Open banking startup LuxHub has signed up six major banks in Luxembourg to its Verification of Payee (VoP) and Routing and Verification Mechanism (RVM) technology.
The VoP scheme, developed by the EPC, will come into effect on 5 October. It provides all Payment Service Providers (PSPs) in the European Union and European Economic Area with a mechanism to verify the payee of an instant credit transfer.
LuxHub, which was founded by four Luxemburg banks, has now struck deals with the country's lenders, meaning that VoP will be embedded in the customer payment journey, whatever the Sepa payment initiation channel. Most Luxembourg account holders will benefit from a harmonised customer experience, being it through the retail or corporate channels.
Claude Meurisse, CEO, LuxHub, says: "We are proud to welcome these major banks, which represent a very large share of the bank accounts in Luxembourg, on our Payee Verification Platform. It increases the network and mutualisation effects and logically strengthens the platform.
"At the same time, we are still working on convincing other key players to join, with the overall goal of providing a robust and efficient platform that will ensure secure and verified credit transfers for payment services users (PSUs) as well as PSPs themselves."