Through the partnership, financial institutions will have access to Pidgin’s faster payments platform and Effectiv’s fraud mitigation tools. These will help financial institutions complete transactions faster, as well as detect and flag threats in real time.

Pidgin is a provider of payment services, eliminating the need for companies to use a holding account by a third-party provider or a virtual wallet.

Ravi Sandepudi, co-founder and CEO of Effectiv, welcomed the new partnership between his company and Pidgin.

“As adoption of faster payments grows, many financial institutions are concerned about the implications for fraud prevention and risk management”, Sandepudi said.

“Our team ensures financial institutions, regardless of their size, stay secure as fraud continues to evolve and faster payments become more widespread. By partnering with Pidgin, we can help more banks and credit unions across the country get ahead of risk and protect their account holders while offering the latest payment options that today’s consumers and businesses want”, he continued.

Real-time payments are expanding rapidly

Pidgin is a real-time payments platform, enabling financial institutions, business owners and consumers to pay faster and at lower costs.

Since its launch in 2022, the company has gained significant traction with financial institutions across the US. Last year, Pidgin was selected to provide a demo at FinovateFall in New York City.

Real-time payments have recently gained traction, with many experts seeing them as a possible solution for cross-border trading. They increase capital flows and help businesses complete deals faster.

A Rapyd report published this month showed 32% of companies worried about currency fluctuations, while 30% cited import/export challenges as a significant concern when they transfer money.

Pidgin’s success offers a glimpse into the world of fintechs “doing everything in their power to reach new markets and open up new revenue streams”, according to Gardar Stefansson, CEO of Rapyd Europe.

“The bigger their operations get, the more these costs rise. It’s an unacceptable situation at a time when so many advanced economies are struggling to grow”, Stefansson explained.

However, GlobalData analysts report that the expansion of real-time payment services remains limited due to the dominance of cards in the market.