Secure and simple instant payments

In brief:

• Instant payments are becoming increasingly popular for consumers, banks, and scammers.
• Around the world, Confirmation of Payee solutions are popping up.
• Going forward, the world of finance will need a simpler, unified solution.

Instant payments are on the rise

Instant payments have gained an unstoppable momentum. According to Capgemini’s World Payments Report 2025, over 80 countries have implemented instant payment schemes, and by 2028 they’re projected to represent 22% of the total non-cash transaction volume.

The ubiquity of mobile banking has fundamentally shifted consumer expectations, with people now demanding instant experiences across all facets of life – including financial transactions. For businesses too, instant payments offer clear advantages. These include enhanced cash flow, reduced delays, and a competitive edge in attracting and retaining customers. Financial institutions are also on board, recognizing that instant settlements improve efficiency, and align with regulatory mandates aimed at modernizing the financial ecosystem. The convergence of technological innovation, consumer demand, and business benefits underscores that instant payments are more than just a trend – they’re the inevitable next step.

…and so are instant payment scams

Unfortunately, the explosion of instant payments has also created a lucrative environment for scammers. According to ACI Worldwide’s Scamscope Fraud Report, losses to Authorized Push Payment (APP) scams are expected to grow at a compound annual growth rate (CAGR) of 11% between 2022 to 2027, reaching a total of USD $6.8 billion. In the UK, regulators reported nearly USD $505 million in losses due to APP scams in 2022, with less than 60% of affected customers receiving reimbursement. Notably, instant payments were used in 98% of these fraudulent cases.

In the US, before FedNow’s launch, 17% of U.S. consumers reported using instant payments for purchases they never received, and 43% believed friends or family had been scammed similarly. For banks and their customers, protection against fraud has become an urgent priority.

Speed with safety: Confirmation of Payee in instant payments

According to Capgemini’s World Payments report 2025, the majority of the payment executives are concerned about instant payment fraud. In fact, 80% of banking executives have already begun implementing Confirmation of Payee (CoP) checks. This caution has led many banks to prioritize receiving instant payments rather than initiating them. Interestingly, the survey found that 78% of firms are in the inception stage when it comes to instant payment services, out of which around 25% currently only receive – but do not send – instant payments. This hesitancy creates a system bottleneck, and is not a sustainable solution. In Europe, banks will be required to facilitate receiving instant payments by January 2025, and sending by October 2025. To meet those deadlines, banks must solve the question of instant payment fraud.

To combat APP fraud, robust verification mechanisms like Confirmation of Payee (CoP) have become critical. CoP, also known as Verification of Payee (VoP), IBAN check or Name check, plays a vital role in ensuring that payments are accurately directed to the intended recipient. This is done by cross-referencing the account details provided by the payer with those of the payee’s payment service provider. This system significantly mitigates the risk of funds being transferred to fraudulent accounts, as it verifies the payee’s information before any money changes hands.

This layer of verification is crucial in preventing scams where fraudsters deceive individuals into transferring money to incorrect or fraudulent accounts. By integrating CoP into payment processes, both users and financial institutions are protected from potential losses. Confirmation of Payee has emerged as a crucial verification tool, and CoP initiatives are expanding across the globe, as illustrated in Figure 1.