Finastra and ScotPayments Join Forces to Combat Payment Fraud

Finastra, a leading global provider of financial software applications, has teamed up with ScotPayments, a centralised payments platform in Scotland, to bolster the security and accuracy of payment transactions, as highlighted in Fintech Global News. The partnership aims to deploy Finastra’s Bacsactive-IP Confirmation of Payee (CoP) service, designed to mitigate payment fraud and errors, particularly in Direct Debit and Direct Credit transactions.

Finastra is renowned for its suite of financial software solutions catering to the needs of global financial institutions. Their technology portfolio, which includes payment processing and risk management solutions, adheres to international standards, ensuring compliance and efficiency in financial transactions. ScotPayments, on the other hand, focuses on facilitating the digital transformation of public services in Scotland, ensuring secure and efficient payment services for various public sector requirements.

The CoP capability introduced by Finastra through its Bacsactive-IP solution allows users to verify payment details accurately, thus mitigating fraud and reducing transaction errors. This technology holds particular significance in managing Direct Debit and Direct Credit transactions, where it significantly reduces indemnity claims and enhances transaction efficiency.

Accessible through multiple channels, including an Open API module for seamless integration, pre-transaction payment file processing, and during account setup in the Bacsactive-IP system, the CoP service underscores flexibility and adaptability to diverse user needs.

Radha Suvarna, Chief Product Officer, Payments at Finastra, emphasized the significance of CoP in streamlining payment processes, stating, “Without CoP, users face a cumbersome process requiring intervention and resolution from failed Direct Debit Instructions and Direct Credit payments. Our emphasis on identifying and rectifying issues at the initiation stage underscores our commitment to delivering seamless experiences for our clients. The solution taps into our fintech open ecosystem to manage the real-time checks with the account holding banks. This open finance approach is empowering communities and democratizing payments.”

By combining the expertise of Finastra in financial software solutions with ScotPayments’ focus on public service digital transformation, this partnership is poised to make significant strides in minimizing payment fraud and enhancing the efficiency of payment transactions in Scotland.