Accurate and efficient payee verification: How the LEI number is changing global payments

10 helmikuun 2025

In times of increasing financial fraud and stricter regulatory requirements, businesses and financial institutions seek reliable methods to verify payment recipients. The Legal Entity Identifier (LEI) number is establishing itself as a powerful tool to improve the accuracy and security of payment transactions.

The challenge of payee verification

Financial institutions and businesses face significant challenges when validating payees. Traditional methods, such as manual verification of company names and account numbers, are error-prone, time-consuming and increase the risk of fraud. At the same time, stricter regulations require more precise identification of business partners.

How the LEI number improves payment accuracy

The LEI number is a unique, 20-digit identifier that provides a standardised method of identifying legal entities worldwide. By integrating LEI number registration into payment systems, organisations can ensure that payees are correctly identified before a transaction.

With LEI number registration, organisations can:

– Minimise fraud risks by verifying the identity of business partners

– Optimise the payment process and reduce manual checks

– Make international payments more efficient and secure

– Meet regulatory requirements in the US, UK and beyond

Growing acceptance of the LEI number in the financial sector

Regulatory authorities worldwide increasingly demand that companies apply for an LEI number to create more transparency in the financial industry. Banks, payment service providers and multinational corporations increasingly integrate LEI number registration into their processes to improve payment security and efficiency.

The future of the LEI number in payment transactions

With the increasing digitalisation of finance, the LEI number will play an even more critical role in ensuring accurate transactions. The combination of AI-based verification methods and blockchain technology could further drive the use of the LEI number.

How do I apply for an LEI number?

Companies wanting to secure payment processes and fulfil regulatory requirements should apply for an LEI number. Registration is simple and can be done online via accredited LEI issuers.

Conclusion

Due to increasing fraud risks and stricter regulations, the need for precise payee verification is growing. The LEI number offers a globally recognised, efficient, and secure solution for businesses looking to streamline their financial transactions.

Are you ready to make your payments more secure? Start your LEI number application today and benefit from smooth payment processing.