What is the role of authentication in Faster Payments?

The role of authentication in Faster Payments is fundamentally to verify the identity of a user before payment initiation. This ensures that only authorized individuals can initiate transactions, which is crucial for preventing fraud and maintaining the security of financial transactions. By confirming the user's identity through various means—such as passwords, biometric verification, or multi-factor authentication—financial institutions can protect both the sender and the receiver from unauthorized access and potential financial losses.

This verification process is essential in a landscape where speed in payment processing is growing, as it adds a layer of security that upholds the integrity of the system. Ensuring that the individual initiating the payment is indeed who they claim to be supports the overall trust in electronic payment systems and fosters a safe environment for transactions.