New Zealand’s major banks are gearing up to launch the Confirmation of Payee (CoP) service by the end of November, aiming to enhance the security of domestic payments. The New Zealand Banking Association (NZBA) announced that the service will be rolled out across the country, with full implementation expected by Easter 2025. This move is a significant step toward reducing payment errors and combating fraud, offering customers an extra layer of assurance when transferring funds.
How the Confirmation of Payee Service Works
Ever sent money and worried it might end up in the wrong account?
The new CoP service addresses this concern by:
- Allowing customers to verify that the account name matches the account number before completing a payment.
- Providing real-time notifications indicating a match, partial match, or no match between the entered details and bank records.
- Alerting customers when the payee’s bank does not yet offer the service with a “cannot check payee details” notification.
Participating banks include ANZ, ASB, BNZ, Westpac, Kiwibank, and several others, ensuring wide coverage across New Zealand.
Phased Rollout and Customer Vigilance
Roger Beaumont, NZBA chief executive, emphasized that banks are working diligently to ensure a smooth rollout.
He noted:
- Banks are adopting a phased approach due to the complexity of integrating the new service across various platforms.
- The goal is to have the CoP service available across all online personal banking channels by Easter 2025.
- Customers should remain vigilant, as the system doesn’t fully protect against scams.
“While the service adds a layer of security, it’s crucial for people to check why they’re making a payment and trust the recipient,” Beaumont advised.
Government Support and Rising Scam Concerns
Commerce and Consumer Affairs Minister Andrew Bayly expressed support for the new system.
He stated:
- The CoP service will give people greater peace of mind when making payments.
- It’s a practical step toward making transactions more secure and reducing errors or potential fraud.
Recent reports have highlighted a 27% increase in scam-related cases, comprising one in five cases handled by the Banking Ombudsman Scheme. Nicola Sladden, the Banking Ombudsman, pointed out the growing sophistication of scams as a continuing concern.
