Zum Rails has announced the launch of a suite of prepaid card programs powered by Mastercard, available throughout Canada, excluding British Columbia. This initiative aims to enhance expense management for businesses by offering reloadable cards designed for corporate spending. The cards will allow companies to provide employees with greater financial flexibility, enabling real-time access to wages and consumer rewards.
According to Zum Rails, the prepaid cards will facilitate seamless expense management, allowing businesses to control funds with speed and security. The program not only empowers employees with co-branded, reloadable prepaid cards but also allows companies to disburse funds instantly to contractors or employees. This flexibility is particularly beneficial for small and medium-sized businesses (SMBs) that require efficient financial solutions.
Miles Schwartz, CEO and Co-founder of Zum Rails, emphasized the importance of rapid financial movement in business operations. He stated, “At Zum Rails, we believe money should move at the speed of business, and we’re making it easier for businesses to embed smarter, faster payments into their operations.” Schwartz highlighted that the prepaid card programs will enable companies to offer branded options that operate in near real-time, avoiding the complexities associated with traditional financial infrastructure.
The introduction of these prepaid cards comes at a time when many SMBs are dissatisfied with their current credit card options. A recent report from PYMNTS titled “SMB Growth Monitor Report: How Firms Use and Choose Credit Cards” indicates a disconnect between available credit card features and the specific needs of various industry sectors. The research found that despite a wide range of credit card options, SMBs expressed a desire for tailored features that align with their operations.
For instance, construction firms are seeking automation tools, salons are prioritizing fraud protection, and retailers are looking for additional perks. The report underscores that many businesses are not short on credit but rather underserved by generalized financial products that fail to meet their unique requirements.
The research also revealed a significant overlap between personal and business finances, with 54% of SMBs reporting the use of both personal and business credit cards to finance their operations. This figure increases to 61% among businesses located in major urban areas. The hybrid usage of credit cards illustrates a broader inefficiency within the financial system, as traditional offerings are not compelling enough to meet the distinct needs of SMBs.
The launch of the Zum Rails Mastercard prepaid card program represents a step toward bridging the financial services gap for these businesses. By providing a more adaptable and responsive payment solution, Zum Rails aims to empower SMBs to manage their finances more effectively and cater to the evolving demands of the marketplace.
As businesses increasingly seek innovative financial solutions, the collaboration between Zum Rails and Mastercard could redefine how companies handle expenses, ultimately enhancing operational efficiency and employee satisfaction.
