With this integration, Sionic can offer real-time, bank-to-bank payments at the point of sale, the company said in a Wednesday (Aug. 12) news release.
“Sixteen years ago, we set out to build the future of low-cost payments in America. Today, that future is here. Instant Bank Pay is the real-time, bank-to-bank payment service for commerce in the U.S.,” said Ronald Herman, Sionic’s founder and CEO. “Using Microsoft Foundry has helped us bring it to merchants, businesses, and financial institutions.”
According to the release, the service uses the FedNow® Service and the RTP® Network through banking partners to send cash digitally within seconds from payers’ checking accounts to payees. Sionic said it had begun a pay-by-bank proof of concept in late 2024, but found there were crucial pieces necessary from both bank rails.
These include no alias directory like the one found with Zelle; no fraud detection for point-of-sale transactions; and no support for payment disputes. Microsoft Foundry helped fill those voids.
For instance, a customer seeking a refund triggers an AI agent that negotiates with an agent representing the seller, removing financial institutions from the scenario unless an escalation is needed, the release said.
“Organizations like Sionic are helping advance U.S. payments with solutions that foster innovation while expanding the value and reach of the FedNow Service,” said Nick Stanescu, executive vice president and chief FedNow executive. “As the ecosystem continues to grow and evolve, we move toward our long-term goal of delivering reliable, efficient and widely accessible instant payments for all.”
The new offering comes at a time when many businesses’ real-time payment capabilities still have some work to do, as recent PYMNTS Intelligence research has found.
“The findings show a clear gap between the tools firms own and the results they achieve. Nearly every firm surveyed has secure bank connectivity,” PYMNTS wrote earlier this week. “Many also use real-time identity checks and several layers of fraud screening. Yet these tools often cover only selected payments or limited parts of the payment process. That leaves businesses exposed when funds move faster than their teams can review them.”
The report also explores what companies plan to improve next, with 70% saying they expect to adopt or expand automated payment matching in the next 12 months. Meanwhile, 65% said they hope to bolster identity verification, and another 59% plan to expand secure bank connectivity and artificial-intelligence-powered fraud detection.
