Verification of Payee: Facilization registers as a Provider of Routing and Verification Mechanism at the European Payments Council
Facilization to manage Verification of Payee solutions across Europe, simplifying inter-PSP integration, reducing operational burdens and strengthening payment security for financial institutions.
January 22, 2025
Facilization proudly announces its registration as a provider of Routing and/or Verification Mechanism (RVM) under the European Payment Council’s (EPC) Verification of Payee (VoP) scheme.
The VoP scheme liberalizes the inter-PSP space, facilitating seamless integration between Payment Service Providers (PSPs) and enhancing payment security across the Single Euro Payments Area (SEPA). As an RVM provider, Facilization will act as an intermediary node, ensuring secure and efficient mediation between requesting and responding to PSPs. The VoP scheme will become mandatory starting October 5, 2025, representing a major milestone for financial institutions across the Eurozone, including banks, Electronic Money Institutions (EMIs), and Payment Service Providers (PSPs). As a company with extensive experience in the payments field, Facilization has decided to position itself as a partner offering this service.
Why this matters for financial institutions
This scheme requires PSPs to verify the identities of both payers and payees before processing any transactions. Partnering with an RVM provider, like Facilization, will remove the need for PSPs to create their own solutions for interbank communication, helping them to save time and reduce costs while effectively minimizing fraud and ensuring safer and more convenient transactions for customers across board.
The registration at the European Payment Council (EPC) enables Facilization to handle requests for verifying payer and payee identities on behalf of PSPs, as well as managing their responses, through developing its own solution. Facilization’s goal is to successfully complete testing its solution with the EPC by May 2025 and help financial institutions be fully compliant with the Regulation within the specific deadline.
Olti Qirici, Solution Architect at Facilization, remarked, “Financial institutions held almost 20% of total fraud losses for credit transfers, according to the EBA & ECB’s 2024 Report on Payment Fraud. These losses are linked to issues like weak fraud prevention, security breaches and gaps in consumer protection compliance. The Verification of Payee (VoP) offers a strong solution, delivering precision and trust to effectively fight this persistent threat to payment systems”.
The VoP scheme provides financial institutions with a great opportunity to enhance security in payment verification processes, significantly reducing fraud and misdirected payments. These improvements will not only boost customer satisfaction but also foster greater trust among bank users. Its implementation is required across the Single European Payments Area (SEPA) by October 2025.
To learn more about Facilization’s RVM solution and integration services or explore partnership opportunities, contact us: paytech@facilization.com