Bank-to-bank payment messaging network Swift is working to enhance the interoperability of Verification of Payee (VoP) schemes across Europe. New research indicates that 83% of SMEs in France, Germany, Italy, and Spain consider upfront beneficiary checks important for cross-border trading.
The study, which surveyed over 2,000 business decision-makers, reveals that SMEs in the European Union view the EU’s Instant Payments Regulation positively. Many anticipate it will lead to cost savings, improved cash flow, and enhanced competitiveness. Nearly 90% of respondents expect to be affected by the regulation; 44% believe it will save their business money, while 27% think it will help improve cash flow. Additionally, one in five expects to gain a competitive advantage.
The regulation mandates Verification of Payee for cross-border payments within the Single European Payments Area by October 2025. Although several countries already implement VoP domestically, interoperability among these schemes is essential for international success.
To support this interoperability, Swift is developing its Payment Pre-validation solution, which will ensure the secure transmission of standardized financial data. This is critical for maximizing the effectiveness of VoP as a friction-reducing tool and will facilitate its widespread implementation in cross-border payments, allowing financial institutions to comply efficiently with the regulation using their existing Swift connectivity.
CBI and SurePay are two VoP providers that have expanded their operations across Europe and beyond in collaboration with Swift. Recently, Swift was engaged by Australian Payments Plus (AP+) to develop a confirmation of payee service on the domestic National Payments Platform (NPP).
Marianne Demarchi, Chief Executive for EMEA at Swift, stated, “The European regulation has the potential to be a landmark development for the cross-border payments industry. However, financial institutions face pressure to meet the Verification of Payee requirement by the October 2025 deadline. Swift is ideally positioned at the center of the industry to facilitate VoP scheme interoperability, simplifying the compliance process and providing peace of mind for users of cross-border payments, both within Europe and beyond.”