diff --git a/obp-api/src/main/scala/code/api/util/NewStyle.scala b/obp-api/src/main/scala/code/api/util/NewStyle.scala
index 41797fa888..24c9bc80e2 100644
--- a/obp-api/src/main/scala/code/api/util/NewStyle.scala
+++ b/obp-api/src/main/scala/code/api/util/NewStyle.scala
@@ -450,6 +450,13 @@ object NewStyle extends MdcLoggable{
         (unboxFullOrFail(i._1, callContext, s"$BankAccountNotFound Current BankId is $bankId and Current AccountNumber is $accountNumber", 404), i._2)
       }
 
+    // This method handles external bank accounts that may not exist in our database.
+    // If the account is not found, we create an in-memory account using counterparty information for payment processing.
+    def getOtherBankAccountByNumber(bankId : Option[BankId], accountNumber : String, counterparty: Option[CounterpartyTrait], callContext: Option[CallContext]) : OBPReturnType[(BankAccount)] = {
+      Connector.connector.vend.getOtherBankAccountByNumber(bankId, accountNumber, counterparty, callContext) } map { i =>
+        (unboxFullOrFail(i._1, callContext, s"$BankAccountNotFound Current BankId is $bankId and Current AccountNumber is $accountNumber", 404), i._2)
+      }
+
     def getBankSettlementAccounts(bankId: BankId, callContext: Option[CallContext]): OBPReturnType[List[BankAccount]] = {
       Connector.connector.vend.getBankSettlementAccounts(bankId: BankId, callContext: Option[CallContext]) map { i =>
         (unboxFullOrFail(i._1, callContext,s"$BankNotFound Current BankId is $bankId", 404 ), i._2)
diff --git a/obp-api/src/main/scala/code/bankconnectors/Connector.scala b/obp-api/src/main/scala/code/bankconnectors/Connector.scala
index 2d3a8ae3e7..131e8ed6eb 100644
--- a/obp-api/src/main/scala/code/bankconnectors/Connector.scala
+++ b/obp-api/src/main/scala/code/bankconnectors/Connector.scala
@@ -530,6 +530,11 @@ trait Connector extends MdcLoggable {
   
   def getBankAccountByNumber(bankId : Option[BankId], accountNumber : String, callContext: Option[CallContext]) : OBPReturnType[Box[(BankAccount)]] = Future {(Failure(setUnimplementedError(nameOf(getBankAccountByNumber _))), callContext)}
 
+  // This method handles external bank accounts that may not exist in our database.
+  // If the account is not found, we create an in-memory account using counterparty information for payment processing.
+  //TODO understand more about this method.
+  def getOtherBankAccountByNumber(bankId : Option[BankId], accountNumber : String, counterparty: Option[CounterpartyTrait], callContext: Option[CallContext]) : OBPReturnType[Box[(BankAccount)]] = Future {(Failure(setUnimplementedError(nameOf(getOtherBankAccountByNumber _))), callContext)}
+
   def getBankAccountByRoutings(bankAccountRoutings: BankAccountRoutings, callContext: Option[CallContext]) : OBPReturnType[Box[(BankAccount)]] = Future {(Failure(setUnimplementedError(nameOf(getBankAccountByRoutings _))), callContext)}
   
   def getCounterpartyFromTransaction(bankId: BankId, accountId: AccountId, counterpartyId: String, callContext: Option[CallContext]): OBPReturnType[Box[Counterparty]] = Future {(Failure(setUnimplementedError(nameOf(checkBankAccountExists _))), callContext)}
diff --git a/obp-api/src/main/scala/code/bankconnectors/LocalMappedConnector.scala b/obp-api/src/main/scala/code/bankconnectors/LocalMappedConnector.scala
index 8c112f5eec..0bfe96e38c 100644
--- a/obp-api/src/main/scala/code/bankconnectors/LocalMappedConnector.scala
+++ b/obp-api/src/main/scala/code/bankconnectors/LocalMappedConnector.scala
@@ -1026,15 +1026,76 @@ object LocalMappedConnector extends Connector with MdcLoggable {
         else
           s"$AccountNumberNotUniqueError, current BankId is ${bankId.head.value}, AccountNumber is $accountNumber"
           
-      if(bankAccounts.length > 1){
+      if(bankAccounts.length > 1){ // If the account number is not unique, return the error message
         (Failure(errorMessage), callContext)
-      }else if (bankAccounts.length == 1){
+      }else if (bankAccounts.length == 1){  // If the account number is unique, return the account
         (Full(bankAccounts.head), callContext)
-      }else{
-        (Failure(errorMessage), callContext)
+      }else{ // If the account number is not found, return the error message
+        (Failure(s"$InvalidAccountNumber, current AccountNumber is $accountNumber"), callContext)
       }
     }
 
+  // This method handles external bank accounts that may not exist in our database.
+  // If the account is not found, we create an in-memory account using counterparty information for payment processing.
+  override def getOtherBankAccountByNumber(bankId : Option[BankId], accountNumber : String, counterparty: Option[CounterpartyTrait], callContext: Option[CallContext]) : OBPReturnType[Box[(BankAccount)]] = {
+    
+    for {
+      (existingAccountBox, updatedCallContext) <- getBankAccountByNumber(bankId, accountNumber, callContext)
+      (finalAccountBox, finalCallContext) <- existingAccountBox match {
+        case Full(account) => 
+          // If account found in database, return it
+          Future.successful((Full(account), updatedCallContext))
+        case _ => 
+          // If account not found, check if we can create in-memory account
+          counterparty match {
+            case Some(cp) =>
+              // Create in-memory account using counterparty information
+              Future {
+                val accountRouting1 =
+                  if (cp.otherAccountRoutingScheme.isEmpty) Nil
+                  else List(AccountRouting(cp.otherAccountRoutingScheme, cp.otherAccountRoutingAddress))
+                val accountRouting2 =
+                  if (cp.otherAccountSecondaryRoutingScheme.isEmpty) Nil
+                  else List(AccountRouting(cp.otherAccountSecondaryRoutingScheme, cp.otherAccountSecondaryRoutingAddress))
+
+                // Due to the new field in the database, old counterparty have void currency, so by default, we set it to EUR
+                val counterpartyCurrency = if (cp.currency.nonEmpty) cp.currency else "EUR"
+
+                val inMemoryAccount = BankAccountCommons(
+                  AccountId(if (cp.otherAccountSecondaryRoutingAddress.nonEmpty) cp.otherAccountSecondaryRoutingAddress else accountNumber), 
+                  "", 0,
+                  currency = counterpartyCurrency,
+                  name = cp.name,
+                  "", accountNumber, 
+                  BankId(cp.otherBankRoutingAddress), 
+                  new Date(), "",
+                  accountRoutings = accountRouting1 ++ accountRouting2,
+                  List.empty, 
+                  accountHolder = cp.name,
+                  Some(List(Attribute(
+                    name = "BANK_ROUTING_SCHEME",
+                    `type` = "STRING",
+                    value = cp.otherBankRoutingScheme
+                  ),
+                    Attribute(
+                      name = "BANK_ROUTING_ADDRESS",
+                      `type` = "STRING",
+                      value = cp.otherBankRoutingAddress
+                    ),
+                  ))
+                )
+                (Full(inMemoryAccount), updatedCallContext)
+              }
+            case None =>
+              // No counterparty provided, return failure
+              Future.successful((Failure(s"$InvalidAccountNumber, current AccountNumber is $accountNumber and no counterparty provided for creating in-memory account"), updatedCallContext))
+          }
+      }
+    } yield {
+      (finalAccountBox, finalCallContext)
+    }
+  }
+
   override def getBankAccountByRoutings(
     bankAccountRoutings: BankAccountRoutings,
     callContext: Option[CallContext]
diff --git a/obp-api/src/main/scala/code/model/BankingData.scala b/obp-api/src/main/scala/code/model/BankingData.scala
index 89d770d978..1976fb38ab 100644
--- a/obp-api/src/main/scala/code/model/BankingData.scala
+++ b/obp-api/src/main/scala/code/model/BankingData.scala
@@ -476,9 +476,10 @@ object BankAccountX {
     else if (counterparty.otherAccountRoutingScheme.equalsIgnoreCase("ACCOUNT_NUMBER")|| counterparty.otherAccountRoutingScheme.equalsIgnoreCase("ACCOUNT_NO")){
       for{
         bankIdOption <- Future.successful(if(counterparty.otherBankRoutingAddress.isEmpty) None else Some(counterparty.otherBankRoutingAddress))
-        (account, callContext) <- NewStyle.function.getBankAccountByNumber(
+        (account, callContext) <- NewStyle.function.getOtherBankAccountByNumber(
           bankIdOption.map(BankId(_)),
           counterparty.otherAccountRoutingAddress,
+          Some(counterparty),
           callContext)
       } yield {
         (Full(account), callContext)