EBA CLEARING has unveiled a SEPA-wide Verification of Payee (VOP) solution designed to help payment service providers (PSPs) comply with the Instant Payments Regulation (IPR) and the European Payments Council’s (EPC) VOP Scheme.
SEPA-wide verification of payee
This innovative offering provides the 5,000 PSPs connected to EBA CLEARING’s RT1 and STEP2 systems with a comprehensive pan-European solution, fostering seamless reach across the Single Euro Payments Area (SEPA).
The VOP solution integrates EBA CLEARING’s advanced Fraud Pattern and Anomaly Detection (FPAD) technology, which has been operational since March 2024.
FPAD serves as a real-time fraud prevention framework for both RT1 and STEP2, leveraging network-level data to identify anomalies and detect fraudulent activities.
By utilising FPAD for VOP, PSPs gain access to robust fraud prevention tools while maintaining a smooth customer experience.
Erwin Kulk, Head of Service Development and Management at EBA CLEARING, emphasised the solution’s early delivery ahead of the IPR deadline:
“We are proud to offer our extensive user community a SEPA-wide VOP solution 10 months ahead of the IPR deadline.
This enables PSPs to refine their VOP services and seamlessly incorporate them into their payment processes.
The solution not only ensures compliance but also enriches fraud detection capabilities by combining VOP with other FPAD indicators.
This approach limits unnecessary user friction and enhances the overall customer experience.”
The solution offers flexibility for PSPs to adopt VOP functionality in phases, catering to both requesting and responding needs while ensuring full SEPA reach from the outset.
Furthermore, its ability to enhance VOP data with FPAD insights helps PSPs address fraud risks that might bypass traditional verification measures.
Developed in collaboration with fraud experts from participant institutions across Europe, the VOP solution is the latest innovation from EBA CLEARING, a trusted provider of cost-effective, pan-European payment infrastructure.
Its flagship systems, RT1 and STEP2, process SEPA Instant Credit Transfers, SEPA Credit Transfers, and Direct Debits, supporting a secure and efficient payments ecosystem.
This launch underscores EBA CLEARING’s commitment to advancing fraud prevention and compliance while prioritizing a seamless experience for PSPs and their customers.
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