Financial institutions are increasingly integrating payee verification tools directly into payment workflows, including APIs and treasury platforms. This shift aims to reduce fraud and misdirected payments by confirming account ownership before transactions are executed.
In October 2025, Europe implemented the Instant Payments Regulation, requiring payment service providers to offer payee verification for euro credit transfers. This system provides feedback on account matches before a payment is initiated.
The Federal Reserve introduced a Payee Name Verification tool in January and plans to integrate it into the FedNow service via an API. These developments support broader efforts to standardize verification across different payment rails.
The startup IPID recently secured $16 million in a Series A funding round led by Foundation Capital, with participation from Citi and HSBC. The company supports verification networks across more than 50 countries and plans to expand its U.S. presence.
Industry players are actively adopting these technologies. In August, Open Payments integrated verification into its API, while MassPay launched its own validation tool. Additionally, Diesta integrated JPMorgan’s Kinexys Liink Confirm for insurance sector workflows.
Data indicates the effectiveness of these measures. Firms using real-time account ownership verification detect suspected fraud significantly faster, with 60% identifying issues within minutes compared to 39% of firms without such tools.
