By launching the Ephemeral Token Software, Vaiu Global works towards speeding up the implementation of instant payments, including the US Federal Reserve’s FedNow real-time payments system across banking.
In addition, Vaiu is set to be among the first services to improve the security and usability of FedNow, with the firm’s software protocol allowing banks to implement token-based withdrawals and deposits. Through this, Vaiu intends to mitigate the need to exchange credentials, such as ID, phone numbers, and email, when conducting a payment. Vaiu bank tokens are six recognisable characters that are simple to read, write, and speak, which provides a consistent and universal payment experience.
Vaiu Global’s patent-pending software aims to integrate with legacy banking systems to allow safer withdrawals, spending, giving, and depositing, leveraging real-time payment rails. This focuses on substantially improving the user experience via bank-backed ephemeral tokens. When commenting on the announcement, representatives from Vaiu underlined their company’s commitment to supporting secured money movement without the technical and cost complexities of traditional and modern payment methods. Also, the company’s token-based protocol plans to accelerate the acceptance of FedNow of any other real-time payment rails for financial institutions and their customers, in turn optimising security and data protection throughout the real-time payment processing lifecycle.
Furthermore, through a user-friendly interface, Vaiu intends to offer a simple, low-cost overlay for banks to accelerate the adoption of sending and receiving real-time payments. At the same time, the company’s pre-funded tokens enable financial institutions to deliver businesses and consumers flexible value transfers across online and offline channels. When it comes to businesses, Vaiu’s service merges transactions and instant value transfers to provide augmented financial agility, fostering scaled trust and facilitating cost-effectiveness in cash flow management. Also, consumers can benefit from secure, real-time payments without needing to disclose sensitive account information, removing their proliferation and the risk of identity theft and fraud that result from misuse.
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