Payfinia, an independent payments company committed to democratising instant payments, has launched the Payfinia Credit Union Service Organisation (CUSO).
The company has secured $4.5m in seed funding from Star One Credit Union, based in Sunnyvale, California. The credit union, which holds $9.9bn in assets and serves 126,000 members, has been a key collaborator in developing Payfinia’s flagship Instant Payment Xchange™ (IPX) platform.
Payfinia offers a comprehensive real-time payments solution through IPX, a payments-as-a-service (PaaS) framework certified to process transactions on the FedNow Service. The platform allows credit unions and financial institutions to execute instant payments with embedded fraud prevention, improving operational efficiency and cash flow management.
The newly raised funds will enable Payfinia to refine the IPX product roadmap and scale its integration capabilities. Notably, Star One Credit Union has already processed a series of $500,000 instant payment transactions through the platform, achieving settlement times of under five seconds. Payfinia highlighted the platform’s ability to handle dynamic user settings, permitting higher transaction limits while reducing fraud risks.
Star One CEO Gary Rodrigues remarked, “Star One is proud to support Payfinia and its vision of making instant payments accessible to all account holders in the US. 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.”
In addition to its FedNow Service capabilities, Payfinia plans to integrate with The Clearing House RTP® network by early 2025 to expand its payment solutions further. The company is also collaborating with third-party providers and FinTech firms to embed instant payment functionalities into their digital services.
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