UK pensions administrator integrates HSBC’s payment pre-validation API
Ellie Duncan | News
20 Dec 2024
UK-based third-party pensions administrator Aptia has adopted HSBC’s payment pre-validation API to provide its customers with secure payment processes and to safeguard customer data.
By integrating the technology into its operations, Aptia said it is “raising the bar for security and trust” in pension fund administration.
The payment pre-validation API leverages UK’s Confirmation of Payee (CoP) to ensure that UK beneficiary account details are accurate prior to any payment being processed, reducing the risk of errors and fraud.
For Aptia’s customers, it means that payments are verified and validated before being administered, and it generates faster, error-free transactions, thereby improving the customer experience.
In addition to making use of domestic regulatory CoP schemes, such as the UK and HK scheme, HSBC’s payment pre-validation API also benefits from SWIFT’s pre-validation service for payee accounts globally.
“Implementing HSBC’s Payment Pre-Validation API is a game-changer for our industry,” said Malcolm Reynolds, president, UK and Portugal at Aptia.
“It reflects our dedication to delivering the highest level of security and reliability for our customers, giving them peace of mind as they access their pension funds.”
HSBC’s Payment Pre-Validation API is part of the bank’s suite of advanced payment solutions.
Nadya Hijazi, global head of wholesale digital channels at HSBC, added: “Our Payment Pre-Validation API leverages UK’s Confirmation of Payee (CoP) service and exemplifies our commitment to delivering innovative solutions that safeguard against errors and fraud, while enhancing the overall customer experience, ensuring greater trust and reliability for millions of beneficiaries.”
In October, Pay.UK, the not-for-profit operator of the UK’s national retail payments system, expanded CoP as part of efforts to strengthen protection for UK consumers against authorised push payment (APP) fraud and misdirected payments.
As of September 2024, CoP had processed more than 2.5 billion checks since its launch in 2020, and currently conducts in excess of 2.1 million checks daily.
