BNP Paribas has extended its collaboration with France-based payments services company Worldline to mitigate fraud in Single Euro Payments Area (SEPA) Direct Debit transactions.
The investment banking company has deployed Worldline’s account validation solution, which integrates open banking-based account validation with the electronic signature of SEPA mandates in Germany, Italy and France.
BNP Paribas expects to implement the solution in more countries in a few months.
BNP Paribas cash management has executed Worldline’s solution into its existing white-label product named EasyCollect.
This is expected to block the possibility of using someone else’s IBAN during the mandate signature process.
With the implementation of the account validation solution, BNP Paribas seeks to set a new standard in setting up SDD payments.
BNP Paribas payments and receivables global head Bruno Mellado said: “We were seeking an innovative solution to reduce IBAN fraud in SEPA Direct Debits.
“We found it with the new account validation functionality of Worldline’s SEPA Payment Suite which is based on the latest innovative technologies through Open Banking opportunities.
“By implementing it in our existing SEPA Mandate and Direct Debit solution EasyCollect, the risk of SDD fraud will be reduced and customer loyalty will be strengthened, which is a huge benefit for our clients and their customers.”
SEPA Direct Debit (SDD) is an automatic payment system that uses a signed mandate to pay one-time or recurring invoices in the SEPA.
Worldline said that it strengthens its SEPA payment suite and plans an innovative extension through the integration of the e-signature of SEPA mandates with account validation using open banking.
Worldline financial services global head Alessandro Baroni said: “Being one of the largest Open Banking providers, we are continuously working on innovative solutions that help our customers to grow and improve their business.
“We look forward to continuing our long-term partnership with BNP Paribas Cash Management and further build on future products and initiatives.”