Finmo, a treasury and payments platform, bolsters transaction security through the implementation of Confirmation of Payee in Australia.
Finmo Introduces Confirmation of Payee (CoP) in Australia
Finmo, a Treasury and Payments platform, has officially launched Confirmation of Payee (CoP) in Australia. This integration allows Finmo to validate recipient details at the point of initiation, closing a gap in the payment lifecycle [6][7].
CoP is a safeguard mandated by Australian Payments Plus (AP+) and supported by the New Payments Platform (NPP) [1]. It functions as a name-matching tool that helps ensure that funds are sent to the correct account holder as intended by the payer.
The integration of CoP by Finmo is powered by Australian Settlements Limited (ASL), a Tier 1 NPP participant [7]. This move is seen as a shift from reactive to proactive fraud prevention by Akhil Nigam, Chief Product Officer and Co-founder of Finmo [8].
The importance of CoP lies primarily in fraud prevention. It helps protect customers against scams, such as authorized push payment fraud, by alerting them if the name on the account they are paying does not match the details they entered. This prevents funds from being fraudulently diverted to impostor accounts [2][3].
CoP also reduces data input errors. By confirming that the account details entered match the intended recipient’s name, it minimizes losses from mistakes such as typos in account numbers that might otherwise result in payments going to the wrong person or business [4].
Building customer trust is another significant benefit of CoP. As a visible security feature, CoP increases customer confidence in electronic payments, knowing that their bank is actively working to verify recipients and reduce risks associated with digital transactions [2].
Mark Tibbles, CEO of ASL, mentions that the quick delivery of CoP to Finmo users improves network safety and builds trust for businesses and consumers alike [5]. Adrian Lovney, Chief Payments and Schemes Officer of AP+, states that CoP is about giving customers greater control and confidence when making payments [1].
The rollout of CoP in the market is being led by Finmo, as mentioned by Mark Tibbles [9]. Anthony Yeoh, Chief Compliance Officer of Finmo, stated that the implementation of CoP reflects Finmo's proactive approach to compliance, risk, and fraud management [10].
In addition to protecting against fraud and errors, CoP also prevents supplier fraud, misrouted payments, and delays in reconciliation, offering businesses greater confidence and control over every transaction [8].
In conclusion, Finmo's implementation of CoP is among the first in the industry as the country begins its industry-wide rollout. This integration is not just about meeting regulatory expectations; it's about building trust into the foundation of every transaction, enhancing control and confidence for finance teams, and shifting from reactive to proactive fraud prevention [1][2][3][5][8][9][10].
References:
- AP+ announces Confirmation of Payee (CoP)
- AP+ explains Confirmation of Payee (CoP)
- NPP announces Confirmation of Payee (CoP)
- Australian Payments Council discusses CoP
- ASL supports Finmo's CoP rollout
- Finmo launches CoP in Australia
- Finmo's CoP integration powered by ASL
- Nigam on Finmo's CoP
- Tibbles on Finmo leading CoP rollout
- Yeoh on Finmo's CoP implementation
In alignment with the rollout of Confirmation of Payee (CoP) in the market, Finmo's Chief Compliance Officer, Anthony Yeoh, emphasizes that the implementation of CoP reflects Finmo's proactive approach towards compliance, risk, and fraud management. This technology-driven safeguard, mandated by Australian Payments Plus (AP+) and supported by the New Payments Platform (NPP), is a significant step for Finmo's financial business, as it not only prevents fraudulent activities but also reduces errors and improves trust in their treasury and payments platform.
