Financial institutions in Europe and the UK are adapting to new regulations aimed at enhancing payment security. ACI Worldwide, a payments technology provider, has forged an alliance with Banfico, a fintech firm specializing in account verification, to assist banks and payment service providers (PSPs) in meeting regulatory requirements for Confirmation of Payee (CoP) and Verification of Payee (VOP) services. These services are designed to reduce fraud risks by ensuring that account details match the intended recipient before transactions are processed. As new financial regulations take effect, industry stakeholders are implementing measures to improve the accuracy and security of digital payments.
In previous collaborations, ACI Worldwide has pursued similar security efforts, integrating fraud prevention solutions into digital payment frameworks. Past initiatives have focused on real-time payments and fraud detection technologies. Banfico has also worked with financial institutions to develop compliance solutions, particularly around open banking and secure account verification. The latest partnership builds on these experiences, extending security measures to align with recent European and UK payment regulations.
How Will ACI and Banfico Improve Payment Security?
The integration of ACI Worldwide’s payment security framework with Banfico’s verification services will enable financial institutions to verify account details before processing transactions. With the European Instant Payment Regulation making VOP a mandatory requirement for all PSPs by October, these services aim to curb fraud risks, including authorized push payment (APP) scams. In the UK, CoP is already in place to protect consumers from misdirected payments and fraudulent transactions.
What Role Does Regulatory Compliance Play in This Partnership?
Compliance with financial regulations is a central factor in this collaboration. The European Instant Payment Regulation and UK’s Faster Payments framework both emphasize security through account verification. By integrating with Banfico, which is a Pay.UK-certified CoP aggregator, ACI Worldwide can offer CoP services to new and existing customers using Faster Payments. Financial institutions must adhere to these regulations or risk penalties, making compliance a priority.
“Account verification services are a critical component of modern payment systems. VOP is a key requirement as part of Europe’s Instant Payment Regulation. Similarly, in the UK, most major banks and PSPs have implemented CoP to enhance payment security and reduce APP fraud,” said Nick Craig, head of ACI’s European operations.
Fraud prevention remains a key challenge for the payments industry as companies strive to balance security with user convenience. Industry experts highlight the difficulties of providing a seamless customer experience while maintaining robust fraud detection systems. Financial institutions are adopting technologies that introduce necessary security layers without causing excessive friction for legitimate users.
As digital transactions increase, fraud risks continue to evolve. Technologies such as CoP and VOP help mitigate these risks by ensuring payment details are correct before transactions proceed. However, fraudsters frequently adapt to new security measures, requiring financial institutions to continuously update their fraud detection systems. The collaboration between ACI Worldwide and Banfico reflects a broader industry trend where companies invest in security solutions to comply with regulations while protecting consumers from financial fraud.
