Neonomics and Movitz Payments strengthen Pay by Bank security

This partnership signals a major security upgrade for 'Pay by Bank' methods, which are becoming a popular alternative to credit cards and traditional consumer financing. By integrating Verification of Payee (VoP) technology, the system now automatically confirms that the name on a bank account matches the person initiating the payment. For retailers, this is a significant step forward in reducing fraud and 'friendly fraud' chargebacks during the checkout process. While this specific rollout is currently focused on the Nordic markets (Finland, Sweden, Denmark, and Norway), the underlying technology reflects a global shift toward Open Banking. For your business, this means lower transaction fees compared to credit cards and faster settlement times. The increased security makes customers more comfortable using direct bank transfers for high-ticket items, such as furniture or home improvements, where they might otherwise hit credit card limits. As these security protocols become standard, expect to see more customers opting for direct bank-to-merchant payments at the point of sale.

Source: Finextra — Lending

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