Worldline and BNP Paribas have expanded their relationship to fight IBAN fraud in SEPA Direct Debits (SDD).
The French payments services provider Worldline and the French banking group BNP Paribas have expanded their collaboration in order to reduce International Bank Account Number (IBAN) fraud in Single Euro Payments Area (SEPA) Direct Debits (SDD) transactions.
SSD automatically pays SEPA invoices by a signed mandate. According to a Bank of France study, over 60% of recent direct debit frauds involved false IBAN use during the SDD mandate signature step.
BNP Paribas Cash Management announced that it has included Worldline’s account validation solution into EasyCollect, the banking group’s current white-label offering for SSD management, to address the issue.
BNP Paribas Establishes New Paradigm
The largest French bank claims that by integrating Worldline’s technology, it is ready to establish a new benchmark for the handling of SDD payments.
Worldline enhanced its SEPA Payment Suite and proposed an innovative extension, using Strong Customer Authentication and providing advanced security that completely eliminated the risk of IBAN misuse during the mandate signature process, according to a statement from the company. “By combining the e-signature of SEPA mandates with account validation using Open Banking, Worldline enhanced its SEPA Payment Suite and proposed an innovative extension,” the company said.
Worldline added that the new integrated solution offers “a better user experience” to customers and offers enterprises and merchants a secure, low-risk payment mechanism.
Worldline Combines Its Payments Operations
Founded in 1974, Worldline has a long history in the payments industry. According to the firm, it produced €4.4 billion in sales last year and supports the expansion of over a million businesses globally.
According to Finance Magnates, the French payments service provider’s revenue increased by 8.3% to €1.19 billion during the last quarter of 2022. During the quarter, the provider’s revenue from merchant services increased by 10.3%.
Worldline is combining its operations and has strong financial position. Worldine was chosen in January by ING Bank N.V., a Dutch international bank, to manage the processing and issuance of its credit and debit cards in Belgium, the Netherlands, Luxembourg, and Germany.
Additionally, in November of last year, Worldline and Italy’s Banco Desio reached an agreement to purchase the merchant acquiring operations for $100 million. The business claimed that the action is consistent with its plan to broaden its merchant services throughout southern Europe, with an emphasis on Italy.