In October 2025, VoP (Verification of Payee) regulation will come into effect across the euro area, fundamentally changing payment security. Payment traffic solutions open new opportunities for companies to leverage this change as a competitive advantage.
At the same time, SEPA instant payments will become mandatory for all payment service providers. The updated instant payment regulation requires that the payee’s details are verified during the payment process. This is especially critical for instant payments, as they are irreversible and errors are more difficult to correct afterwards.
In light of these changes, it is useful to review your payment traffic risk environment, processes, and controls comprehensively. You can also request a risk analysis from your service provider. For example, at Azets, we offer payment traffic risk analysis as a service.
What Does VoP (Verification of Payee) Mean in Practice?
VoP, or Verification of Payee, is a security feature in payment systems that verifies the payee before the payment is executed. Banks must offer it for SEPA payments in the euro area starting from 9 October 2025. VoP applies to SEPA credit transfers (both single and bulk payments). It does not apply to SWIFT payments.
In practice, VoP compares the payee’s name with the IBAN number before executing the SEPA payment. This helps prevent fraud and accidental errors in payment transactions. Customers can choose whether to use VoP.
In practice, VoP compares the payee’s name with the IBAN number before executing the SEPA payment. This helps prevent fraud and accidental errors in payment transactions. Customers can choose whether to use VoP.
How VoP Functions in Principle:
- You initiate a VoP verification request
- The verification is done before the payment
- The response may be Match, Close Match, No Match, or Unavailable
- You can cancel the payment, proceed, or investigate further
Please note that validation practices may vary between banks and countries. A bank may also return an “Unavailable” response if they do not yet have a VoP solution in place.
Ensure Accurate Information for Smooth VoP Usage
If you adopt VoP:
- Ask suppliers to include their official name and other details on invoices as registered with the bank.
- Ensure these details are also correct in your company’s own systems. Even small errors can lead to incorrect verification results.
- Confirm that your systems support receiving VoP responses.
- Ensure your sales invoices include official details.
Payment Service Providers and VoP
Payment service providers play a key role in implementing VoP regulation. They integrate Verification of Payee functionality into their communication channels, allowing companies to offer secure payment verifications to customers without their own systems or banking licences. For example, at Azets, we offer VoP as a service through our accounting offices.
- Integration saves development resources
- No need for own regulatory compliance processes
- Quick market entry with new features
- Scalable solution for growing businesses
In practice, this means that an online store can offer real-time payment verification, an investment app can ensure secure fund transfers, and P2P payment apps can prevent accidental payments to incorrect accounts.
SEPA Instant Payments 2025: Real-Time Changes to Cash Management
With the introduction of VoP regulation, the mandatory adoption of SEPA instant payments in October 2025 brings significant benefits to corporate cash management. SEPA instant payments mean that funds move within about 10 seconds across the SEPA area. Instant payments operate around the clock, including weekends and holidays, eliminating bank cut-off times.
The speed of instant payments makes cancellations difficult. VoP is essential here: it helps prevent fraud and accidental errors in fund transfers.
Real-time functionality fundamentally changes how companies can manage their cash flows.
Business Benefits in Practice:
- Immediate payment confirmation – customer payments are visible in cash flow in real time
- Proactive budgeting – accurate data on upcoming payments enables better planning
- Smoother B2B transactions – supplier payments and invoicing are significantly faster
- Optimised investment decisions – excess liquidity can be invested immediately
This enables companies to adopt a completely new approach to process planning and optimisation.
Reduced Payment Fraud: VoP’s Security Benefits for Growing Businesses
As business grows, accounting requirements become more complex. At the same time, risks related to payment traffic, such as payment fraud, increase. Verification of Payee addresses this challenge by offering:
- Reduced payment fraud and accidental payment errors
- Improved customer experience – customers trust secure payment systems
- Savings in operational costs – prevention is more cost-effective than remediation
- Automatic regulatory compliance – compliance without separate actions
Preparing for VoP in 2025: Practical Steps for Companies
October 2025 is approaching quickly, and companies should prepare for VoP regulation and SEPA instant payments in good time. Verification of Payee and Banking as a Service are not just compliance requirements – they are strategic opportunities to improve business.
Recommended Actions:
- Map current payment processes – identify areas for improvement
- Identify risks – assess the coverage and effectiveness of payment traffic controls
- Evaluate solutions – compare providers and features
- Plan integrations – allocate sufficient time for implementation
- Train staff – ensure a smooth transition to new systems
The future of payment systems is built on real-time functionality, security, and user experience. VoP regulation and BaaS solutions together lay the foundation for this development, offering companies tools for growth and customers a better payment experience.
Get in touch if you’d like to discuss how Verification of Payee and Banking as a Service could benefit your business.