This decision aligns with the EU Instant Payments Regulation (Regulation 2024/886) and is a significant step towards improving payment security across the Single Euro Payments Area (SEPA).
The VoP service solutions, developed by Banco de Portugal and Latvijas Banka, are designed to meet the requirements of the European Payments Council's VoP scheme. These solutions will provide access for PSPs across the SEPA region, helping them fulfill their obligations to offer VoP services to their customers by the mandated deadline of 9 October 2025. The Eurosystem's coordination ensures these solutions are widely accessible and standardised across the euro area.
As part of the EU's efforts to improve payment security, the introduction of VoP is expected to significantly reduce fraud risks and payment errors. By verifying account details before initiating payments, the VoP service adds an essential layer of security. It will be available for instant payments settled in TARGET Instant Payment Settlement (TIPS) and for SEPA credit transfers, which are common forms of payment in the region.
PSPs operating within the euro area will be required to implement the VoP service by 9 October 2025, ensuring that they comply with the EU's regulatory framework for credit transfers. The two VoP solutions provided by Banco de Portugal and Latvijas Banka are designed to facilitate this process, providing PSPs with the tools necessary to meet legal obligations and improve payment accuracy and security.
The introduction of VoP services marks a pivotal development in the effort to improve payment security within SEPA, offering PSPs a crucial tool to meet regulatory requirements and safeguard against fraud in the payment ecosystem.
By implementing the Verification of Payee service, the Eurosystem is strengthening the overall security framework for euro-denominated payments, offering reassurance to both payers and recipients within the Single Euro Payments Area.
The recent expansion of SEPA’s geographical scope further underscores the importance of secure and efficient payment systems across Europe. With the European Payments Council (EPC) Board approving the inclusion of North Macedonia and Moldova in SEPA payment schemes, financial institutions in these countries will soon be able to participate in SEPA Credit Transfer (SCT), SEPA Instant Credit Transfer (SCT Inst), and SEPA Direct Debit (SDD) schemes. This expansion increases the total number of SEPA participants to 40 countries, enhancing cross-border payment integration and reinforcing the need for fraud prevention measures such as VoP.
Therefore, the introduction of VoP services by Banco de Portugal and Latvijas Banka will play a key role in protecting PSPs and consumers from fraud and misdirected payments, particularly as instant payments become more widespread. By verifying account details before transactions are initiated, VoP helps prevent unauthorised or erroneous payments. This coordinated effort by the Eurosystem reflects the region’s commitment to both financial inclusivity and payment security, ensuring that all SEPA participants can process transactions with greater confidence and reduced risk.
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