“Verification of payee will positively impact every bank customer's payment journey by enabling safer transactions through immediate IBAN-name check verification,” said Claude Meurisse, CEO of Luxhub, announcing the payee verification platform on Monday well ahead of the October 2025 deadline to lead the way in payment security standards among service providers. Photo: Luxhub

“Verification of payee will positively impact every bank customer's payment journey by enabling safer transactions through immediate IBAN-name check verification,” said Claude Meurisse, CEO of Luxhub, announcing the payee verification platform on Monday well ahead of the October 2025 deadline to lead the way in payment security standards among service providers. Photo: Luxhub

Responding to the EU’s Instant Payments Regulation, Luxhub has launched its payee verification platform on Monday--with backing from four major Luxembourg banks--targeting broad compliance among payment service providers by October 2025.

In the wake of the Instant Payments Regulation’s by the European Council, stakeholders of Luxhub, including Spuerkeess, BGL BNP Paribas, Post Luxembourg and Banque Raiffeisen, have voiced their endorsement for the company’s Payee Verification Platform. This platform, announced in a press release on Monday 18 March, seeks to simplify the implementation process of the Verification of Payee (Vop) mandate, a requirement set for payment service providers (PSPs) to fulfil by October 2025 for all credit transfers.

Although the deadline appears distant, PSPs are encouraged to initiate their compliance projects promptly to meet the timeframe, stated Luxhub. The Vop initiative is poised to revolutionise the banking experience for customers by mandating the verification of the recipient’s name against their International Bank Account Number (IBAN) before a credit transfer is authorised. This measure is designed to minimise errors and prevent fraud by ensuring payments are sent to the intended recipient. It is noteworthy that clients, except those conducting bulk payments, will not have the option to opt out of this verification service.

Liabilities

In scenarios where a transaction is authorised despite a discrepancy in the payee’s details, and the PSP has met all regulatory obligations, the PSP will not bear liability if funds are sent to an unintended beneficiary. However, liability may be assigned to either the payer’s or payee’s PSP in cases where the verification service fails or provides incorrect information.

Claude Meurisse, CEO of Luxhub, announcing the , emphasised the positive impact of Vop on the payment journey, stating the enhancement of transaction security through real-time IBAN-name checks.

Strategic importance

The adoption of Vop is regarded as a strategic undertaking for PSPs, especially in the context of instant payments. PSPs are mandated to enable the reception and processing of instant payments within nine and 18 months, respectively, following the publication of the Instant Payments Regulation. Vop’s significance is underscored by its potential to bolster security and trust in payments, particularly with the rise of instant payments.

A seamless and consistent user experience is crucial for the success of Vop, necessitating early customer education and gradual system deployment to foster acceptance and integration into regular payment practices, stated Luxhub in the press release.

Service accessibility

The Vop requirement necessitates PSPs to provide a 24/7 verification service, accessible to other PSPs, to confirm the alignment of the payee’s name (or other identifiers for legal entities) with their IBAN. This process hinges on sophisticated algorithms compliant with the European Payments Council’s Vop scheme, while also accommodating local specifications.

Data management

Leveraging its proficiency in API and data management, Luxhub has been developing the Vop platform for over a year. The firm aims to simplify access to Vop for its clients by acting as a central point of contact, drawing on its extensive experience in Payment Services Directive 2 (PSD2) aggregation and connectivity within the European Union. This strategic positioning enables Luxhub to offer efficient connectivity solutions to PSPs, facilitating compliance with regulatory obligations, stated the press release.

Luxhub serves over 80 clients across more than ten European countries, offering a range of compliance services and solutions in account aggregation and payment initiation.

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