Tietoevry Banking, a financial software solution provider based in the Nordics, has registered with the European Payments Council as a provider of routing and verification mechanisms (RVM) for verification of payee (VoP) solutions.
Tietoevry Banking has also partnered with Movitz Payments, enabling it to include confirmation of both payer and payee – adding an extra layer of security and confirmation for banks and their customers.
VoP solutions aim to reduce fraud and misdirected payments by confirming the identity of a payer or payee prior to any transaction. These solutions are mandated for introduction across the Single European Payments Area (SEPA) by October 2025.
First introduced in the Netherlands, the UK, and other countries in 2018, VoP solutions have proven effective in reducing fraud and cutting the number of misdirected payments. Dutch banks reported an 81 per cent reduction in fraud cases—specifically invoicing fraud—while customers reported a 67 per cent reduction in misdirected payments. For corporate customers, VoP solutions cut the number of irrecoverable invoices down by half (50 per cent).
Anders Olofsson, head of sales at Tietoevry Banking
“The mandate to introduce VoP solutions comes from the introduction of Instant Payments Regulations (IPR). IPR regulations themselves have presented some implementation challenges for banks, especially as they prepare for the arrival of the EU’s third payment services directive (PSD3), expected before 2027,” explained Anders Olofsson, head of sales for payments and cash management at Tietoevry Banking. “The registration we are announcing today empowers us to manage requests to verify payer and payee identities on behalf of banks, as well as responses. This will save banks time and money, while introducing a solution that’s proven to reduce fraud and deliver faster, safer and more convenient transactions for clients of all kinds.”
Fighting failed payments
“The industry spends an estimated $120billion annually to address failed payments,” added Magnus Hedenberg, CEO of Movitz Payments. “When used effectively, Verification of Payee becomes a powerful tool to minimise both misdirected and fraudulent transactions while significantly enhancing the end-user experience.
“By combining market intelligence with Verification of Payee across both online and batch payments, banks can achieve unparalleled levels of security and convenience. This enables financial institutions to not only reduce costs but also build trust and loyalty among their diverse clientele.”
Tietoevry Banking’s VoP solution follows rulebooks from both the EPC and the Nordics Payment Council (NPC), which means that banks and payment service providers (PSPs) of all kinds can meet scheme requirements within specified deadlines.
In addition to a VoP solution for the payer and payee, Tietoevry Banking’s solution offers advanced file handling capabilities to meet the wide-ranging requirements of both corporate and individual customers – as well as the capacity to add on individual capabilities as required by banks and PSPs.
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