- JP Morgan’s blockchain division Kinexys partners with Nacha’s Phixius to enhance bank account validation for US ACH payments.
- This partnership aims to reduce payment errors and fraud, especially important as payment systems become faster globally.
JP Morgan’s Kinexys is teaming up with Nacha’s Phixius platform to improve the accuracy of US payments by pre-validating bank accounts before ACH transactions occur. According to the announcement, Kinexys Liink will become one of several validation solutions offered through Nacha’s Phixius API, which connects banks to ten different validation services.
The partnership addresses a critical need in the payments industry as transaction speeds increase. Payment errors remain common and costly for banks that must handle routing mistakes due to incorrect account details. JPMorgan.com/kinexys/liink”>Kinexys Liink’s Confirm service offers account validation capabilities for billions of bank accounts worldwide, helping to reduce these errors.
Mutual Benefits for Both Networks
The collaboration works in both directions, creating value for customers of both platforms. Kinexys will utilize Phixius for validating US accounts, while Phixius users gain access to Liink’s global bank account validation services.
“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,” said Rob Unger, Managing Director of ACH Network Development at Nacha.
Evolution of JP Morgan’s Blockchain Initiatives
Liink has come a long way since its inception nearly eight years ago when it was first launched as the Interbank Information Network. Initially created as a permissioned blockchain data sharing network, its original purpose was to address compliance queries, particularly for cross-border transactions.
Today, Kinexys offers several high-profile blockchain services beyond Liink. These include Digital Payments (previously known as JPM Coin), along with support for intraday repurchase agreements (repo), tokenized collateral, and bond issuance services.
The National Automated Clearing House Association (Nacha) continues to play a crucial role in the US payments infrastructure by managing the ACH payment network, one of America’s primary payment rails. Their Phixius API now strengthens this position by connecting financial institutions with multiple validation solutions, including the newly added Kinexys Liink service.
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