Alliance Overview
ChainIT and RS Software announced a product alliance aimed at delivering risk‑based authentication for account‑to‑account (A2A) payments that settle instantly and irrevocably, such as those processed over the Federal Reserve’s FedNow® Service and The Clearing House’s RTP® network. The partnership seeks to fill the gap left by the two‑decade‑old 3‑D Secure framework that protects card transactions but does not extend to instant A2A payments.
Continuous Risk Assessment
The joint solution continuously evaluates identity and fraud risk on every transaction in sub‑seconds, rather than relying on a one‑time verification at onboarding. RS Software contributes its RS IntelliEdge™ platform—a composable, customizable, explainable risk and fraud intelligence layer that operates on top of a client’s existing fraud tools—while ChainIT supplies biometric identity verification through ChainIT ID and ChainIT Organization ID, together with Validated Data Tokens that are cryptographically anchored, non‑transferable credentials confirming who authorized a payment and whether they had authority. The framework aggregates multiple independent signals—behavioral, device, contextual, biometric—and generates a risk score; when the score exceeds institution‑set thresholds, the financial institution’s policies dictate whether to require biometric verification, hold the payment, or allow it to proceed.
Regulatory Context and Market Drivers
Effective June 19 2026 (June 22 was the first banking day), Nacha’s Phase 2 fraud‑monitoring rules will require all ODFIs, RDFIs, non‑consumer originators, third‑party senders, and third‑party service providers to implement risk‑based processes for identifying unauthorized and misrepresented ACH payments. The need for such controls is underscored by Javelin Strategy & Research’s 2026 Identity Fraud Study, which estimates traditional identity fraud caused $27.3 billion in losses in 2025, and by the Federal Trade Commission’s report of more than $12.5 billion in consumer fraud losses in 2024—a 25 % year‑over‑year increase.
Technological Enhancements
The alliance leverages network‑level intelligence from payment networks, including the FedNow Service’s network intelligence API launched in April 2026, combining those signals with continuous behavioral, device, and contextual assessments to produce a pre‑settlement risk picture. The framework also produces a plain‑language rationale, a continuously updated risk score, and a signed, tamper‑evident record of who authorized the payment and with what authority, supporting fraud investigations and dispute resolution under Regulation E and UCC Article 4A.
Business Integration and Offerings
The risk score is designed to feed existing fraud platforms without requiring core migrations. Integration is underway for ChainIT Pay (payment initiation and processing), RS DigitalEdge (open API and multi‑rail orchestration), and Payabbhi (merchant acquiring and acceptance). Proof‑of‑concept engagements lasting eight to twelve weeks are now open for financial institutions treating fraud management as a strategic function, including third‑party service providers, mid‑tier banks, credit‑union service organizations, and payment service providers across various industry segments.
Market Coverage
RS IntelliEdge™ is reported to protect approximately 95 % of India’s digital payment transactions and to screen billions of transactions each month. ChainIT’s broader platform focuses on verified identity, Validated Data Tokens, Pactvera Smart Agreements, and auditable transaction workflows for banks, processors, fintechs, government agencies, ISVs, and regulated enterprises.
Executive Statements
“Identity verification is the primary gateway for preventing fraud, and Fraud Prevention has become the Core of Trust in payments. We are excited to partner with ChainIT to provide integrated front‑line attack in this multi‑billion‑dollar market opportunity,” said Raj Jain, CEO of RS Software. “Faster payments only work if you know who is on the other end,” added Jeremy Blackburn, CEO and Founder of ChainIT. “Our role is to prove who authorized a payment, confirm they had the authority to do it, and preserve the evidence in a form that supports dispute resolution. RS Software brings the risk engine that turns that proof into information a financial institution can act on in real time.”
Disclaimer
The release contains forward‑looking statements regarding anticipated benefits of the alliance, product integration plans, and proof‑of‑concept engagements. These statements involve risks and uncertainties; actual results may differ materially. The release does not constitute financial guidance, a projection of revenue or earnings, or an offer or solicitation of securities of RS Software (India) Limited.