The Eurosystem has finalised its exploratory work on introducing a Verification of Payee (VoP) service, a significant step in enhancing security across the Single Euro Payments Area (SEPA).
Eurosystem rolls out Verification of Payee
This initiative, leveraging existing solutions developed by Banco de Portugal and Latvijas Banka, aims to support payment service providers (PSPs) in meeting new regulatory requirements under the EU Instant Payments Regulation (Regulation 2024/886).
The introduction of the VoP service is set to significantly reduce fraud and payment errors.
By verifying the recipient’s account details before a transaction is initiated, users can ensure that funds reach the intended recipient, mitigating risks related to misdirected or fraudulent payments.
This measure is particularly relevant for instant payments settled via TARGET Instant Payment Settlement (TIPS) and SEPA credit transfers.
Central Bank-Backed Solutions for SEPA
The VoP service will be powered by two solutions developed by the central banks of Portugal and Latvia.
Both have been designed in compliance with the VoP scheme set forth by the European Payments Council (EPC) and will be coordinated by the Eurosystem, ensuring seamless SEPA-wide adoption.
By October 9, 2025, all PSPs operating in the euro area will be required to provide VoP services to their customers.
The new framework will give PSPs the flexibility to choose between the two Eurosystem-backed solutions, facilitating smoother regulatory compliance.
The ECB and its collaborating institutions believe this initiative will reinforce trust in instant payments, promoting a more secure and efficient digital payments ecosystem.
As fraud prevention continues to be a top priority for financial regulators, the introduction of VoP solutions represents a key milestone in modernising SEPA’s payment infrastructure.
This development signals a proactive approach to financial security in the EU, aligning with the broader goals of seamless, fraud-resistant digital payments across Europe.
For further details on the available VoP solutions, PSPs can refer to the Banco de Portugal and Latvijas Banka.
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