The European Payments Council (EPC) announced the new major initiative for PSPs, to strengthen security and improve interoperability in payments across Europe, which is planned to go live in October 2025.
WHAT IS IT ABOUT?
On October 10, 2024 the EPC issued the Verification Of Payee (VOP) rulebook describing guidelines and establishing verification APIs for PSPs in the Single Euro Payments Area (SEPA), which participants must comply with.
The VOP scheme implies a method of communication between payer’s and payee’s PSPs for account-to-account payments. The payer conducts payee verification through direct interaction between the two PSPs. They instantly exchange with the VOP messages: request for the payee’s identification, response — match, no match or close match.
Participants in the VOP must be registered in the EPC Directory Service (EDS). EDS stores the necessary routing data for processing requests and responses. It also enables the payer’s and payee’s PSPs to veriify that both are involved in the scheme. The EDS won’t contain any personal data or IBAN, as it will solely be used for routing purposes between financial institutions.
All VOP messages processing should be hold by special standardized VOP service in accordance with the rulebook either implemented by the PSP itself or in cooperation with the VOP service provider. That’s quite a challenge and choosing a correct technical service provider is a must whether PSP is already equipped with the domestic VOP or not, now it’ll need to be adapted to the new format outlined in the rulebook.
Solanteq will help you address the challenges whether it is to connect the current system or implement the new one from scratch. SOLAR Payment Hub and SOLAR Switch, with their rich APIs, help PSPs comply with current and upcoming requirements and establish a strong market presence.
THE TIMELINE
As the project launch scheduled for October 5th, 2025, and the deadline for PSPs to achieve VOP services conformity set for October 9th, the focus this year will be on preparation, initiation, and ensuring compliance.
The prime time for implementation is now. EDS most likely will be ready for trial from June 2025, it means that participants will have less than 6 months for probation and testing. With each passing day, the time to set up working VOP solution being ready to connect to the EDS, becomes more limited.
WHY TO COMPLY
Regulations and standards always come hand in hand with the opportunity to improve the customer journey. As the volume and variety of money transfers continue to grow, VOP offers a more convenient service and enhanced security for users who prioritize these aspects. The efforts of PSPs adopting this innovation will be positively received by their existing and potential clients improving the onboarding statistics. For individuals this will bring more confidence that the payment won’t be mistakenly sent to the wrong recipient or a fraudster. In case of dealing with merchants, it provides an opportunity to reduce disputes, enhance customer loyalty, track and control merchants to minimize fraud.
It’s time to catch the wave in a highly demanding market and implement the appropriate tools to deliver cutting-edge service for the clients. Embracing continuous modernization and staying open-minded to technological progress is essential for modern PSPs to remain competitive.
