Verification Gets Embedded in Payment Systems

Account verification is moving closer to the point of payment initiation as companies like Experian and JPMorgan integrate checks directly into workflows. This shift addresses the challenge of verifying recipients when payments clear faster than ever.

The trend began with Experian partnering with International Payments Identity (iPiD) to extend account ownership verification beyond the UK, now covering SEPA markets and regions including Africa, Asia, and the Americas. Businesses can verify accounts across multiple geographies through a single solution.

Open Payments also integrated Verification of Payee into its API via Movitz Payments, allowing real-time checks within ERP systems, accounting platforms, and treasury connections.

Why This Matters

These integrations offer several key benefits:

• Reduced fraud: Real-time verification detects potential issues before money moves
• Improved efficiency: Automated checks eliminate manual review processes
• Better data quality: Ensures accurate recipient information and reduces payment failures
• Expanded compliance: Helps meet regulatory requirements for secure payments

According to recent PYMNTS Intelligence reports, 65% of firms plan to adopt or expand identity verification in the next year—signaling a broader industry shift towards proactive fraud prevention.

The embedded approach ensures verification happens at the optimal moment: when changes can still be made before funds are disbursed. This contrasts with current practices where issues are often detected after settlement, requiring costly manual interventions.