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The Eurosystem, the central banking authority of the Eurozone, is set to implement a Verification of Payee (VoP) service for payment service providers (PSPs) operating within the Single Euro Payments Area (SEPA).
This initiative aligns with the EU Instant Payments Regulation, which mandates PSPs to offer VoP services for euro credit transfers. Under the regulation, payers must be notified of any discrepancies between the beneficiary’s account number and the name provided. The system will categorize results into four options: ‘match,’ ‘close match,’ ‘no match,’ or ‘other,’ enabling users to make informed payment decisions.
Since August last year, the Eurosystem has been exploring VoP solutions, leveraging models developed by Banco de Portugal and Latvijas Banka. These frameworks comply with the European Payments Council’s VoP scheme, ensuring seamless integration across SEPA.
The introduction of VoP is expected to enhance financial security by reducing fraud risks and preventing payment errors. By allowing payers to verify recipient details before initiating transactions, the system aims to improve trust and efficiency in digital payments.
Coordinated by the Eurosystem, the new VoP service will support instant payments—including those processed through the TARGET Instant Payment Settlement (TIPS) system—as well as SEPA credit transfers. This marks a significant step towards strengthening regulatory compliance and security in the European payment landscape.
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