Citi and HSBC back IPID Series A

Major banks Citi and HSBC are investing heavily in 'payment intelligence' to combat the rising tide of fraud in digital transactions. IPID, a startup that has just secured $16 million in funding, provides tools that verify the identity of a payee before money changes hands. For retailers and operators, this signifies a major shift in how lenders and payment processors will handle your transactions in the near future. As consumer financing and BNPL continue to grow, the risk of misdirected payments or identity fraud grows with it. This technology aims to make global payments safer by ensuring that when a lender sends funds to a merchant—or when a consumer makes a payment—the recipient is exactly who they claim to be. For your business, this likely means more robust security protocols integrated into your point-of-sale financing tools. While extra security can sometimes mean more friction, the goal here is to automate verification so that legitimate transactions clear faster while fraudulent ones are blocked instantly. Expect your financing partners to lean into these 'confirmation of payee' technologies to lower their risk, which ultimately helps keep the cost of offering credit lower for your customers.

Source: Finextra

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