VSoft Partners with Pidgin to Enable Real-Time Payments

VSoft, a prominent player in payment solutions, has unveiled a strategic collaboration with real-time payments provider Pidgin. The integration of their platforms is set to change transaction processing by facilitating real-time payments across various payment channels, including the Federal Reserve’s FedNow Service and The Clearing House’s Real-Time Payments Network, as reported in The PYMNTS News. This partnership empowers VSoft’s core processing solution, Wings, to provide seamless real-time transaction processing capabilities.

Moreover, VSoft’s Arya digital banking platform will also integrate with Pidgin’s real-time payments solution, allowing financial institutions to offer instantaneous payment options via online and mobile banking platforms.

Murthy Veeraghanta, Chairman and CEO of VSoft, highlighted the significance of enabling real-time transaction processing, particularly in light of the growing mainstream adoption of instant payments following the launch of the FedNow Service. Veeraghanta emphasized that modern financial institutions require flexible core systems to swiftly introduce new payment offerings and cater to diverse faster payment preferences.

According to Abhishek Veeraghanta, Founder and CEO of Pidgin, both consumers and businesses are displaying a strong interest in real-time payment options provided by financial institutions. This sentiment is reinforced by data from PYMNTS, indicating that 80% of Americans express keenness for faster payment alternatives when making purchases or paying for services.

Despite the surging demand for real-time payments over the past five years, availability has remained limited to a relatively small subset of businesses and consumers. A PYMNTS report from March revealed that instant payments constituted only 2% of corporate disbursements sent and a mere 1.3% of payments received. However, the landscape is evolving rapidly as both merchants and customers respond to the growing call for real-time payment capabilities.

Recent research conducted by PYMNTS in conjunction with The Clearing House has illuminated the sluggish adoption of modernized payment methods within the real estate sector. While digital payment mechanisms like ACH are commonly embraced by almost all businesses in this sector, the utilization of real-time payments remains strikingly low.

The report outlined legacy IT obstacles as a major deterrent, cited by 62% of surveyed companies, alongside concerns about associated costs, mentioned by 56% of firms. This hesitance is in stark contrast to other industries like manufacturing, where the majority of companies have already embraced real-time payments to a substantial degree.

The collaboration between VSoft and Pidgin represents a significant leap towards enabling real-time payments on a broader scale. As consumer demand for instantaneous transactions continues to surge, financial institutions must adapt by embracing innovative solutions that cater to modern payment preferences.

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