Tyfone Spins Off a Real-Time Payments Company;  Shazam Links With i-payout for Real Time

Tyfone Inc., a provider of consumer and commercial digital banking services for community banks and credit unions, has launched Payfinia Inc., a separate company that provides real-time payments technology.

Payfinia’s flagship product will be the Instant Payment Xchange (IPX), which provides consumers with the ability make an account-to-account payment using a real-time payments network, a faster option than the automated clearing house network’s same-day payments service. IPX has converted nearly 30% of same-say ACH credit transactions so far to real-time payments through such networks such as FedNow.

IPX was developed in conjunction with Silicon Valley-based Star One Credit Union as a way to provide its high-net-worth members a real-time, account-to-account payment option, the company says. About 10 financial institutions are in various stages of rolling out IPX, the company says.

Payfinia has developed a fraud-mitigation tool that allows financial institutions to set tiered limits when sending real-time payments, such as transaction velocity, based on customer usage patterns. For example, a customer may initially be limited to sending no more than $500 per transaction, then may see that amount increase or decrease over time based on the customer’s risk profile.

“A lot of financial institutions start with instant payments at the receiving end to mitigate the risk of fraud,” says Keth Riddle, senior vice president of business development for Payfinia. “We gather the data for the financial institution to help them understand customer behavior, then the financial institution sets the limits.”

Another feature of IPX is that it allows banks to determine which transactions, such as a wires, can be converted to real-time payments. “We’ve built a concierge model where we identify what payments can be converted to real-time payments, and let the financial institution decide what to charge for that transaction,” says Riddle. “We also allow financial institutions to implement dual approval by the sender and recipient.”

In related news, electronic funds transfer network Shazam has partnered with International Payout Systems Inc. to leverage IPS’s i-payout real-time payments platform. The partnership will enable Shazam users to access their earned wages or funds in real time, a Shazam spokesperson says by email.

Enabling real-time payments for wages is expected to help speed funds for freelancers, workers, and organizations. Shazam users can facilitate real-time payments in 30 seconds through i-payout.

“The partnership with i-payout helps Shazam bring our technology to the forefront of the ever-increasing demands of consumers and businesses,” the spokesperson says.

Demand for real-time payments is growing, with more than 70% of consumers indicating they would choose real-time options over traditional bank transfers, according to Shazam.

“The payment trends show that [users] expect their money quicker, and i-payout has developed and brought to market this capability,” says the Shazam spokesperson.  “Our partnership gives i-payout access to open banking as well as the U.S. payment rails, while we can help expand Shazam’s longevity in the ever-evolving payment space.”