Digital payments: Navigating the landscape, addressing fraud, and charting the future with Confirmation of Payee solutions

Damien Dugauquier, Geertjan Van Bochove, Alain Raes and Jean-Julien Ilunga
Additional contact information
Damien Dugauquier: iPiD, Singapore
Geertjan Van Bochove: iPiD, The Netherlands
Alain Raes: iPiD, Belgium
Jean-Julien Ilunga: iPiD, Belgium

Journal of Payments Strategy & Systems, 2023, vol. 17, issue 4, 359-371

Abstract: This paper explores the evolving landscape of digital payments, with a specific focus on the confirmation of payee (CoP) mechanism, which has been designed to enhance the accuracy and security of payee identification. Traditional payee identification methods, reliant solely on account numbers, face increasing limitations amid the growing sophistication of both domestic and cross-border payments. The rise of instant payments and their associated fraud risks underscore the urgent need for more reliable payee identification systems. Drawing insights from domestic markets where CoP has been implemented, this paper presents the challenges, regulatory responses and the potential of a CoP scheme for Europe and globally. We argue that while a singular European solution is unlikely, interoperability will be the key to success. The paper concludes by envisioning the future of payee identification, exploring the global potential of CoP, and urging the industry to perceive CoP solutions as public goods of benefit to all stakeholders in the payments sector.

Keywords: digital payments; confirmation of payee (CoP); payee identification; instant payments; cross-border payments; fraud risks; interoperability (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/8236/download/ (application/pdf)
https://hstalks.com/article/8236/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:jpss00:y:2023:v:17:i:4:p:359-371

Access Statistics for this article

More articles in Journal of Payments Strategy & Systems from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().