HSBC Releases Payment Validation Service to Reduce Transaction Delays
(28 March 2023 – United Arab Emirates) HSBC has introduced a Swift payment service to reduce transfer delays for UAE-based customers through the use of real-time account verification.
Europe’s largest lender is the first bank globally to add real-time account verification for UAE customers. The validation service uses innovative new technology to reduce the risk of payment delays caused by inaccurate beneficiary information. Friction in the payments system costs the industry more than $2 billion every year and affects more than 700 million transactions, according to international payments network Swift.
But much of this friction is the result of avoidable errors, such as typos and formatting errors. The new service can help to avoid these problems by validating key information before a payment is sent. This results in frictionless payments and fewer delays, according to Swift.
The validation feature uses new application programming interface (API) technology to check beneficiary account details entered in HSBCnet, the bank’s digital banking platform, ahead of payments being made, according to the lender.
“We are the first bank globally to introduce this solution that uses smart technology to verify account information in real time” commented HSBC Regional Head of Global Payments Solutions in the Middle East, North Africa and Turkey, Kyle Boag.
“Wrong beneficiary name and account details tend to be the leading cause of payment delays, but with errors removed, our corporate customers can operate more efficiently, and at pace. We’re digitising payments at scale to make banking easier and more secure for our customers.”
“In addition to account verification introduced earlier by the bank, matching and checking beneficiary names in real time has further enhanced the payment process, ensuring customers can make payments with greater confidence.”
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