NACHA, which manages the ACH Network in the US, has acquired the Business Payments Directory Association (BPDA) to bolster its capabilities in the B2B payments space.
BPDA will retain its independence, serving as a self-governed group under NACHA.
The partnership will support BPDA’s work on a proof-of-concept platform for a blockchain-powered B2B payments and remittance directory.
The firm started the work earlier this year, in collaboration with Discover Financial Services.
The directory will be designed as a network of credentialed service provider sub-directories, serving as a database of payee information such as ACH payment details.
Payers can query the directory to secure payee information, while payees can use the directory for real-time information management.
The directory will utilise blockchain technolgy, open source technologies, and standardised APIs developed by Afinis Interoperability Standards.
NACHA COO Jane Larimer said: “Businesses are often consumed with onboarding vendors, obtaining and maintaining accurate payment information and ensuring the proper remittance is included for cash application.
“As a strategic initiative, NACHA works to enable solutions that will support the easy routing, posting, and application of ACH and other payments, particularly in the B2B environment. Aligning with BPDA will allow us to develop and deliver such a solution, leveraging the recognised work and expertise of BPDA.”