Swift has been selected by Australian Payments Plus (AP+) to develop a new service aimed at enhancing the safety and security of money transfers in Australia.
This service, known as confirmation of payee, is designed to minimise the risk of erroneous payments and bolster defenses against fraud. The new measure will verify the identity of payment recipients before transactions are completed.
This is achieved by matching the name provided by the sender with the name linked to the recipient’s account, leveraging Swift’s experience with the New Payments Platform (NPP).
The service will employ standardised APIs and a centralised account matching system managed by AP+, utilising the NPP infrastructure.
Swift, recognised for its expertise in AI and data services, including its payments pre-validation for international transactions, aims to address payment fraud and misdirected funds with this initiative.
The company has already made strides in reducing friction in cross-border payments through account verification before transactions.
The development and testing of the confirmation of payee service are scheduled throughout 2024, with financial institutions expected to incorporate it into their systems starting in 2025.
Suresh Rajalingam
Suresh Rajalingam, Head of Oceania at Swift said,
“We are delighted to be working with AP+ and NPP participants to develop this important new service for Australian consumers.
Making payments safe, instant and frictionless is at the heart of everything we do at Swift, and we are committed to supporting the Australian financial industry in its fight against scammers”.
Adrian Lovney
Adrian Lovney, Chief Payment and Schemes Officer at AP+ said,
“The development of an industry wide Confirmation of Payee service will play an important role in reducing certain types of scams resulting in misdirection of a payment to the wrong account as well as avoid mistaken payments being made to incorrect account numbers.
AP+ is committed to working with the industry to better protect consumers and businesses as part of a collective effort to combat fraud and scams. Swift was the logical choice to partner with us in developing this important service, building on the strong partnership that we have had in place for a number of years.”
Featured image credit: Edited from Freepik
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- Source: https://fintechnews.sg/93411/australia/australian-payments-plus-join-forces-with-swift-to-combat-fraud/
