Real-time cross-border payments infrastructure company Nium has introduced a real-time bank account verification solution, dubbed Nium Verify, to eliminate misdirected global payments.
Designed to allow instant verification of beneficiary bank account details, Nium Verify is available across 50 markets for both businesses and individuals.
The solution aims to reduce errors, streamline operations, and mitigate compliance risks, increasing the confidence in the finality of real-time payments.
According to Nium, failed payments were estimated to have cost the global economy $118.5bn in 2020. This underscores the need for accurate and secure payment processing, said the firm.
Nium Verify addresses the challenges of conventional account verification methods by connecting directly with local clearing systems and major banks in each market.
The solution also offers instant confirmation of beneficiary account details before initiating transactions. Additionally, Nium Verify can support onboarding for marketplaces by allowing verification without immediate payments.
Nium chief payments officer Alex Johnson said: “Nium Verify comes at a critical time as businesses expand internationally and need to pay multiple beneficiaries across the globe.
“With Nium Verify, we’re providing a solution that not only enhances operational efficiency, but also strengthens security and compliance for cross-border transactions. This helps businesses verify account details with confidence, eliminating costly misdirected payment, preventing fraud and improving customer experience.”
Nium Verify helps reduce payment failures by ensuring real-time verification of account details, thus minimising the delays often caused by errors.
It also assists in fraud prevention and compliance by verifying that account details align with the registered account holder. This enables businesses to meet regulatory requirements in regions such as the UK and the European Union (EU).
Besides, the solution improves operational efficiency by automating the verification process through a single application programming interface (API).
Furthermore, Nium Verify accelerates settlements, cutting settlement delays by up to five to seven days compared to traditional verification processes. This allows for quicker, more predictable payments.
Nium Verify’s launch follows Nium’s recent rollout of capabilities that allow financial institutions to leverage Swift’s capabilities, connecting them to Nium’s network.
