Tietoevry Banking has registered with the European Payments Council as a provider of Routing and Verification Mechanisms (RVM) for Verification of Payee (VoP) as new instant payment regulations come into force across the Eurozone.
The Nordic banking technology company has partnered with Movitz Payments for the security checks, which will include confirmation of both payer and payee.
VoP schemes have been mandated for introduction across the Single European Payments Area by October 2025, following on from this week's deadline for all banks in the Eurozone to receive instant payments.
"Instant Payments Regulations 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,” comments Anders Olofsson, head of sales for payments and cash management at Tietoevry Banking. “The registration we are announcing today empowers us to manage requests to verify payer and payee identities on behalf of banks, as well as responses. 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.”
First introduced in the Netherlands, the UK and other countries from 2018, VoP has proven highly effective both in reducing fraud and cutting the number of misdirected payments. Dutch banks reported an 81% reduction in fraud cases - specifically in invoicing fraud - while customers of all kinds reported a 67% reduction in misdirected payments. For corporate customers, the number of irrecoverable invoices was reduced by 50%.
“The industry spends an estimated $120 billion annually to address failed payments. When used effectively, Verification of Payee becomes a powerful tool to minimize both misdirected and fraudulent transactions while significantly enhancing the end-user experience," says Magnus Hedenberg, CEO of Movitz Payments. "By combining market intelligence with Verification of Payee across both online and batch payments, banks can achieve unparalleled levels of security and convenience.”