UK paytech company Modulr has become the first non-bank to offer confirmation of payee, a fraud prevention initiative designed to ensure payments reach the correct recipient.
Spearheaded by payments authority Pay.UK, confirmation of payee protects customers from malicious redirect payment fraud, when a person is tricked into approving a payment to a fraudster’s account.
Through confirmation of payee, the second Modulr product launch to come out of its £10 million grant from the Capability and Innovation Fund under the RBS Alternative Remedies package, customers will have greater assurance their payments are going to the right recipient when they’re paying a business or personal account.
Confirmation of payee calls on Modulr’s API and automatically checks that the recipient’s name and account details match the information held by their payment service provider.
Myles Stephenson, chief executive of Modulr, said: “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. 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.”
Brian Cunnington of Pay.UK added: “We are delighted to see confirmation of payee now making a difference in the UK payments environment. The new service offers protection for consumers through the account name checking service, reducing errors and fraudulent misdirection of funds.”
Modulr is payments-as-a-service API platform for digital businesses. Using Modulr, they can automate payment flows, embed payments into their platforms, and build new products and services.
The paytech company was authorised as an e-money institution in the UK in 2016 and became a principal issuing partner of Visa earlier this year.