ACI Worldwide and Kinexys by J.P. Morgan have partnered to integrate the Confirm application from Kinexys Liink into ACI’s Fraud and Financial Crime solution. This integration enables financial institutions to verify payment details, including account and payee information, before transactions are initiated across various payment channels and regions.
As real-time payment volumes increase, banks and payment providers face growing challenges. According to the ACI’s Scamscope report, authorised push payment (APP) scams result in annual losses of USD 4.4 billion globally, projected to rise to USD 7.6 billion by 2028. Over 63% of these losses occur through real-time payment systems, with this percentage expected to reach nearly 80% within the next three years.
Real-Time Payment Verification
One of the major challenges in fraud prevention is the irrevocable nature of instant payments. Unlike traditional transfer methods, funds sent through real-time payment systems cannot be reversed once the transaction is completed. Therefore, post-transaction monitoring alone is insufficient for preventing fraudulent activities. As a result, there is growing pressure to move verification processes upstream, ensuring that account ownership and payee details are confirmed before money is transferred.
Kinexys Liink’s Role
Kinexys Liink functions as a peer-to-peer blockchain-based data sharing network used by banks for account validation in over 70 countries. It supports payment rail-agnostic verification requests and responses through a single connection, ensuring that each participant maintains control over their data.
The Confirm application integrated into ACI’s platform performs real-time checks to confirm the existence of an account, its openness, and the match between the intended recipient before payments are initiated. This capability is embedded within ACI Connetic, a cloud-native platform that unites account-to-account and card payments with AI-driven fraud prevention.
Strategic Integration
A Kinexys Liink general manager commented on the integration’s purpose to assist institutions in meeting account validation requirements and adapting to evolving regulatory landscapes. An official from ACI Worldwide highlighted that, given the real-time nature of instant payments, verification must also occur instantly before transactions can proceed, giving banks the ability to intervene preemptively.
The collaboration aims to address the fragmented approach many financial institutions currently use for fraud prevention, relying on channel-specific tools that do not apply consistent controls across different payment types. By integrating account validation and fraud decisioning into a unified enterprise platform, this partnership seeks to streamline compliance as regulatory expectations around account validation continue to change.
