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Verification of payee (VoP): Ensuring compliance and seamless integration in PSP payment ecosystems

European payment service providers (PSPs) will need to implement verification of payee (VoP) services in the coming months, as mandated by the Instant Payments Regulation (IPR) for instant payments. With the forthcoming Payment Services Regulation (PSR), the requirement will then be extended to all payment types.

The VoP scheme allows the payer’s PSP (the requesting PSP) to send a request to the payee’s PSP (the responding PSP) to verify the payee’s name and account information given by the payer (the payment service user/requester) before the transaction is executed. This requires a harmonized technical framework and standards to promote consistent implementation across the Single Euro Payments Area (SEPA).

VoP is guided by three primary objectives:

  1. Reducing fraud. VoP aims to prevent misdirected or fraudulent transactions by confirming the payee’s name and account details match.
  2. Enhancing trust. VoP builds consumer confidence by improving the accuracy of payments.
  3. Ensuring interoperability. VoP introduces a unified framework of rules, practices and standards for both SEPA payments and SEPA instant payments, allowing PSPs to cooperate seamlessly across Europe. 

With the IPR’s VoP obligation applying from 9 October 2025, PSPs face a tight timeline to implement these measures. To address this regulatory obligation, the European Payments Council (EPC) published two documents in late 2024:

  • The Verification of Payee Scheme Rulebook provides rules, practices and standards to achieve interoperability for verifying payment counterparty account numbers and names before initiating an account-based payment within SEPA.
  • The Verification of Payee Inter-PSP API Specifications establishes standards and rules for using and integrating the inter-PSP application programming interface (API), including data formats, calling conventions and response codes. It also defines the authentication and authorization mechanisms (e.g., API keys) to protect the data exchanged via the API. 


Key elements of the VoP scheme

The VoP Scheme Rulebook and VoP Inter-PSP API Specifications introduced several significant details to enhance the VoP process.

  • Extended verification time. The maximum verification time has been extended from three (the initial proposition by the EPC during the VoP consultation) to five seconds (but preferably one second or less).
  • Use of identification codes. For legal entity payees, PSPs can use identifier codes, such as the legal entity identifier (LEI) or value-added tax (VAT) number, instead of the name.
  • Bulk payments handling. Transactions in a bulk payment file will require individual verification to ensure high security and accuracy.
  • Introduction of the EPC directory service (EDS). The EDS is a centralized system that stores and maintains operational data about participants and facilitates PSP interoperability. It will be active by March 2025. 

All concerned PSPs will need to adhere to the VoP scheme and register to the EDS, for an initial period of 3 years starting from October 2025. The EPC has opened the VoP scheme adherence process since March 24, 2025.


PSP challenges

While the VoP scheme seeks to improve payment security and standardization, key challenges include tight deadlines, interoperability, bulk payments, and ambiguous “close matches”.

By October 2025, PSPs will have to define their VoP strategy, select a VoP solution, integrate this solution into their ecosystem and perform the relevant testing activities. Regarding testing, to ensure the requester, requesting PSP and responding PSP operate seamlessly within the ecosystem, they will need to exchange these four key messages:

  1. VoP request initiation;
  2. VoP response;
  3. Acknowledgment of receipt; and
  4. Notification to the requester.

To align all PSPs under a unified framework will require standardized processes and widespread integration with the EDS. To ensure smooth data exchanges, PSPs will need to consistently implement the VoP scheme across their diverse systems and cooperate with each other.

Upgrading existing systems to handle real-time verification and meet VoP requirements will require significant overhauls, including faster data processing and additional API connections. Other changes may be needed when considering the entire ecosystem, including internet banking platforms and other payment initiation modules.

PSPs must also address broader issues like data exposure risks and ensure strong security across the VoP process, particularly in API exchanges, secure file transfer protocol (SFTP) connections and EDS data management.

According to the VoP Scheme Rulebook, while batch VoP requests can be exchanged between a payment service user (PSU) and its PSP, only single requests will be allowed between PSPs. Individually verifying each payment in bulk files will require efficient processes to handle high transaction volumes.

Ambiguous “close match” scenarios during VoP (such as XYZ Ltd versus XYZ Limited) will need to be standardized to avoid confusion and minimize errors and payment delays.

The current VoP Scheme Rulebook specifically addresses VoP for SEPA credit transfers (SCT) and SEPA instant credit transfers (SCT Inst). However, future VoP scheme rulebooks may include other payment instruments, depending on market needs and interest.

PSPs should also consider other recommendations, such as the EPC Recommendations for the Matching Processes under the VoP Scheme Rulebook, which provides best practices for handling close match scenarios and ensuring consistency across PSPs. New Eurosystem initiatives, such as the request for proposal for an API test toolbox for the VoP program, further emphasize the changing landscape and the significance of preparing for future developments. In addition to VoP solutions offered by vendors on the market, it has also recently been decided that the Eurosystem will offer two solutions based on the services developed by the Banco de Portugal and Latvijas Banka, designed in accordance with the VoP scheme developed by the EPC.

How Deloitte can help

Deloitte is your trusted partner for implementing VoP. Our structured approach covers the entire VoP compliance journey, from the initial assessment to the full implementation and deployment of VoP services within your payment infrastructure.

  • Gap analysis and strategy definition. We define the overall VoP strategy, including the recommended integration mode into existing systems (e.g., definition of APIs) and key rules (e.g., bulk payments and close match criteria). We ensure there is a clear roadmap in place before selecting providers and testing and implementing the VoP solution.
  • Target infrastructure design. We develop the target infrastructure based on the defined strategy and integration mode, while incorporating all the existing systems’ relevant components.
  • Vendor selection. We analyze existing market vendors, support the selection process based on the predefined integration model, and assist with contractual engagements, including guidance during the request for proposal (RFP) process.
  • Testing and validation. We support the definition of a dedicated testing strategy, monitor VoP testing, and track reporting issues to ensure the VoP solution’s timely implementation.
  • Implementation and deployment. We coordinate VoP vendors, IT providers and internal teams to ensure seamless integration with your existing payment system or core banking system (CBS) up to the solution’s final deployment. 

At each stage, Deloitte provides regulatory and technical expertise alongside hands-on support, to ensure a smooth and fully compliant VoP implementation in line with the 9 October 2025 regulatory deadline.

Get in touch

Alexandre Havard

Partner | Advisory & Consulting
+352 45145 3148

Sébastien Genco

Partner | Technology Strategy & Transformation
+352 45145 2831

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