Nacha Developing Blockchain Platform To Enable Sharing Of Payment-Related Informationbr>
National Automated Clearing House Association (Nacha) is developing a blockchain-based platform to modernize and streamline the payments process.
Nacha is a non-profit organization that manages the development, administration, and governance of the ACH Network, the backbone for the electronic movement of money and data in the United States. Nacha also leads groups focused on API standardization and B2B payment enablement.
In a pres release, Nacha announced that it is developing Phixius, an online platform that integrates blockchain technology, rules and participants to exchange payment-related information across all payment types.
“Phixius is intended to enable companies to exchange payment-related information regarding products and services to improve fraud protection, automate manual processes and improve customer experiences,” Nacha said. “It can be used to reduce the cost of producing and sending checks and standardize information sharing. Nacha plans to make Phixius available to early adopter organizations in May 2020.”
According to Nacha, the current use of bilateral agreements creates inefficiency and restricts broader participation. In addition, existing manual processing results in administrative errors, misdirected payments and opportunities for fraud.
“Traditionally, the exchange of payment-related information has consisted of multiple bilateral agreements,” said George Throckmorton, Nacha Managing Director and Executive Director of Afinis Interoperability Standards. “Unfortunately, that limits broader industry adoption and fails to address today’s interoperability expectations. Phixius changes all of that. Phixius eliminates the need for multiple data exchange agreements by leveraging blockchain technology, standardization and rules that govern network participants.”
Phixius will reportedly leverage blockchain, Afinis interoperable and standardized APIs, and ISO 20022 to provide the necessary features and functionality to safely and securely facilitate payment information exchange among all participants.
Nacha also announced a partnership with Ernst & Young LLP (EY) to help develop Phixius.
“EY is delighted to work with Nacha on the development of Phixius,” said Jennifer Lucas, Managing Director, Ernst & Young LLP and the EY Americas FSO Advisory Payments Lead. “This industry platform is designed to address many pain points in the adoption of electronic payments.”