US clearing house Nacha is to use blockchain technology to build Phixius, an online platform to ease the exchange of payment-related information between companies.
Traditionally, the exchange of payment-related information has consisted of multiple bilateral agreements, which are costly to administer and often run manually, resulting in misdirected payments and opportunities for fraud.
The new online platform will integrate technology, rules and participants to streamline the payments process, using a combination of distributed ledger technology, new ISO 20022 messaging standards and APIs provided by Nacha interoperability subsidiary Afinis.
George Throckmorton Nacha managing director and executive director of Afinis Interoperability Standards, states: “Phixius eliminates the need for multiple data exchange agreements by leveraging blockchain technology, standardisation and rules that govern network participants.”
Nacha has contracted with Ernst & Young to build the platform, which is slated for roll out to early adopter organisations in May.