BNP Paribas deploys Worldline solution to tackle SEPA direct debit fraud
BNP Paribas has extended its partnership with paytech Worldline as the firm looks to tackle fraud in SEPA direct debit transactions.
BNP Paribas extends Worldline partnership
SEPA direct debit (SDD) is an automated payment method that is used in the Single Euro Payments Area to pay one-off or recurring invoices through a signed mandate.
BNP Paribas Cash Management will deploy Worldline’s Account Validation solution within its white-label EasyCollect direct debit product to offer a “secure and low risk payment method” and an improved user experience for its customers.
Worldline’s offering combines the electronic signature of SEPA mandates with open banking-based account validation to “eliminate” the risk of IBAN misuse during the mandate signature process.
The fraudulent use of someone else’s IBAN during the mandate signature stage has accounted for over 60% of defrauded direct debits in recent years, according to a Banque De France report.
Bruno Mellado, global head of payments and receivables at BNP Paribas, says by implementing Worldline’s tech in its existing SEPA mandate and EasyCollect offering, “the risk of SDD fraud will be reduced and customer loyalty will be strengthened”.
BNP Paribas has so far deployed the solution in Germany, Italy and France, with plans to roll it out to additional countries in the following months.
