Development of P2P and ACH Payment Functionality for a Digital Banking Platform

The client faced limitations in providing a seamless and comprehensive payment experience within their neobank platform. Initially launching with minimal payment features, they required integration of P2P and ACH transfer capabilities to meet user demand for quick, error-free interbank transactions and to increase customer engagement. The absence of direct interbank transfer options forced users to rely on third-party services, undermining user experience and operational efficiency.

A digitally-native neobank with a focus on delivering streamlined personal banking services to a tech-savvy customer base, seeking to enhance their platform with advanced payment capabilities.

• Implement P2P payment functionality enabling instant transfers within the platform.
• Enable ACH payment transactions for external bank-to-bank transfers with same-day processing.
• Reduce fraudulent transactions through customizable antifraud rules, targeting at least a 40% decrease in fraudulent activities.
• Create a user-centric, streamlined transaction flow to enhance ease of use and decrease transaction time with minimal user interactions.
• Integrate third-party financial tools to support ACH transactions and ensure interoperability with external bank accounts.
• Conduct comprehensive testing (functional, security, performance, compliance) to ensure robust, secure, and regulation-compliant payment solutions.
• Increase overall user engagement and loyalty by expanding payment functionalities.
• Expand the customer base by providing essential interbank transfer features, attracting users needing frequent external transactions.
• Boost revenue through increased transaction volume, particularly leveraging same-day ACH transfers.

• Integration with banking-as-a-service (BaaS) platforms for instant P2P payments.
• Implementation of split payment functionalities for group transactions such as dining or shared rides.
• Integration with third-party finance platforms for ACH capabilities, including account creation and transfer initiation.
• Support for same-day ACH transactions to eliminate delays associated with traditional ACH processing.
• Design of a secure, user-friendly payment flow using a component-based UI library to minimize clicks and screens.
• Development of customizable antifraud transaction rules with an admin panel for adjustment and monitoring.
• Regulatory compliance features to ensure adherence to financial transaction standards.
• Robust testing protocols covering functional, security, user acceptance, performance, and compliance testing.

• Banking-as-a-Service (BaaS) providers for instant P2P payments.
• Third-party finance platforms for ACH transaction processing, account management, and confirmation.
• Fraud detection and prevention systems for security and compliance.

• Transactional system capable of handling increased load with minimal latency, ensuring smooth user experience.
• Security measures compliant with financial regulations, including data encryption and fraud detection.
• System uptime target of 99.9% to ensure reliable payment processing.
• Ability to handle scalable growth in transaction volume as user base expands.

The implementation of robust P2P and ACH payment functionalities is expected to significantly enhance user engagement and loyalty, attract new users requiring reliable interbank transfer options, and generate higher revenue through increased transaction volume, particularly leveraging same-day ACH capabilities. These improvements will position the platform as a leading comprehensive digital banking solution with a seamless transaction experience.