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As the October 2025 deadline approaches, payment service providers (PSPs) across Europe face mounting pressure to comply with the European Union's Verification of Payee (VoP) requirements. This initiative, set forth by the European Payments Council (EPC), is not merely a regulatory obligation; it is essential for safeguarding operational integrity, fostering customer trust and maintaining a competitive edge in the rapidly evolving payments sector.
In Belgium, most of the Belgian banks are even targeting the end of June to go live with Verification of Payee for both instant and non-instant domestic SEPA transactions.
Understanding Verification of Payee (VoP)
Essential VoP requirements
- Name and IBAN verification: PSPs must validate the payee's name against their International Bank Account Number (IBAN) prior to executing a payment. This process involves the payer's PSP sending a verification request to the payee's PSP, significantly reducing the risk of fraud and misdirected payments. Additional identifiers, such as VAT numbers or Legal Entity Identifiers (LEIs), may also be verified. Institutions must carefully consider whether to manage this service internally or outsource it to a Routing and Verification Mechanism (RVM).
- Real-time verification: The VoP process must be executed swiftly to enhance user experience. The payer's PSP is required to inform the payer of the verification outcome —whether it is a match, no match, close match, or unable to verify — before payment authorization. Payers retain the option to authorize payments even in cases of no match or close match, necessitating a thorough understanding of the verification process and timing.
- 24/7 availability: VoP services must be operational around the clock, reflecting the continuous nature of instant payments. Institutions’ feedback indicates that this requirement significantly influences their assessment of payment system criticality, necessitating enhanced resilience and maintenance efforts.