Zage

Making the exchange of value magical and seamless for everyone.

High-Level Overview

Zage, Inc. is a financial technology company founded in 2020 and based in San Francisco, California, that offers a "pay by bank" platform combined with a rewards system primarily targeting online merchants and local businesses. It enables users to make payments directly from their bank accounts while earning rewards, aiming to streamline transactions and enhance customer loyalty. Zage is not a bank itself; banking services are provided by Piermont Bank, with FDIC insurance coverage for accounts. The company’s product addresses the friction in digital payments by eliminating intermediaries, thus improving speed, cost, and user experience for merchants and consumers alike. Its growth is supported by backing from Y Combinator and other early-stage investors, reflecting momentum in fintech innovation focused on payments and rewards[1][2][3][5].

Origin Story

Zage was founded in 2020 by Arsh Shah Dilbagi, along with co-founders including Ryan Ozminkowski and formerly Cole Bransford (CTO). The idea emerged from the desire to create a seamless, magical exchange of value that simplifies payments and incentivizes users through rewards. The company participated in Y Combinator’s Summer 2021 batch, which provided early funding and validation. The founders’ backgrounds in technology and fintech helped shape Zage’s focus on building a banking and payments platform that removes middlemen in transactions, particularly for local businesses and their customers. Early traction included integration with Piermont Bank for issuing Visa debit cards and establishing a rewards program to drive user engagement[1][3][5].

Core Differentiators

• Direct Bank Payments: Zage enables users to pay directly from their bank accounts, bypassing traditional card networks and payment processors, reducing costs and increasing transaction speed.
• Rewards Integration: Users earn rewards on payments, incentivizing frequent use and loyalty, which benefits both consumers and merchants.
• Banking Partnership: While not a bank, Zage partners with Piermont Bank to provide FDIC-insured accounts and Visa debit cards, ensuring regulatory compliance and trust.
• Focus on Local Businesses: The platform is tailored to support local merchants by simplifying payment acceptance and enhancing customer retention through rewards.
• User Experience: Emphasizes a seamless, magical exchange of value, aiming to reduce friction in payments and improve the overall consumer and merchant experience[1][2][5][6].

Role in the Broader Tech Landscape

Zage rides the growing trend of fintech innovation focused on direct bank payments and embedded finance, which seeks to reduce reliance on traditional card networks and payment intermediaries. The timing is favorable due to increasing consumer demand for faster, cheaper, and more rewarding payment methods, alongside merchants’ need to reduce transaction fees and improve customer loyalty. Market forces such as the rise of open banking, real-time payments infrastructure, and digital wallets support Zage’s model. By integrating payments and rewards directly with bank accounts, Zage contributes to the broader ecosystem shift toward more transparent, efficient, and user-centric financial services, particularly benefiting local businesses that often face higher costs and complexity in payment processing[1][2][5].

Quick Take & Future Outlook

Looking ahead, Zage is positioned to expand its user base and merchant partnerships by leveraging its unique pay-by-bank and rewards model. Trends such as increased adoption of open banking APIs, real-time payment rails, and consumer preference for integrated financial experiences will shape its growth trajectory. The company’s influence may evolve as it potentially broadens its product suite to include more embedded financial services or deeper loyalty programs. Continued innovation and scaling could enable Zage to become a key player in transforming how local businesses and consumers transact, making payments more seamless and rewarding while challenging traditional payment networks[1][3][5].