Tyfone announced the formation of a new spinout today. The company launched the new entity, Payfinia, to provide instant payment solutions to both financial institutions and third-party organizations.
Payfinia aims to help financial institutions access and establish ownership of their instant payments services. The company also helps third-party organizations across various industries integrate instant payments with traditional payment tools into their existing payment and money movement use cases including A2A, P2P, Bill Payment, B2B and B2C disbursements.
Tyfone formed Payfinia by shifting its IP and technology, including advanced UX and security protocols, to the new company. Payfinia hinges on Tyfone’s Instant Payment Xchange (IPX), a money movement gateway to FedNow that will serve as Payfinia’s flagship offering.
Tyfone launched its IPX platform in July 2023, in conjunction with the Federal Reserve’s FedNow instant payment service. Since launch, IPX has converted nearly 30% of same-day ACH credit transactions into send transactions on push instant payment systems, routing existing payment solutions through networks like FedNow. Launching Payfinia will help Tyfone further build on the instant payments experience.
“We’ve seen remarkable results with our Instant Payment Xchange, achieving 50% less fraud compared to Same-Day ACH and fourfold reductions over other P2P solutions,” said Tyfone CEO Siva Narendra. “As we launch Payfinia, we’re doubling down on security with cryptographic, deterministic methods aimed at countering AI-driven fraud risks, while ensuring instant payments remain efficient, secure and accessible. This is just the beginning of Payfinia’s impact across industries.”
Integrating FedNow’s instant payments service, which the U.S. Federal Reserve launched in July of 2023, has led to a host of challenges for banks. These challenges include building a complex integration for real-time payment systems, maintaining compliance with security standards, and ensuring a seamless user experience across digital platforms.
With IPX, Payfinia is positioned to help financial services companies overcome these obstacles. That’s because the IPX platform offers real-time connectivity to both FedNow and RTP networks, helping banks eliminate the need for multiple integrations when adopting both instant payment systems. Additionally, Payfinia provides enhanced security and compliance as well as user-friendly digital tools that can help firms integrate the new technology into their existing interface. Payfinia also ensures a scalable, unified experience across multiple channels.
Tyfone is one of the earlier Finovate alums, having demoed at the first Finovate event to take place in San Francisco– FinovateSpring 2008. At the show, Tyfone Co-Founder Siva Narendra demoed a memory card for a mobile phone that facilitated contactless payments. The company, which used to focus on mobile-only solutions, began developing for multiple channels in 2014.
Tyfone was founded in 2004 and provides digital banking and payment solutions. In addition to its instant payments tools, the Oregon-based company offers nFinia, an enterprise solution that allows community financial institutions to deliver a hyper-personalized digital banking experience to both retail and commercial customers. The configurable solution offers more than 300 financial functions and provides an open ecosystem with direct integrations with more than 160 players.
Photo by Pixabay
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