An obligation for all types of credit transfers

With the advent of instant payments, industry experts foresee a significant rise in fraud, but also in honest mistakes which would lead to money being instantly transferred to the wrong bank account. To tackle this key issue for PSPs and payment service users (PSUs), the EU has imposed a mandatory beneficiary name-account details matching service before processing an instant payment. But it goes even further than IPs: VOP is to be implemented for any type of credit transfer, through all channels, from app and web to counter and automated teller machines.

The important project scope and the challenges in terms of user experience and connectivity make it difficult for PSPs to implement a VOP service. Moreover, it has to be done in parallel with other significant projects: being able to receive IPs by 9 January 2025, and send them by 9 October 2025. The latter date corresponds to VOP.

What’s in it for credit institutions and final users?

The VoP process brings significant benefits to both PSPs and PSUs: it enhances trust, security, and efficiency in credit transfers.

On the PSPs’ side, VOP helps reduce errors and fraud, fostering a reputation for reliability while providing a competitive edge through faster response times and seamless payment experiences.

PSUs benefit from the increased safety of verified credit transfers, as VOP ensures the beneficiary’s name and account details align, reducing the risk of fraud or mistakes. They will therefore be able to take informed decisions before processing a credit transfer. It is also important to note that if a PSU proceeds with a payment despite a “no match” result, he/she bears responsibility for any errors, whereas following a “match” result ensures funds are securely and instantly transferred to the correct account.

This shared responsibility highlights the importance of PSPs delivering accurate and efficient verification results to avoid liability for fraud or mistakes.

Kicking off your VOP project

Many challenges arise when launching a VOP project. The first one being connecting with potentially 5,000+ registered PSPs in the EU and with a combination of pan-European and local schemes and standards: the technical and operational challenge should not be underestimated. Finding expertise and bringing internal teams together to work on a project implying alignment of scope, regulatory requirements and timelines, is another key challenge.

Luxhub has developed a strong expertise in financial data and in connecting the different players of the financial services industry. With the Payee Verification Platform--which has already been selected by several major players in Luxembourg--Luxhub provides a robust routing and verification mechanism enabling PSPs to facilitate their compliance and ensure secure credit transfers.

For more information, contact Luxhub or visit 

This promotional article was written by Luxhub as part of the company’s membership with the Paperjam Club. If you wish to become a member of the Club, contact us at .