Finastra offers Confirmation-of-Payee service to ScotPayments

By Gloria Methri

Finastra has launched its Bacsactive-IP Confirmation of Payee (CoP) service with ScotPayments, a centralized payments platform that supports the digital transformation of public services in Scotland.

The Confirmation of Payee (CoP) capability enables users to verify that they are sending payments to or collecting money from the right account holder. This gives users confidence in the process when making payments, avoids accidental misdirection of funds, and reduces the risk of fraud.

By catching errors at the signup stage, users can swiftly address issues while engaging with customers on the phone or website, ensuring a seamless experience.

“With Confirmation of Payee, our users have peace of mind, knowing that errors are automatically detected so that they can be corrected upfront, streamlining transactions and reducing the risk of payment errors,” said Sharon Smith, Product Owner at ScotPayments. “CoP is invaluable, not only in making processes more efficient but also in ensuring that payments make it to the recipients as quickly and efficiently as possible. These payments are time sensitive and critical – these could range from grants or benefits, staff salaries or supplier payments.”

CoP is available through the Bacsactive-IP solution in the UK via three distinct channels: an Open API module integrated into client systems and websites when processing payment files prior to sending to Bacs, and when adding and editing accounts entered in Bacsactive-IP. ScotPayments has used the Open API module to seamlessly add CoP capabilities to its service, allowing automated real-time checking and error resolution.

“Without CoP, users face a cumbersome process requiring intervention and resolution from failed Direct Debit Instructions and Direct Credit payments,” said Radha Suvarna, Chief Product Officer of Payments at Finastra. “Our emphasis on identifying and rectifying issues at the initiation stage underscores our commitment to delivering seamless experiences for our clients. The solution taps into our FinTech open ecosystem to manage real-time checks with the account-holding banks. This open finance approach is empowering communities and democratizing payments.”