Neonomics adds payee verification to Nello Pay in Europe

Neonomics has integrated Movitz Payments' Verification of Payee technology into its Nello Pay service in Finland, with plans to expand to Sweden, Denmark and Norway in 2027.

The addition brings payee verification to Neonomics' Pay by Bank offering, which lets consumers make account-to-account payments directly from their bank accounts when shopping online.

Before a transaction proceeds, the system checks whether the recipient's name matches the account details linked to the payment. If a discrepancy is found, the payer can be alerted before completing the transaction.

The verification tool has been running within Nello Pay in Finland for just over a year and is already used by some of the country's largest payment platforms.

Pay by Bank plays a significant role in the Finnish eCommerce market. According to figures from Worldpay cited by the companies, it accounts for more than 27% of online payments in Finland.

Onboarding checks

The integration is intended to remove the need for businesses to build a separate connection for payee verification by embedding the function within Nello Pay.

This is particularly relevant for larger platforms managing multiple sub-merchants, where matching business names and account details can be more complex. Neonomics has added verification checks to its merchant onboarding process and introduced self-checks for merchants to reduce mismatches before a payment reaches the customer.

Once a payee has been verified, Nello Pay displays a green verified badge next to the merchant. The badge indicates that the merchant name matches the relevant account details.

The project comes as European payment providers prepare for Verification of Payee requirements aimed at reducing misdirected payments and some forms of fraud. Neonomics is preparing to extend the service across the Nordics ahead of the rules taking effect in July 2027.

Wider use

The companies are also exploring how payee verification could be used beyond customer checkout payments. Areas under consideration include payouts to customers in lending, investment, savings and marketplace businesses, where recipient checks can form part of the payment process.

Movitz Payments provides verification technology that can be integrated into payment flows and existing banking channels. Neonomics, founded in Oslo, operates an open banking and open finance platform that connects to more than 3,500 banks across 30 European markets, according to company information.

The collaboration reflects growing attention in the payments sector on account-to-account transactions and related fraud controls. Verification of Payee has become a more prominent part of payment design as regulators and providers seek to reduce errors caused by mistyped or mismatched account information.

For merchants and payment platforms, the operational challenge often begins before the first transaction. Businesses with a small number of payees can usually be onboarded with fewer issues, while platforms handling many sub-merchants may need more extensive checks to ensure names and account details align.

In Finland, where the service is already active, Neonomics has focused on placing those checks early in the process. That includes validating payee details during onboarding and allowing merchants to review information themselves before buyers encounter the payment option.

Magnus Hedenberg outlined the rationale for the partnership in comments released alongside the announcement.

"The payments landscape is evolving quickly, and security needs to evolve with it. Verification of Payee helps address a fundamental risk by checking whether the recipient's name matches the account details provided. Through our work with Neonomics, this capability is integrated into Nello Pay, helping businesses combine efficient Pay by Bank payments with an additional layer of protection. We see further opportunities to build on this foundation as verification becomes an increasingly important part of the payment experience across Europe," said Magnus Hedenberg, Chief Executive Officer and Co-Founder of Movitz Payments.

Neonomics said the rollout in Finland forms part of a broader effort to adapt its payment products as regulation and customer expectations change across Europe.

"At Neonomics, we believe staying ahead in payments means looking beyond what is required today. Regulation establishes important standards, but our focus is on continuously improving our solutions, strengthening security and anticipating what businesses and their customers will need next. Our deployment of Movitz Payments' Verification of Payee in Finland is one example of that approach. With plans to expand the partnership across the Nordics in 2027, we're continuing to advance Nello Pay so that security and a seamless payment experience go hand in hand," said Alfonso Munoz, Chief Executive Officer of Neonomics.