Swift Selected For Confirmation Of Payee Service Implementation In Australia

The Society for Worldwide Interbank Financial Telecommunication (Swift) has been chosen by Payments Plus (AP+) located in Australia to establish a Payer identity confirmation service. The purpose of this service is to decrease the risk of misdirected payments and fortify security against payment fraud.

AP+ Wants To Minimize Certain Kinds Of Scams

Swift developed and managed National Payments Platform (NPP). The firm stated that the innovative service is set to be introduced through standardized APIs, the NPP, and a Centralized account validation system overseen by AP+.

Swift’s decision capitalizes on its proficiencies in data and AI services, such as Payment Pre-validation for international payments. This is already removing international payment difficulties with upfront account validation.

The chief payment and schemes officer at AP+, Adrian Lovney stated that the creation of an industry-wide Payee Authentication service will be crucial in minimizing some kinds of scams. It will reduce those types of fraud that lead to payment redirection and also prevent payments sent to the wrong account numbers.

AP+ is dedicated to collaborating with the industry to safeguard companies and consumers as part of a joint effort to fight scams and fraud. He further emphasized that Swift was the suitable choice to collaborate with the company in creating this crucial service. Swift was selected based on the solid partnership the two firms have formed for many years.

The features of the innovative service will be gradually developed and tested throughout 2024, enabling financial organizations to incorporate it into their banking systems starting in 2025.

Swift Also Offers Services And Software Designed For Its Proprietary “SWIFTNet.”

Swift is a banking cooperative based in Belgium. The firm provides services associated with the implementation of payment and financial transactions between specified banks globally.

Its primary duty is to operate as a chief messaging system through which restricted international payments are made. It also offers services and software to financial organizations, mainly designed for use on its proprietary “SWIFTNet”.

The Swift messaging system is a feature of the worldwide payments system. The company functions as a transporter of the messages that contain the payment directions between financial organizations involved.

However, the institution does not handle accounts for financial organizations or individuals, and it also does not secure cash from third parties. The firm does not perform settlement or clearing functions. As soon as a payment is made, it must be processed via a payment system like TARGET2 in Europe.