Orum goes live with the Federal Reserve

Thursday 29 February 2024 11:05 CET | News

API solutions provider Orum has announced that it went live with FedACH, the Federal Reserve’s automated clearing house service, and it is set to add FedNow and FedWire solutions. 

As per the information detailed in the press release, Orum is live with the Federal Reserve and intends to integrate FedNow and FedWire services, with the move being part of the company’s new money movement API, Deliver. The Deliver API is set to orchestrate and optimise money movement via Federal Reserve payment rails on behalf of banking institutions.

Orum has announced that it went live with FedACH, the Federal Reserve’s automated clearing house service, and it is set to add FedNow and FedWire solutions.

A direct connection for payment processing and settlement represents a challenging task for companies, as meeting the criteria for access requires them to meet the Federal Reserve’s diligence, contracting, and IT testing conditions, in addition to those of sponsoring financial institutions. Due to this, many payment platforms and fintech companies cannot gain access to all the possible payment rails while also navigating technical difficulties and frequent downtime depending on their banking partner. Ponemon Institute’s research shows that downtime can cost a business as much as USD 500,000 per hour.

Orum’s development strategy

Representatives from Orum underlined their company’s enthusiasm over the ability to support live transaction activity through the Federal Reserve’s payment rails. Since its inception, the company has been committed to solving the time-to-money gap for its customers so they can develop improved financial products that can enhance access to the financial system. By directly connecting to the Federal Reserve Bank, Orum plans to optimise and orchestrate payments to deliver accelerated and more reliable payments to its financial institution customers. Additionally, the move enables the company to provide increased payment speed and certainty of settlement to the market.

Furthermore, the introduction of Orum’s new Deliver API is set to allow the fintech to provide bank-rate pricing and expanded processing windows. The launch follows the company’s announcement that it developed Verify, a solution that instantly validates bank accounts. The Verify API utilises the FedNow Service and RTP, covering all US bank accounts and replacing traditional offerings that rely on batched data, probabilistic scoring, and outdated microdeposits. Through this launch, the company intended to improve how businesses verify bank accounts, aiming to reduce lost revenue and minimise the time spent on authenticating bank accounts.

More information about Orum

Through its API solution, Orum focuses on delivering access to all major rails, including FedNow, RTP, Same Day ACH, ACH, and Wires, as well as instant bank account verification. The company enables businesses to introduce instant payments and instant bank account verification with minimised costs for integrations. This aims to allow businesses and banks to launch additional payment experiences that attract and monetise more customers. Currently, Orum is supported by investors such as Accel, Canapi, Bain Capital Ventures, Inspired Capital, Homebrew, Acrew, BoxGroup, and American Express Ventures, among others.

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Keywords: payments , FedNow, payment facilitator, payments orchestration, financial institutions, bank account
Categories: Payments & Commerce
Companies: Federal Reserve, Orum
Countries: United States
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Payments & Commerce

Federal Reserve



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