Modulr is first non-bank to launch Confirmation of Payee
UK fintech Modulr has launched Confirmation of Payee (CoP), the first non-bank or building society in the country to do so.
Confirmation of Payee aims to reduce payment fraud
Modulr’s launch of CoP is its second product since its £10 million grant from the Capability and Innovation Fund (CIF) under the RBS Alternative Remedies package.
CoP is a service to avoid incorrect or fraudulent payments. It checks the name on an account against payment service data to ensure accuracy.
The user will be warned if the details don’t match. They can then confirm with the person or organisation they’re trying to pay.
Spearheaded by Pay.UK, CoP is in part a reaction to the proliferation of authorised push payment (APP) fraud in the UK.
APP fraud accounted for £455.8 million lost to criminals in 2019, according to UK Finance data.
“I’m delighted that we are the first non-bank or building society to offer Confirmation of Payee,” says Myles Stephenson, CEO of Modulr.
“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.”
Earlier this year the fintech landed £18.9 million in growth funding in a round led by Highland Europe.
In 2019 it became one of the few non-bank firms to gains access to Faster Payments and BACS, the two major UK payment schemes.
Related: Trio of fintechs sign up to Mastercard’s Open Banking Protect
