Financial messaging co-operative Swift has been engaged by Australian Payments Plus (AP+) to develop a confirmation of payee service aimed at mitigating the risk of misdirected payments and enhancing defenses against payment fraud.
Swift, which is responsible for Australia’s National Payments Platform (NPP), states that the new service will be implemented through the NPP, utilizing standardized APIs and a centralized account matching system managed by AP+.
This collaboration leverages Swift’s expertise in AI and data services, including Payment Pre-validation for cross-border payments, which is already reducing friction in international transactions with advance account verification.
Adrian Lovney, chief payment and schemes officer at AP+, commented, “The development of an industry-wide Confirmation of Payee service will be crucial in reducing specific types of scams that lead to payments being misdirected to the wrong accounts, as well as preventing mistaken payments to incorrect account numbers. AP+ is dedicated 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 partner for us in developing this vital service, building on our strong partnership over the years.”
The features of the new service will be gradually developed and tested throughout 2024, enabling financial institutions to integrate it into their banking channels starting in 2025.
For more details about payments, visit NextGen Nordics on 23 April 2024.