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Nacha, the rules-setting organization for the automated clearing house network, early Thursday announced its Phixius peer-to-peer payment data network has integrated with Kinexys Liink, a data-sharing network from J.P. Morgan Chase.
The significance of the integration lies in its ability to generate account validation from multiple responders for ACH transactions, Nacha says. Validation responses come from Nacha but are based on multiple sources in the Phixius network, the ACH group says. The integration also enables Phixius to act as an information provider for Kinexys Liink clients, which enables validation in real time for domestic bank-account information.
The responder model, based on multiple sources, “delivers clear value to data requesters,” noted Rob Unger, managing director of ACH network development at Nacha, in a statement. The integration also meets “the growing need for accurate account validation,” he added.
For its part, Kinexys hailed the benefit of making cross-border payments, in particular, more secure through the link to Phixius.
Kinexys Liink works with blockchain technology to generate data and smooth transaction data exchange, J.P Morgan says, serving to provide near real-time validation of bank-account ownership and transaction status. The aim, the bank says, is to manage fraud risk and reduce payment errors in cross-border payments.
Nacha saw its first Phixius transaction in 2020, and in 2022, began allowing originators, fintechs, and financial institutions to verify payment-related data, including account ownership, account numbers, and routing information.
