Tietoevry Banking has registered with the European Payments Council as a provider of Routing and Verification Mechanisms (RVM) for Verification of Payee (VoP), coinciding with the implementation of new instant payment regulations throughout the Eurozone.
The Nordic banking technology firm has teamed up with Movitz Payments to conduct essential security checks, which will include the confirmation of both the payer and the payee. VoP schemes are mandated for rollout across the Single European Payments Area by October 2025, following the recent deadline for all Eurozone banks to support 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,” stated Anders Olofsson, head of sales for payments and cash management at Tietoevry Banking. “The registration we are announcing today enables us to manage requests to verify payer and payee identities on behalf of banks, along with the corresponding responses. This will save banks time and money, while providing a solution that has proven effective in reducing fraud and facilitating faster, safer, and more convenient transactions for all clients.”
Initially launched in the Netherlands, the UK, and other countries in 2018, VoP has demonstrated significant effectiveness in reducing fraud and minimizing misdirected payments. Dutch banks reported an 81% reduction in fraud cases, particularly in invoicing scams, while customers in general experienced a 67% decrease in misdirected payments. For corporate clients, the number of unrecoverable invoices dropped by 50%.
“The industry spends approximately $120 billion annually to address failed payments. When implemented effectively, Verification of Payee can serve as a powerful tool to minimize both misdirected and fraudulent transactions while greatly enhancing the user experience,” remarked Magnus Hedenberg, CEO of Movitz Payments. “By integrating market intelligence with Verification of Payee across both online and batch payments, banks can achieve unmatched levels of security and convenience.”