A new collaboration between Phixius by Nacha and Kinexys Liink has emerged to improve payment data sharing. The networks have agreed to exchange information that will allow near real-time validation of domestic bank accounts. This effort aims to support financial institutions, FinTech companies, and corporations seeking efficient data verification while addressing security concerns in payment processes.
Reports from previous months highlighted Phixius’s successful launch in November 2020 and Kinexys Liink’s rapid growth since 2019. Earlier briefings underlined robust transaction volumes and evolving financial services. The current initiative builds on these foundations, reflecting continuous industry efforts to enhance data integrity in payment ecosystems.
What benefit does enhanced account validation bring?
Enhanced account validation provides near real-time verification of domestic bank account data, directly supporting secure payment processing. The capability assists in reducing risks like ACH returns and payment fraud.
Kinexys Liink and Phixius customers can benefit by validation services using data provided by either network, helping to mitigate payment fraud and reduce potential ACH returns.
This service streamlines interactions and potentially lowers financial exposure in transactional environments.
Can network collaboration curtail payment fraud?
Collaboration between distinct networks bolsters cross-border and domestic payment security. By integrating data from both partners, financial entities can access wider account validation capabilities that work against fraudulent activities.
Through the collaboration with Phixius by Nacha, we look forward to expanding the reach of Kinexys Liink to further strengthen account validation and cross-border payment infrastructure globally.
Shared data enhances the overall reliability and trustworthiness of payment channels.
Under the agreement, Phixius will serve as the key U.S. responder for Kinexys Liink, facilitating prompt bank account verifications. The Confirm application from Kinexys Liink will extend its global validation services to participants in the Phixius network, thereby reinforcing the payment infrastructure across multiple regions.
Phixius, which went live in November 2020, facilitates secure payment information exchanges without relying on a centralized repository. Kinexys Liink, a bank-led network within Kinexys by J.P. Morgan, has processed substantial transaction volumes since its inception, and its service portfolio now includes features like Programmable Payments to support automated treasury workflows.
The collaboration reflects a deliberate drive in the payments industry to secure data exchange and verify accounts in real time. Network interconnectivity may contribute to reduced cases of fraud and lower transaction reversals, offering a model for similar partnerships in the financial sector.
