Ozone API launches VoP guide for SEPA banks

These regulatory changes, introduced by the European Payments Council in October 2024, aim to improve security and reduce fraud in digital payments. Financial institutions must ensure compliance by 9 October 2025.

The VoP requirements are designed to tackle the growing risk of misdirected payments and APP fraud. As digital payments become increasingly dominant across the EU, the regulation mandates all SEPA participants to verify the recipient’s name before processing A2A transfers. This measure is intended to strengthen customer protection and improve trust in digital transactions.

Compliance options: in-house development vs third-party solutions

To meet the October 2025 implementation deadline, financial institutions must evaluate whether to develop internal solutions or collaborate with third-party providers. Building an in-house VoP system can be resource-intensive, requiring significant investment in technical infrastructure, operational restructuring, and staff training. In contrast, partnering with a dedicated technology provider may offer a faster and more cost-effective path to compliance.

Ozone API’s latest publication outlines the key components of VOP implementation, offering a structured roadmap for compliance. The guide includes:

• An overview of the regulatory rationale behind Verification of Payee;

• A breakdown of the specific changes mandated by the European Payments Council;

• Detailed timelines for compliance and implementation;

• Best practices for maintaining compliance as industry standards and technical requirements evolve.

As SEPA banks and PSPs prepare for the upcoming regulatory shift, the guide provides essential insights for managing compliance effectively while minimising disruption. With the rise in fraud and consumer reliance on A2A payments, timely adoption of VOP measures is expected to play a key role in securing the European payments ecosystem.

The introduction of VoP is part of a wider regulatory initiative by the European Payments Council and European Commission to modernise the SEPA payments ecosystem and improve consumer protection. As digital transactions become the norm, with over 80 billion electronic payments processed annually across the EU, regulators are under pressure to ensure that speed does not come at the cost of security. VoP complements existing measures such as SCA under PSD2 and the broader transition towards ISO 20022 messaging standards, which together aim to reduce vulnerabilities in electronic payments, improve data accuracy, and harmonise compliance procedures across SEPA member states.