Wondering why 5000+ Banks are taking a rational decision of Switching to VoP in 2025?
The answer is, increasing number of APP frauds across the European Union and the anticipated increase in these numbers expected as European countries roll out Instant Payments. According to a report by The Global Treasurer, APP fraud is threatening European banking and financial institutions causing a loss of more than 6.3 billion EUR so far. This is where the call for Verification of Payee comes into picture in the fight against APP fraud to move ahead with a more stable financial landscape.
The Verification of Payee, VoP implementation is a strategic need rather than just a regulatory requirement for safe operations in banking. Therefore, all banks and other financial institutions are being asked to implement Verification of Payee (VoP) solution within their systems as part of Instant Payment Regulation itself.
Let’s dive deeper and understand the benefits of VoP implementation before the European Financial Institutions get ready for the 2025 deadline by the European Payments Council (EPC):
Payee Verification: No misdirected payments
Financial institutions can significantly reduce the risk of errors in payments and unauthorised transfers by using the Verification of Payee (VoP) solution. This means that the money reaches its desired destination reducing the chances of wrong payments and financial loss. Checking mechanisms in the system prevent accidental mistakes and deliberate attempts at fraud that alleviates both institution’s and its customers’ anxiety.
Real-Time Account Verification: Reduced APP Fraud
Verification of Payee’s name-matching algorithms check the details entered by Payee, like the beneficiary’s name, IBAN and payment reference in real time and give the result accordingly as Full Match, Close Match, or No Match. VoP’s real time check before the payment authorisation process significantly reduces the chances of APP fraud. It provides an added layer of security against fraudulent activities which make it even more difficult for fraudsters to reach their intended goals.
Reduced Operational Costs
Verification of Payee reduces the amounts of manual intervention that occur as a result of mismatch in payee details before payments are being processed. Financial establishments benefit from less costs for conducting fraud investigations and fewer resources expended in addressing payment errors. This reduces the cost incurred concerning operations and allows re-allocation of resources towards other vital areas of operation in the business. The risk of human error in validating payments also becomes minimised during the verification process.
Enhanced Market Reputation
VoP implementation puts your institution in the forefront within the banking industry. Your bank can stand out as an innovator in customer protection because of adopting cutting-edge payment verification systems ahead of compliance date. This innovation attracts technology-savvy customers for banks. It enhances your brand image as a progressive financial house. Early adoption of VoP sends a signal of innovation and a commitment towards security and makes you a trendsetter in the banking industry
Increased Adherence to Compliance
Financial institutions can strengthen their adherence to the compliance standards by implementing VoP which not only complies with Instant Payment Regulations but does so with a commitment to protecting sensitive data. The high level of focus on compliance standards prevents regulatory fines and therefore, protect the overall profits of financial institution.
Increase in Reputation
VoP feature is of great value to organisations involved in loan disbursals, supply chain financing and even large-scale business-to-business transactions. The advanced verification process facilitates the business customer onboarding process and reduces the risk associated with lending to businesses. It gives an added confidence over high-value business transactions. VoP will serve as an added check to authenticate the business credentials and curb fraudulent applications for organisations disbursing loans.
Business Process Optimisation
VoP solution enhance smooth payment procedure, fewer error occurrences on processing payments and precision in their pay-outs to their suppliers. The streamlined and optimised payment procedure helps a financial institution achieve the gold standards of performance optimisation when processing instant payments. Its real value accrues over time as more payments are processed within seconds and business processes become smoother leading to more time for other business priorities and innovation.
TechnoXander: Your trusted Verification of Payee (VoP)
TechnoXander offers the best Verification of Payee, VoP available to the European market. The system follows compliances such as ISO 27001:2022 compliant and provides the strictest form of security through:
- Modern technology stack implementation
- Flexible pricing models
- Collaborative implementation approach
- Original solutions without white labelling
- End-to-end encryption
- Strong Authentication Protocols
- Full sandbox testing environment
- Dedicated support team
Seamless VoP Integration in 3 Simple Steps:
1. First Meeting and Introduction of NDA
2. Implementation plan and paperwork planning
3. Secure a VoP requester and responder status
Get ready to make payments in VoP more secure with TechnoXander. Reach out to info@technoxander.com to see how our VoP solution can protect your business and customers. Our team of experts will help you plan and implement within the 2025 deadline maximising the benefits of this crucially needed payment security feature.
