Beneficiary confirmation
When a transfer is made between national accounts at a Multibanco ATM, the name of the person or entity that will receive the money appears, allowing the transferee to confirm in advance that they are sending money to the right beneficiary before giving the final transfer order.
It is this functionality that Banco de Portugal is now extending to all transfers in all channels provided by banks, such as 'homebanking' or the banks' 'app' (application) that customers have on their mobile phones.
This functionality will also be present on direct debits to confirm that the debtor is the holder of the account to be debited.
In the 2023 Payment Systems Report, released today, Banco de Portugal considers that this service will reduce the risk of fraud, by minimising the possibility of sending money to the wrong recipients.
Transfers with phone number only
From June 24th (through implementation by banks will be gradual) it will be possible to make transfers between national bank accounts (normal or immediate transfers) just by entering the beneficiary's mobile phone number.
In other words, what already happens on the MBWay network will happen in all transfers between national accounts, whether made through home banking, through the bank's app or over the counter.
If the beneficiary is a company, the person making the transfer may only indicate the NIPC (company tax identification number).
In this system, now called 'proxy lookup', users have to associate their mobile phone number (it can be a foreign mobile number) with an account.
If someone transfers money to my bank account using my phone number will I get a call? What if I don't answer it?
By André from Alentejo on 20 May 2024, 21:11
I am nearly 80. I am already having trouble making transfers. Having read my bank's statement and this article I am even more confused.
Please can there be a very simple explanation on a step-by-step instruction in English suitable for someone who is having great difficulty keeping up with all this new technology. Thank you. Ian Findley
By ian richard findley from Algarve on 21 May 2024, 10:08
No André, it means that someone can send you money, without knowing your IBAN. To send money, knowing the receiver's phone number would be enough. You just have "connect" your phone number to the specific account.
By JJussi from Other on 21 May 2024, 10:32
Will be interested to see how it works.
In Canada if someone sends money to your phone/e-mail address you get an SMS that prompts you to logib to your bank acct and accept the transfer. If you don't in 30 days, the money reverts to sender.
Spam can be an issue.
By Shawn from Other on 22 May 2024, 12:29
Ian Richard Findley: I suggest you make an appointment with your account manager at your local bank. You always have one, per default, the name can be easily found in the app. If not, just go there and make an appointment, I usually do so for Wed or Thu after lunch, that seems to be the most quiet time so they will have more time and patience. I would prepare the list of questions I may have beforehand, when you are there you might forget what you wanted to ask. And then, let them explain, most of people at banks speak good English anyway... And, then, my recommendation is to repeat this process at least once until you are sure you know what you are doing! In my experience, although I don´t have a lot of money at the bank, they have always been very nice and patient with explanations, sometimes they even called several days afterwards to see whether I needed something more. All in all, don´t be shy, be proactive and go there, it is a nice walk (probably) anyway, particularly when combined with a nice lunch or tea afterwards. So, persist and learn! Age is not a problem with this stuff, NOBODY of ANY age knows these things beforehand, as they are new for us all...
By Aleks from Algarve on 23 May 2024, 12:19
The Portuguese banking transfer system is one of the most complex and user unfriendly systems I have ever experienced. Even the bank statements are extremely hard to decipher. Why don't they have a closer look at how it is done in other European banks and countries. Why always develop your own system when there are plenty of proven, straightforward, safe and userfriendly systems out there.
By H from Algarve on 24 May 2024, 07:10