market initiatives, technical integrations with FinTech partners and international expansion.