BNP Paribas tackles fraud in SEPA Direct Debit (SDD) transactions with Worldline

Rick Steves

“By implementing it in our existing SEPA Mandate and Direct Debit solution EasyCollect, the risk of SDD fraud will be reduced and customer loyalty will be strengthened, which is a huge benefit for our clients and their customers.”

BNP Paribas Cash Management has selected Worldline to reduce fraudulent transactions in SEPA Direct Debit (SDD), an automated payment method used to pay one-off or recurring invoices in the Single Euro Payments Area via a signed mandate.

The bank deployed Worldline’s solution, which combines the electronic signature of SEPA mandates with Open Banking-based account validation, in Germany, Italy, and France, with additional countries to follow in a few months.

60%+ of defrauded direct debits during signature process

According to the announcement, BNP Paribas Cash Management is the first to implement Worldline’s Account Validation solution into its existing white-label product named EasyCollect.

In doing so, BNP Paribas secures a first-mover advantage and is about to set a new standard in setting up SEPA Direct Debit payments.

The move is designed to prevent the risk of a fraudulent use of someone else’s IBAN during the mandate signature process, a pattern that was responsible for over 60% of defrauded direct debits in recent years.

By combining the e-signature of SEPA mandates with account validation using Open Banking, Worldline enhances its SEPA Payment Suite and proposes an innovative extension, using Strong Customer Authentication and providing advanced security that eliminates the risk of IBAN misuse during the mandate signature process.

Not only will companies and merchants benefit from this solution as it is a secure and low-risk payment method, but the consumer will also benefit from a better user experience.

“Risk of SDD fraud will be reduced and customer loyalty will be strengthened”

Bruno Mellado, Global Head of Payments and Receivables at BNP Paribas: “We were seeking an innovative solution to reduce IBAN fraud in SEPA Direct Debits. We found it with the new account validation functionality of Worldline’s SEPA Payment Suite which is based on the latest innovative technologies through Open Banking opportunities. By implementing it in our existing SEPA Mandate and Direct Debit solution EasyCollect, the risk of SDD fraud will be reduced and customer loyalty will be strengthened, which is a huge benefit for our clients and their customers”.

Alessandro Baroni, Head of Financial Services at Worldline: ‘’Being one of the largest Open Banking providers, we are continuously working on innovative solutions that help our customers to grow and improve their business. We look forward to continuing our long-term partnership with BNP Paribas Cash Management and further build on future products and initiatives’’.

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