Verification of Payee is now live in the Eurozone

Verification of Payee is part of the Instant Payment Regulation. It aims to increase security as the payments are becoming instant by validating the IBAN and name pair before each credit transfer. The go live was adopting a big bang approach which has been challenging for the 2650 participants served by 58 RVM (Routing and Verification Mechanism) providers such as Worldline. Starting from yesterday, all the Eurozone credit transfers are now passing through a verification of payee validation.

As stated during the last EPC (European Payment Council) VoP daily checkpoint, despite few issues, the go-live is overall successful. At Worldline, banks of all sizes across Europe, from leading to smaller private institutions have benefited from the reliability and the scalability of our RVM solution.

Reference made to the CoP return of experience, market was concerned facing a significant part of no match assessment  which would have stopped many of the intended credit transfers. This hasn’t been the case. We witness that overall the ecosystem name matching assessment resulted in 61% full match, 25% close match & 14% no match. The Worldline advanced name matching module did play its role maximising the number of close match without impacting the security with 52% full match, 38% close match & 10% no match.

The EPC recommended VoP transactions to be executed within one second. We measure that the ecosystem is responding within 692 ms and are proud to report that the Worldline solution has responded within 347 ms despite very complex name matching assessment to be done.

As expected even if most of the PSPs  were proposing VoP bulk capability, many corporates have decided to opt-out because their internal process wasn’t adapted to the 2 steps flow generated by the Verification of Payee. We have processed 15% of the transactions in batch.

If you want to increase your protection against liability shifts, opt for an RVM (Routing and Verification Mechanism) back-up solution. This will ensure you can make the most of the Worldline RVM solution performance and reliability in the unlikelihood of:

• Deficient primary RVM or RVM not ready in time​
• Primary RVM outage or maintenance window​
• Primary RVM max volume is reached

Learn more about Worldline’s Verification of Payee solution:

·       Our Worldline VoP Developer Portal

·       Our Verification of Payee product page

If you do have any questions or need further details about our solutions, please contact us.