JP Morgan collaborates with Nacha for validating Accounts via ACH and blockchain technology
In a move to modernize and improve the efficiency of the ACH payment landscape, JP Morgan's blockchain division, Kinexys, has partnered with Phixius by Nacha. This collaboration aims to pre-validate bank accounts for US payments using ACH, thereby reducing payment errors, increasing success rates, and improving overall efficiency.
The partnership leverages Kinexys Liink's blockchain-powered capabilities to provide secure, real-time account verification. By ensuring the recipient's bank account details are accurate prior to payment initiation, this collaboration reduces risks associated with failed payments and fraud, while enhancing the speed and reliability of ACH transfers.
Nacha, which manages the ACH payment network, one of the primary payment rails in the United States, will be a key beneficiary of this collaboration. Phixius, an API that enables banks to access validation information from ten different solutions, will be a central component of this partnership.
Phixius users can now use Liink to validate global bank accounts, while Kinexys Liink customers can utilize Phixius for US account validation. This two-way relationship is expected to benefit both parties, reducing payment fraud and potential ACH returns, as stated by Rob Unger, Managing Director of ACH Network Development at Nacha.
Kinexys Liink's Confirm service, an account validation service that allows for the validation of billions of bank accounts worldwide, is one of the features that will be offered by Phixius. This service is expected to play a crucial role in ensuring the accuracy of bank account details in the ACH payment process.
The original aim of the permissioned blockchain data sharing network, Liink, was to address compliance queries, especially across borders. Over the years, Kinexys has expanded its services to include support for bond issuance, intraday repurchase agreements (repo), tokenized collateral, and digital payments, previously known as JPM Coin.
This partnership marks almost eight years since JP Morgan launched Liink, originally called the Interbank Information Network. Since then, Liink has proven to be a valuable tool in the financial industry, providing secure and efficient solutions for various financial transactions.
In conclusion, the collaboration between Kinexys Liink and Phixius by Nacha is set to revolutionize the ACH payment landscape by providing blockchain-enabled global account validation solutions. This partnership underscores the growing importance of blockchain technology in the financial sector and the continuous efforts to improve the efficiency and security of financial transactions.
- The collaboration between Kinexys Liink and Phixius, facilitated by Nacha, utilizes blockchain technology to enhance the accuracy of bank account details in the ACH payment process, reducing risks associated with failed payments and fraud.
- By providing secure, real-time account verification through Liink, this partnership aims to increase the success rates, speed, and reliability of ACH transfers in the finance industry, and it may also benefit businesses by reducing payment errors.
- The incorporation of Phixius, which allows banks to access validation information from ten different solutions, and Kinexys Liink's Confirm service, an account validation service that supports the validation of billions of bank accounts worldwide, highlights the growing role of blockchain technology in streamlining and securing various aspects of the finance and business sectors.
