Emerging Technologies, Services Drive Payment Rail Innovation

payment rails

This week’s round-up of the newest innovations in payment rails for B2B payments shows a key focus on improving upon existing rails — and fueling adoption of new ones.

To that end, a FinTech is enabling intelligent routing of transfers through existing rails, while a financial services provider to credit unions (CUs) is offering funding management services to facilitate real-time payments.

Plus, a data analytics FinTech has become a Nacha Preferred Partner for ACH Account Validation.

Orum Lands $21 Million To Expedite Money Movement Times

As it works to expedite bank payments over existing rails, Orum has notched $21 million in a Bain Capital-led Series A funding, Forbes reported.

The Foresight offering from Orum collects information via financial institution (FI) relationships and evaluates the risk of a transaction by the way of machine learning (ML). In addition, the company’s Momentum product smartly routes transfers through rails such as automated clearing house (ACH), among others.

First Horizon, a Tennessee-based bank, and SoFi, the digital bank, are among Orum’s 15 customers. Orum reportedly has 50 customers on its waitlist.

Corporate One Funding Management Goes Live For CUs Using RTP Network

In an effort that helps fuel the adoption of real-time payments, Corporate One Federal Credit Union, a wholesale provider of financial services to CUs, said its funding agent service is now accessible for CUs on The Clearing House’s real-time payments (RTP) network. The offering enables around-the-clock funding management for those financial institutions.

Crane Credit Union is the first CU to harness Corporate One as its funding agent, according to a Tuesday (April 13) announcement. That CU is now operational on the RTP Network for receive only, while it is linked in through Jack Henry & Associates’ JHA PayCenter.

“Financial institutions of all sizes can leverage the funding management expertise of Corporate One and the technology connectivity of Jack Henry to join the real-time payments revolution relatively easily,” Steve Ledford, senior vice president of product strategy and development at The Clearing House, said in the announcement.

Tranglo Uses Existing Rails To Facilitate Cross-Border Payments

Tranglo provides a virtual account service to firms that lets them send and receive money internationally without needing to open separate bank accounts by using existing rails. Through application programming interface (API), Tranglo links up with payment rails already in place to transmit transaction instructions and then harnesses its own payment processing network to allow for local payout.

CEO Jacky Lee explored in a previous PYMNTS interview why the correspondent banking system still remains so sticky, and what third-party financial technology firms can do to mitigate the most significant international money-moving pain points for companies.

In March, Ripple revealed plans to purchase a 40 percent stake in Tranglo in a deal that highlights distributed ledger technology (DLT).

Advanced Fraud Solutions, Access Softek To Combat Fraud On Outbound Payments

To let financial institutions (FIs) and companies keep tabs on outbound check and ACH payments, deposit fraud detection software company Advanced Fraud Solutions (AFS) has teamed with digital banking technology company Access Softek. AFS Positive Pay will connect with the Access Commercial offering from Access Softek.

FIs and companies will get in-the-moment notifications if payment data is marked as “potentially suspicious,” according to a Tuesday (April 13) announcement. Access Softek Founder and CEO Chris Doner said in the announcement that the new tie-up would work to “immediately strengthen vendor and payroll fraud protections for our banking partners.”

Accelitas Becomes Nacha Preferred Partner for ACH Account Validation

Accelitas, a data analytics FinTech, has become a Nacha Preferred Partner for ACH Account Validation, according to a Wednesday (April 14) announcement. The company provides in-the-moment ACH validation for low-cost account validation checks. It offers more in-depth account screening for loans, among different kinds of high-value transactions.

“We are proud to be a Nacha Preferred Partner and are looking forward to working with complementary organizations to facilitate efficiencies and innovation across the ACH Network,” Accelitas CEO Greg Cote said in the announcement.