Streamlining Secure Cross-Border Transactions

As businesses increasingly operate globally, the need for secure and efficient cross-border payment systems has become critical. A growing number of companies are integrating account verification into their payment workflows to combat fraud and ensure funds reach the intended recipients.

Account verification checks match recipient information with destination accounts before payments are processed, creating an extra layer of security that extends across markets. This approach helps prevent errors, reduces fraud risk, and improves overall transaction efficiency.

Industry Adoption Accelerates

Several recent developments demonstrate this trend:

• IPID secured $16 million in Series A funding to expand its account verification network, which already supports financial institutions in over 50 countries
• Open Payments integrated Verification of Payee into its API for ERP and accounting systems
• MassPay launched MassPay Validate to check account status before payments originate
• Diesta partnered with JPMorgan’s Kinexys Liink Confirm for insurance brokers to verify beneficiary details

These initiatives reflect a broader industry shift toward incorporating verification closer to the payment initiation point.

Regulatory Momentum in Europe and US

Europe has taken a leading role with its Instant Payments Regulation, which requires Verification of Payee for euro credit transfers starting in October 2025. This mandates that payment service providers offer recipient matching services before payments are released.

The United States is also advancing in this area. The Federal Reserve already offers Payee Name Verification and plans to make it available through an API for FedNow® users, enabling real-time fraud detection and prevention.

Benefits of Real-Time Verification

According to PYMNTS Intelligence reports:

• 60% of firms using real-time account ownership verification detected suspected fraud instantly or within minutes
• These firms were more than twice as likely to detect fraud before funds moved (21% vs. 10%)
• Real-time verification helps combat unauthorized party schemes, which accounted for 71% of fraud incidents in 2025

As payment systems become increasingly interconnected across borders, account verification networks will play a vital role in ensuring transaction security and building trust in digital payments.