New Confirmation Of Payee Service For Banks
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- New Zealand’s banks will launch the Confirmation of Payee service by November 2024.
- This service helps customers ensure the payee’s name matches the account number before payments.
- Full implementation across digital banking platforms is expected by Easter 2025.
New Zealand’s retail banks are set to introduce the new Confirmation of Payee service from the end of November 2024, according to the New Zealand Banking Association. The launch will take place in stages, ensuring proper testing and customer satisfaction throughout the rollout.
The Confirmation of Payee service adds an extra layer of security for customers making domestic payments between bank accounts. The new system allows payers to check if the account name matches the account number before completing a transaction. Customers will receive real-time feedback with a match, partial match, or no match notification. In cases where the payee’s bank has yet to offer the service, a ‘cannot check payee details’ alert will be shown.
This initiative aims to reduce errors and offer some reassurance when making payments, but banks are reminding customers to stay vigilant. Even with this system, it is still crucial for customers to assess the purpose of the payment and ensure the trustworthiness of the recipient to avoid potential scams.
New Zealand Banking Association chief executive Roger Beaumont stated: “Banks have been working together at pace to start making the service available before the end of the year. Due to the size and complexity of payments services the banks offer, some banks are adopting a phased approach to ensure thorough user testing and customer understanding.”
Customers might notice that the Confirmation of Payee service is not available simultaneously across all banks or platforms. Some may see the service in online banking but not yet in mobile apps, or vice versa. However, banks are aiming to have the service fully available across all digital banking channels by Easter 2025.
Participating banks include ANZ, ASB, Bank of China, BNZ, CCB, The Co-operative Bank, Heartland Bank, ICBC, Kiwibank, Rabobank, SBS Bank, TSB, and Westpac.
The phased implementation approach is similar to how Confirmation of Payee was rolled out in the United Kingdom. New Zealand’s banks are collaborating with obconnect, a global provider of Confirmation of Payee technology solutions.
Commerce and Consumer Affairs Minister Andrew Bayly expressed his support for the initiative: “This new system will give Kiwis greater peace of mind by allowing them to confirm that the name of the person they’re paying matches the bank account details before they send any money.”
The service is part of a suite of anti-scam initiatives introduced by the banking industry last September to enhance security and protect New Zealanders from financial crime.