[The Netherlands, Brussels, February 2025] – iPiD is proud to announce an advancement in payee verification name matching with the launch of iPiD Match. This achievement, made possible through our collaboration with Microsoft, uses the power of Microsoft Azure OpenAI Service, part of Azure AI Foundry, to address critical challenges in name matching and comply with Europe’s evolving Verification of Payee (VoP) requirements, set to take effect in October 2025. 

Name matching has long been a cornerstone of payment security and regulatory compliance. Financial institutions are tasked with ensuring accuracy to prevent processing payments for sanctioned entities. The new VoP regulations introduce additional complexity, requiring financial institutions to verify that the name provided by the payer matches the name registered to the recipient’s bank account to combat payment scams effectively. 

Addressing the VoP Challenge 

The VoP regulation requires payee’s financial institutions to classify name matches into three categories before a payment is processed: 

While positive matches are relatively straightforward, differentiating between partial and no matches presents significant operational and legal implications. 

Partial matches involve minor discrepancies—like spelling errors or alternate naming conventions—that may still suggest the correct payee. While providing partial matches improves customer experience, it raises GDPR concerns when inadvertently revealing unintended payee information. Drawing the line between partial matches and no matches is therefore both operationally and legally challenging, demanding precise algorithmic solutions. 

Algorithms that are too strict risk red flagging legitimate payees, whereas overly lenient algorithms could breach GDPR by exposing payee names unnecessarily. The stakes are particularly high due to the variability in names—from differences in spelling, nicknames, and middle names to business acronyms, transliterations, and different alphabets. 

A Cutting-Edge Solution 

To address these challenges, iPiD developed iPiD Match, a next-generation name matching algorithm, in collaboration with Microsoft and powered by Azure OpenAI Service. Built using PostgreSQL and other advanced tools, iPiD Match is specifically designed to meet the complex requirements of VoP. This proprietary solution balances precision and compliance with speed and efficiency, reducing false negatives while adhering to strict data privacy requirements. 

"Names are more than just letters; they carry identity and meaning. With AI, we can bridge the gap between technical precision and contextual nuance," said Ivan Chong, Chief Technology Officer of iPiD. "Thanks to our collaboration with Microsoft, we’ve created a solution that combines the linguistic depth of large language models with essential requirements like speed, resource efficiency, explainability, and adaptability." 

"At Microsoft, we are pleased to see fintechs using the power of Microsoft Azure AI Foundry to tackle real-world challenges such as fighting fraud and protecting data privacy," said Christian Sarafidis, General Manager of EMEA Financial Services, Microsoft. "This collaboration with iPiD showcases the potential of innovative collaborations in advancing the financial ecosystem." 

Driving Industry Impact 

This development marks a significant milestone for the financial industry, providing a robust solution to improve payee verification, enhance security, and streamline compliance processes. With iPiD Match, financial institutions and payment service providers (PSPs) can prevent payment scams and enhance efficiency in meeting VoP requirements. By leveraging this proprietary algorithm, iPiD aims to help PSPs across the EU with: 

A Call to Action 

The new name matching solution is poised to greatly help financial institutions in their journey towards VoP Compliance. Financial institutions and industry stakeholders are invited to explore this innovative offering and learn how it can drive better outcomes for businesses and customers alike. 

To learn more about this groundbreaking solution, visit www.ipid.tech or contact Adriena Lim, Growth & Brand Director at [email protected].