What is the purpose of device binding in Faster Payments?

The purpose of device binding in Faster Payments is to link a user's identity to a specific device for authorized payments. This process enhances security by ensuring that only recognized and validated devices can initiate transactions for a user. By establishing this connection, financial institutions can reduce the risk of fraud, as it becomes more difficult for unauthorized parties to conduct transactions using a device that is not registered or recognized.

Device binding helps create a secure environment for online transactions by verifying that the user is accessing their account from a trusted device. This connection is crucial in scenarios where multi-factor authentication may be required or when users are making high-value transactions that necessitate additional layers of security. By requiring the use of a specific device, the system can help to prevent fraudulent transactions and protect both the user and the financial institution from potential losses.