JPMorgan Partners with CBA to Combat Fraud in International Payments using Blockchain Technology

JPMorgan has partnered with the Commonwealth Bank of Australia to integrate its NameCheck technology into JPMorgan’s blockchain network Liink. This collaboration aims to validate bank account details used in international payments to Australia, reducing payment returns and minimizing fraudulent activities. The technology was introduced to CBA’s retail and business customers in 2023 and is being gradually rolled out to various payment types and scenarios.

JPMorgan’s Liink, established in 2017, is an information sharing network based on a private, permissioned blockchain. With over 75 global participants currently active on the network and over 60 million messages processed so far, Liink has been seeking international banking partners in key regions like Apac, Latam, and NAMR. Confirm allows institutions to validate account information before making a payment, reducing payment returns and minimizing fraudulent activities.

The partnership with CBA is seen as progress towards reducing the impact of scams and enhancing trust in payment processes. Mike Vacy-Lyle, Commonwealth Bank’s group executive for business banking, emphasizes the importance of a collective approach across institutions, sectors, and jurisdictions to address these issues. “This collaboration is a significant step towards building trust in the payment ecosystem,” he says.

To expand its coverage further, JPMorgan is looking to recruit founding member banks across regions like Apac, Latam, and NAMR. The goal is to have a network that spans over 35,000 banks and covers more than two billion accounts. This collaboration will ultimately help combat global scams and erroneous payments while promoting greater transparency and accuracy in the financial industry.

In conclusion, this partnership between CBA and JPMorgan represents an important milestone in combating fraudulent activities in international payments while enhancing trust in the payment ecosystem. As we move towards greater digitalization of financial transactions, it is crucial that we have robust systems in place to ensure accuracy and security of bank account details used for international payments.