By Oliver Smith on Wednesday 2 September 2020
The second project to have been funded by the payment provider's £10m BCR grant.
Payments provider Modulr has launched Confirmation of Payee for its clients, becoming the first non-bank to do so.
Confirmation of Payee is a fraud prevention system led by Pay.UK which checks the name of a bank transfer recipient matches those details held by the bank.
If a consumer finds themselves sending funds to a name or company that doesn’t match the account, often part of what’s called authorised push payment fraud, this is flagged.
“We’re committed to delivering the very latest innovation in payments to our customers, and I’m delighted that we are the first non-bank or building society to offer Confirmation of Payee,” said Myles Stephenson, CEO and founder of Modulr.
“Thousands of consumers and businesses fall victim to social engineering scams every year in the UK. Modulr is always looking for ways to help our customers keep their money safe.”
While banks have been mandated to introduce Confirmation of Payee, with digital banks Monzo and Starling both having done so, the introduction for non-banks is only optional for now.
“We are delighted to see Confirmation of Payee now making a difference in the UK payments environment,” said Brian Cunnington, SME for the Confirmation of Payee project team at Pay.UK.
“The new service offers protection for consumers through the account name checking service, reducing errors and fraudulent misdirection of funds.”