Orum, a provider of payments APIs, has developed a product called Verify that leverages the new FedNow rail to instantly verify the validity of US-based consumer and business bank accounts. The technology, Verify, can determine whether a bank account is open and valid within 15 seconds, streamlining the payment initiation process.
Traditionally, businesses have used outdated methods to verify bank accounts, such as slow microdeposits that require manual entry by users, batched historical data that doesn’t reflect real-time changes, and the manual input of end-user login credentials. Orum argues that while credential-based verification has gained popularity in the consumer space, it is not sufficient for B2B payments.
The recent launch of FedNow has enabled Orum to develop technology that taps into the new payment rail, providing real-time account information to businesses. This rich data is automatically sent back to businesses via a webhook, offering real-time results and eliminating the need for customer involvement in the bank account verification process.
Stephany Kirkpatrick, CEO, Orum, says: “Failed payments cost the global economy over $100B each year. Lost time verifying accounts equals lost revenue and ultimately lost customers. This is especially true for business bank accounts, which are notoriously difficult to verify.
“Businesses need confidence they are debiting or crediting a real account to ensure the payment lands safely in the bank account, but most solutions today are slow or don’t include coverage for all B2B use cases. Verify – built on top of FedNow – has changed this equation, making it now possible to verify any type of bank account instantly.”