Zum Rails has announced the launch of a new suite of prepaid card programs powered by Mastercard in Canada. This initiative, unveiled in a news release on August 21, 2023, aims to enhance expense management for businesses by providing employees with reloadable co-branded cards. The program is designed to facilitate faster wage access, consumer rewards, and real-time disbursements, granting both businesses and their customers greater control over their financial transactions.
Zum Rails indicated that the collaboration is available in all provinces except for British Columbia. The prepaid cards are intended to streamline corporate spending by allowing companies to provide employees with cards that can be easily reloaded. This flexibility enables businesses to disburse earned wages more quickly or pay contractors instantly, enhancing operational efficiency.
“Our goal at Zum Rails is to ensure that money moves at the speed of business,” said Miles Schwartz, CEO and Co-founder of Zum Rails. He added that the Mastercard-powered prepaid card programs will help businesses implement smarter payment solutions without the complexities often associated with traditional financial infrastructures. The cards can also come with additional features aimed at underserved customers, such as credit-building benefits.
The introduction of these prepaid cards comes at a crucial time for small and medium-sized businesses (SMBs), many of which have expressed dissatisfaction with their current card options. According to recent findings from PYMNTS Intelligence, detailed in the report “SMB Growth Monitor Report: How Firms Use and Choose Credit Cards,” there exists a significant gap between the offerings of traditional credit cards and the specific needs of many SMBs. The research highlights that despite a variety of credit card options, SMBs are inclined to spend more if the cards included features tailored to their industry.
For instance, construction firms are seeking automation, salons require fraud protection, and retailers desire additional perks. Unfortunately, most card programs tend to treat these businesses uniformly, failing to address their unique needs. This disconnect has resulted in a financial services gap, as conventional credit card offerings do not meet the evolving demands of this dynamic sector.
The research also indicates a merging of personal and business finance practices, with 54% of SMBs reporting that they utilize both personal and business credit cards to finance their operations. This figure rises to 61% among companies located in larger cities. The findings suggest that for many SMBs, credit cards serve not only as financing tools but also as makeshift solutions in a financial landscape that remains inadequately tailored to their requirements.
The launch of Zum Rails’ prepaid card programs is a significant step toward addressing these challenges, providing businesses with a modern solution that aligns with their operational needs. As the demand for more tailored financial products continues to grow, innovations like these could play a pivotal role in reshaping how SMBs manage their finances.
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