Starting today, as part of the new SEPA Instant Payments Regulation coming into force, all banks and payment providers must now introduce Verification of Payee (VoP). This new requirement is designed to increase trust and security in euro transfers by checking that the account number (IBAN) and the beneficiary’s name match before a payment is sent. The global fintech company SumUp will also roll out this industry scheme to the more than one million merchants who use its business account across Europe, making their payments even more secure.
“For small businesses, even the smallest mistake when making a payment can cause disruption. Verification of Payee gives an added layer of trust by ensuring money goes to the right account. At SumUp, protecting our merchants goes hand in hand with empowering them – it’s not just about sending or receiving money, but making sure every transaction is secure, transparent, and reliable.” explains Antoniya Ditsova, Product Lead – Global Banking at SumUp.
The integration of VoP is part of SumUp’s broader strategy to strengthen trust in digital payments in Europe. The fintech already deploys advanced authentication technologies, including multi-factor authentication (MFA), verification of card authenticity (for lost or stolen cards), behavioural detection, and automatic blocking of suspicious activities, which this new requirement complements. Therefore, ensuring regulatory compliance while offering proactive protection to merchants and their customers, consolidates SumUp’s position as a reliable and innovative payment partner in its European markets.
The payer’s bank will perform a real-time verification, which has four possible responses:
Exact Match: The account name provided matches perfectly with the IBAN on record.
Close Match: The name looks very similar – there may just be a small typo or spelling difference.
No Match: The name doesn’t match the IBAN provided.
Unable to Check: The check could not be completed – if the service is down, the recipient’s bank isn’t yet part of the scheme, or there’s a temporary technical issue.
“While VoP is not a complete solution to every payment security challenge, it represents an important step forward. By ensuring that money reaches the intended recipient, companies can avoid fraud and major cash flow disruptions. In Ireland, 74% of companies have experienced cybercrime, with fraud offences up 73% in the past 6 months, according to provisional figures from An Garda Síochána. In today’s climate of political and economic uncertainty, the regulation helps safeguard business transactions over the long term,” adds Antoniya Ditsova.
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