iPiD Rolls Out AI-Driven Name Matching For Secure Payments
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iPiD, a payment identity network, teamed up with Microsoft to develop an AI-powered tool for name matching in Verification of Payee (VoP). Name checking has always been key in payments to stop mistakes and fraud. Banks must be sure they are not sending money to the wrong people, including those on restricted lists.
According to the update, new rules in Europe, starting in October, will make it more complicated. Banks will need to check that the name given by the payer matches the name on the person’s bank account to stop scams. Banks will then put the matches into three categories: match, partial match, or no match.
Partial Matches Could Share Private Payee Information, Raising Privacy Concerns
Partial matches, like spelling mistakes or different ways of writing a name, can still mean the payee is correct. But this could cause problems for banks, as showing partial matches might accidentally share private payee details, which goes against privacy laws.
To solve this problem, iPiD used Microsoft’s Azure OpenAI Service to build a name-matching tool. The tool is meant to follow strict rules while being fast and accurate, reducing mistakes and keeping data safe.
Ivan Chong, iPiD’s Chief Technology Officer, stated that names are not just letters; they hold meaning. He explained that AI can help connect the exact match with the right understanding of each name. The partnership with Microsoft helped create a solution that mixes language understanding with speed and privacy.
In June last year, iPiD secured $5.3 million to help expand its Confirmation of Payee product in Europe. This funding round was directed by Monk’s Hill Ventures and had support from global fintech funds like Quona Capital and QED Investors. Other partners included Jungle Ventures, Saison Capital, 1982 Ventures, and Resolution Ventures.
The Company Plans To Focus More On Southeast Asia
iPiD was created in 2021 and is located in Singapore. The company’s main offering, Validate helps fix the growing challenge of fraud and payment failures by checking payee names and bank details.
The company serves customers worldwide, covering over 2.8 billion accounts and 6,000 banks in countries like the United States, France, the United Kingdom, India, and Vietnam. Damien Dugauquier, iPiD’s Chief Executive Officer and founder stated that the firm wants to focus more on Asia, especially Southeast Asia, where it already has a strong team.
The new funds will help iPiD quickly roll out its Verification of Payee products in Europe. This will help payment service providers follow the new rules. iPiD provides a tool that connects with many payment service providers across Europe to verify account details.
