Why FPAD?
Fighting fraud is a challenge that PSPs across Europe share. And yet, for a long time, they have been tackling this fight individually, without being able to fully assess beneficiary and transaction risk.
But as the number of fraud cases and the complexity of fraud attacks continued to rise, and more and more transactions are being processed as instant payments, this had to change. Recognising the need for a collective approach at a pan-European level, users of EBA CLEARING SEPA services decided to join forces on fraud combatting in 2021: their aim was to complement their individual anti-fraud tools with a network view on fraud patterns and anomalies.
Following the delivery of a blueprint for consultation with the wider user community in 2022, EBA CLEARING proceeded with the development of FPAD in 2023 with the support of a dedicated FPAD Expert Group, composed of participant representatives. The functionality was launched as an integral component of the STEP2-T and RT1 Services in March 2024.
FPAD enables STEP2 and RT1 Participants to take the fight against payment fraud to the next level by enriching their individual risk views with insights that only a network view can provide. FPAD also helps PSPs to comply with regulatory requirements with regard to fraud combatting, such as those stipulated by the Instant Payments Regulation or the draft Payment Services Regulation. With its pan-European Verification of Payee solution, FPAD will support PSPs in meeting the obligation to offer VOP services to their customers, well ahead of the 9 October 2025 deadline.