Nacha Declares Blockchain-Based Payment Platform Phixius
U.S. clearinghouse Nacha declared last week that it is producing a blockchain-based platform to modernize and streamline payments process.
The current usage of bilateral agreements is not only ineffective but also limits broader participation. Besides, the existing processing infrastructure is mostly manual, leading to misdirected payments, administrative errors, and opportunities for fraud.
Nacha is developing ‘Phixius’ to surmount these difficulties. The platform combines blockchain technology, rules, and participants to automate the process of exchanging payment-related information across all payment types.
The goal is to empower companies to exchange payment-related data about products and services to enhance fraud protection, automate manual processes, and develop consumer experiences. Nacha has elected Ernst & Young LLP (EY) to help build Phixius.
“This industry platform is designed to address many pain points in the adoption of electronic payments,” stated Jennifer Lucas, Managing Director, Ernst & Young LLP, and the EY Americas FSO Advisory Payments Lead.
According to a press release, Phixius will leverage blockchain technology, Afinis interoperable and standardized APIs, and ISO 20022 to implement the necessary features and functionality to safely and securely promote payment information exchange among all participants.
“Traditionally, the exchange of payment-related information has consisted of multiple bilateral agreements. Unfortunately, that limits broader industry adoption and fails to address today’s interoperability expectations; Phixius changes all of that,” stated George Throckmorton, Nacha Managing Director and Executive Director of Afinis Interoperability Standards.
“Phixius eliminates the need for multiple data exchange agreements by leveraging blockchain technology, standardization, and rules that govern network participants.”
Nacha stated that the platform could be used to reduce the cost of producing and sending checks and standardize information sharing. It strives to make Phixius available to early adopter organizations in May this year.
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