Tietoevry Banking has secured registration with the European Payments Council (EPC) to provide Routing and Verification Mechanisms (RVM) for Verification of Payee (VoP) solutions across Europe.
In partnership with Movitz Payments, this will include confirmation of both payer and payee – adding an extra layer of security and confirmation for banks and their customers.
VoP solutions play a crucial role in enhancing security by verifying the identities of both payers and payees before transactions are processed. These solutions have been mandated for implementation across the Single European Payments Area (SEPA) by October 2025 to combat fraud and misdirected payments.
Anders Olofsson, head of sales for payments and cash management at Tietoevry Banking, said, “The mandate to introduce VoP solutions comes from the introduction of Instant Payments Regulations (IPR). IPR regulations themselves and have presented some implementation challenges for banks, especially as they prepare for the arrival of the EU’s third payment services directive (PSD3), expected before 2027.”
The company highlighted that its registration empowers it to manage verification requests and responses on behalf of banks, ensuring faster and safer transactions. “This will save banks time and money, while introducing a solution that’s proven to reduce fraud and deliver faster, safer and more convenient transactions for clients of all kinds,” Olofsson added.
VoP solutions have already demonstrated significant success in countries like the Netherlands and the UK, where they were introduced in 2018. Dutch banks reported an 81% reduction in invoicing fraud, while customers experienced a 67% decrease in misdirected payments. Corporate clients also benefited from a 50% drop in irrecoverable invoices.
Magnus Hedenberg, CEO of Movitz Payments, said, “The industry spends an estimated 120 billion USD annually to address failed payments. When used effectively, Verification of Payee (VoP) becomes a powerful tool to minimize both misdirected and fraudulent transactions while significantly enhancing the end-user experience.”
Tietoevry Banking’s VoP solution complies with rulebooks from both the EPC and the Nordics Payment Council (NPC), ensuring banks and payment service providers (PSPs) can meet compliance deadlines. The solution includes advanced file handling capabilities to cater to the diverse needs of corporate and individual customers, with additional features available to meet specific requirements.
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