PORTLAND, Ore.—Payfinia CUSO, which supports an open payments platform for credit unions, has opened its doors for business backed by a $4.5-million investment from Star One Credit Union, the organization reported.
Payfinia originated in 2023 when digital banking provider Tyfone and its customer, the $9.9-billion Star One CU, based in Sunnyvale, Calif., collaborated to build Instant Payment Xchange (IPX). IPX is an open, payments-as-a-service (PaaS) framework certified to send and receive instant payments on the FedNow Service, Payfinia noted.
“Star One is proud to support Payfinia and its vision of making instant payments accessible to all account holders in the U.S.,” said Gary Rodrigues, CEO of Star One. “The IPX solution empowers our members to take control of their cash flow. So far, the IPX solution has displaced 25% of same-day ACH transactions, with 53% fewer fraud losses compared to same-day ACH and an 83% reduction in operational overhead for P2P payment networks.”
According to Payfinia’s data, demand for low-friction, account-to-account transfers continues to grow, representing the bulk of instant payments processed through the networks.
“Early adopters of Payfinia’s IPX platform are experiencing similar results, processing transactions faster, lowering fraud exposure, and generating operational efficiencies across their organizations,” said Nizar Jamal, COO and CTO of Payfinia.
Payfinia said it believes a central bank-run instant payments system is essential for “broad accessibility.”
“Payfinia is also partnering with a range of firms to embed instant payment capabilities within their digital experiences and accelerate use cases for consumers and businesses, including core processors, third-party digital platform providers, and fintechs. For enhanced resilience and to broaden options for our partners, Payfinia will integrate IPX platform capabilities with The Clearing House RTP® network in early 2025,” the CUSO said.