Sionic launches Instant Bank Pay via Microsoft Marketplace

Sionic has launched its Instant Bank Pay service in the United States through Microsoft Marketplace, alongside its Fraud Detection Service.

The Atlanta-based payments company said the listing makes its products available through Microsoft's online store for cloud software and related applications. Customers can deploy the services through Microsoft systems, including Azure.

Instant Bank Pay is designed to let consumers and businesses send money directly from one bank account to another at the point of sale. The service uses the FedNow Service and the RTP network through banking partners, allowing funds to move from a payer's current account to a payee's account within seconds.

Sionic positions the service as an alternative to card payments, which often carry higher processing costs. According to the company, bank-to-bank payments through the service can cut payment costs by an average of 60% compared with credit and debit cards.

Users paying from their bank accounts can also receive rewards from participating merchants, which Sionic calls Perks.

Gaps in Rails

The launch follows a proof of concept Sionic began in late 2024 to test pay-by-bank transactions for commerce. That work highlighted several missing pieces in existing US real-time payment rails.

Among the issues the company identified were the absence of an alias directory similar to Zelle, a lack of fraud tools for point-of-sale payments, and no support for handling payment disputes. Sionic said it used Microsoft Foundry to address those shortcomings.

One example involves refunds. A customer requesting a refund can trigger an AI agent to negotiate with another agent representing the seller, with the financial institution becoming involved only if the case needs to be escalated.

The separate Fraud Detection Service is intended to protect real-time account-to-account payments made at the point of sale. Sionic said it focuses on a category of transactions that has been less developed in the US than card-based payments.

Nick Stanescu, Executive Vice President and Chief FedNow Executive, commented on the development of services linked to the Federal Reserve's instant payment network. "Organisations like Sionic are helping advance US payments with solutions that foster innovation while expanding the value and reach of the FedNow Service," said Stanescu.

"As the ecosystem continues to grow and evolve, we move toward our long-term goal of delivering reliable, efficient and widely accessible instant payments for all," he added.

Marketplace Route

By launching through Microsoft Marketplace, Sionic is also seeking easier distribution to businesses that already use Microsoft software and cloud tools. The marketplace serves as a sales channel for software vendors targeting enterprise and public-sector buyers that want procurement and deployment within an established technology platform.

Ronald Herman, Founder and CEO of Sionic, tied the launch to the company's longer effort to build lower-cost payment options in the US.

"Sixteen years ago, we set out to build the future of low-cost payments in America. Today, that future is here. Instant Bank Pay is the real-time, bank-to-bank payment service for commerce in the US," said Herman.

"Using Microsoft Foundry has helped us bring it to merchants, businesses, and financial institutions," he added.

Microsoft also framed the addition as part of the expansion of its partner marketplace. "We're pleased to welcome Sionic to Microsoft Marketplace," said Cyril Belikoff, Vice President of Microsoft Azure Product Marketing.

"Marketplace connects trusted solutions from global partners with customers worldwide, making it easy to find and deploy apps that work seamlessly with Microsoft products," Belikoff said.

Sionic said its service supports payments across online, mobile, and in-store transactions. The company added that merchants accepting account-to-account payments can receive cash deposits within seconds rather than waiting on card settlement cycles.

The move comes as US payment providers, banks, and technology groups continue to test whether real-time account-to-account payments can gain wider use in retail commerce, where cards remain dominant. Sionic said it aims to give financial institutions on either of the country's real-time bank payment rails a way to offer instant cash payments to personal and business customers.