In March 2025, the Eurosystem completed its exploratory work on a Verification of Payee (VoP) service for payment service providers (PSPs) in SEPA. This initiative aims to help PSPs comply with the EU’s Instant Payments Regulation for Euro credit transfers. The upcoming NextGen Nordics 2025 event, set to take place on 29 April 2025 at Münchenbryggeriet in Stockholm, Sweden, will delve into how VoP can mitigate fraud and streamline payments ahead of the scheme rulebook’s effective date on 5 October 2025.
Preparing for October 2025
While Nordic banks and fintechs have made notable advancements in innovation, achieving compliance with the Instant Payment Regulation poses challenges. Some financial institutions in the region have begun adapting their systems for VoP, while others are still planning or testing their approaches.
Preparedness levels vary across the sector, but there is a general sense of cautious optimism. NextGen Nordics is leading efforts to support the Nordic region’s shift toward a more secure and efficient digital payment system. This collaborative initiative involves industry stakeholders, regulatory agencies, and technology providers, driving the standardization and implementation of VoP in the region.
Creating a Harmonized VoP Process
Both banks and fintech firms acknowledge the critical role of the VoP framework in reducing fraud and enhancing transaction security, although alignment remains ongoing. Banks often adopt a conservative approach, concentrating on integrating VoP into their existing systems, while fintechs favor a more agile, customer-focused solution. The challenge lies in finding common ground to develop an effective solution across the financial ecosystem.
Industry collaborations, such as those facilitated by the Nordic Payments Council, are essential for fostering cooperation among banks, fintechs, and regulators to establish a unified strategy. Paulina Kudlacik, the confirmation of payee scheme manager at the Nordic Payment Council, will be speaking at NextGen Nordics, where banks and fintechs can access resources, best practices, and technical solutions to aid in VoP implementation.
Standardization of CoP and VoP Rulebooks
A significant aspect of successfully implementing VoP involves standardizing the CoP (Confirmation of Payee) and VoP rulebooks. These documents outline the methods for real-time payee verification, and ensuring their alignment across jurisdictions is vital for smooth and secure payment processing. As the deadline approaches, further clarity on the final versions of these rulebooks is anticipated.
Nordic stakeholders are closely monitoring these updates and collaborating to align their systems with the upcoming regulations. NextGen Nordics will offer guidance on navigating these regulatory changes, ensuring compliance with the Instant Payment Regulation while minimizing disruptions to current operations.
To delve deeper into VoP and the Instant Payments Regulation, join us at NextGen Nordics 2025 in Stockholm on 29 April. This event will provide expert insights and networking opportunities to prepare for the October 2025 deadline. Register now to secure your place. Bank representatives can attend for free, while tickets are available for software, IT, and consultancy providers supporting financial institutions. Don’t miss this important event.