Current implementation of VOP

The following article examines the current implementation of VOP (Verification of Payee) in the SEPA area using Power BI-based analyses and provides further detailed information on VOP.

VOP is a new European Payments Council (EPC) scheme for payment transactions that ensures the identity of the payee in a standard SEPA Credit Transfer (SCT scheme) or SEPA Instant Credit Transfer (SCTInst scheme) matches the account holder data held by the receiving Payment Service Provider (PSP).

The goal of Verification of Payee is to detect and prevent erroneous transfers and fraudulent payments—especially those involving social engineering and Authorized Push Payment (APP) fraud—at an early stage. During a VOP request, before a payment is initiated, it is checked whether the specified payee name or payee ID matches the IBAN used. The response is typically a “Match,” “Close Match,” or “No Match,” allowing the payer to immediately see whether the payment is correctly addressed.

Current implementation of VOP by PSPs

The implementation of VOP by PSPs is currently mandatory for participants in SCT and SCTInst. Many PSPs already use VOP across the board, while others are still implementing the feature. The following analyses are based on publicly available data from the EPC Register of Participants (as of November 10, 2025):

Number of EPC participants grouped by SCT, SCTInst or VOP scheme

The Power BI table above shows how many BICs participate in the SEPA area, grouped according to the EPC schemes SCT, SCTInst or VOP.

List of current VOP participants

The following table shows all VOP participants listed by the EPC:

How can PSPs participate in Verification of Payee? (RVM vs. direct participation)

Payment Service Providers basically have two options for participating in Verification of Payee (VoP):

1. Via a Routing and Verification Mechanism (RVM) provider:
   An RVM is certified by the EPC and, as an intermediary or service provider for the PSP, handles the technical integration and communication with other PSPs or RVMs. This allows participating institutions to benefit from reduced implementation costs, standardized interfaces, and faster time-to-market. CPG Finance Systems GmbH is an EPC-certified RVM service provider and would be happy to assist you as a PSP with the implementation of VOP. Contact us!
2. Direct connection to the VoP infrastructure:
   With direct participation, the PSP integrates the VoP infrastructure themselves and communicates directly with the other participating PSPs. This option offers maximum control over routing, performance, and data flows, but requires higher technical specifications and their own IT infrastructure for it. CPG Finance Systems GmbH also offers PSPs a white-label product with CPG.vop for VoP. Contact us!

Both approaches enable full support of the VoP process – the decision depends primarily on strategic goals, cost structures and the desired degree of technical independence.

High-Level – How does Verification of Payee work?

VOP functions as a real-time verification process between the sending and receiving PSPs. Before a customer initiates a transfer (SCT or SCTInst), the sending PSP sends a VoP request to the potential recipient’s PSP. The recipient checks the IBAN/name/ID combination against its master data and returns a standardized response. The process is fully automated before the payment is released. This upstream validation reduces the risk of incorrect addresses, and fraudulent attempts can be detected during the initiation process.

Why is the current implementation of VOP important?

The growing number of app fraud and phishing-based fraud attempts is forcing banks and PSPs to integrate safeguards directly into the payment flow. VOP ensures that customers do not accidentally send funds to incorrect or manipulated recipient accounts. In addition to fraud prevention, VOP also supports regulatory requirements in the context of PSD2 and Open Banking, as verifying recipient data is a crucial element for greater transparency and security in European payment transactions.

Benefit argument for end users and companies

For consumers, Verification of Payee (VOP) offers a simple yet highly effective safeguard: they can immediately see whether the specified recipient name is plausible. Businesses benefit particularly with mass payments and supplier onboarding, as incorrect IBAN master data is detected early, minimizing dunning processes, returned payments, and fraud losses. VOP thus increases not only security but also data quality throughout the entire payment process.