ChainIT and RS Software Bring Continuous Identity Checks to Instant Payments

ChainIT and RS Software have formed a product alliance to combine transaction-risk scoring with biometric identity verification for account-to-account payments on instant networks such as FedNow and RTP.

The joint system evaluates identity and fraud signals for each transaction instead of relying only on checks performed when an account was opened. It is intended to address account takeover and authorized push-payment scams, both of which can exploit a valid account after initial onboarding.

RS Software contributes its IntelliEdge risk platform, which scores a payment using behavioral, device and contextual information. ChainIT adds biometric identity verification and Validated Data Tokens, cryptographically anchored records designed to show who authorized a payment and whether that person had authority to do so.

When the combined score crosses a threshold, the financial institution’s policies determine what happens next. The bank or payment provider can request additional verification, place the transaction on hold or allow it to proceed. The framework supplies a rationale for the score and a tamper-evident audit record, but leaves the decision with the institution.

The World Bank recently proposed a verifiable-credential model for portable payment identities, aimed at reducing repeated onboarding while preserving assurance across providers.

Biometrics are also moving closer to transaction authorization. ICICI Bank enabled biometric confirmation for UPI payments in its mobile app, giving users an alternative to entering a payment PIN for eligible transactions.

ChainIT and RS Software are extending their model to business payments, where the identity of an employee or agent must be connected to the agreement that permits the transfer. The system can also flag changes in counterparty risk that may not have been visible during onboarding.

The capability is designed to supplement existing fraud platforms. It will be incorporated into ChainIT Pay, RS DigitalEdge and Payabbhi as well as offered for integration with financial institutions’ current payment systems.

Sources: ChainIT and RS Software

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By the ID Tech Editorial Team