Digital banking solutions company Tyfone has formed Payfinia, a new entity centered around instant payments.
The new venture relies on Tyfone’s digital banking user experience expertise, developed through its Instant Payment Xchange (IPX), a money movement gateway to the FedNow Service, the company said in a Tuesday (Oct. 15) news release.
The IXP, the release said, has already converted nearly 30% of same-day ACH credit transactions to send transactions on push instant payment systems, routing existing payment solutions through networks like FedNow.
“This shift enhances operational efficiency and fraud prevention,” the release said. “With the launch of Payfinia, Tyfone is poised to further revolutionize instant payments by elevating the digital user experience across the landscape.”
Siva Narendra, CEO of Tyfone, added that the IPX has allowed the company to see 50% fewer cases of fraud compared to same-day ACH and fourfold reductions over other P2P offerings.
“As we launch Payfinia, we’re doubling down on security with cryptographic, deterministic methods aimed at countering AI-driven fraud risks, while ensuring instant payments remain efficient, secure and accessible,” said Narendra.
As noted here last month, the launch of FedNow alongside The Clearing House’s Real Time Payments (RTP) network, is progressively integrating instant payments into the financial landscape, a sign of a promising future for this payment method.
More than 480 financial institutions are taking part in RTP, while upwards of 900 are involved with FedNow. FedNow’s rollout has sped the adoption of real-time payments “by facilitating diverse use cases such as payroll, loan disbursements and insurance claims,” PYMNTS wrote.
“Looking forward, 68% of businesses plan to adopt instant payments via RTP or FedNow within the next two years,” that report said. “This enthusiasm spans various sectors, including 81% in consumer and retail, 75% in hospitality and leisure, and 70% in healthcare. These figures highlight a recognition of instant payments’ potential to enhance liquidity management and boost customer and vendor engagement.”
At the same time, there are challenges involved with integrating instant payment rails. For example, financial institutions face technological and operational obstacles with systems like FedNow, requiring them to upgrade existing technology.
“Addressing these barriers requires strategic approaches, including simplifying integration with clear technical guides, encouraging dual-pathway innovation, and developing modular, scalable solutions,” PYMNTS wrote. “These strategies can help financial institutions and FinTechs overcome obstacles and advance the instant payments landscape.”
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