New fraud prevention measure making payouts even more secure

The implementation of the Verification of Payee (VoP) functionality, set to take effect across the EU in October 2025, will help reduce fraud and protect your business by ensuring account numbers and recipient names match before payouts are made.

In October 2025, the Instant Payments Regulation (IPR) will require all European banks to offer a Verification of Payee (VoP) service for instant euro transfers. This service ensures account numbers and recipient names match before payments are made, helping to reduce fraud and protect your business.

Instant payments move fast—and so do fraudsters

Fraud is exploding across Europe. One type in particular is gaining ground fast: Authorised Push Payment (APP) fraud. This happens when fraudsters trick consumers—or businesses—into sending money straight into criminal accounts, and the impact is real. According to the European Payments Council, APP scams account for €2.4 billion a year, with losses rising by 20–25% annually.

For merchants, the risk is impossible to ignore. In France alone, nearly 60% of all payment fraud is tied to APP scams, according to Banque de France.

As instant payments continue to grow, so too does the potential for fraud—and the need for better protection.

But here’s the good news.

In the UK, a simple verification step—Confirmation of Payee (CoP)—is already making a difference. Now, the same approach is being applied in Europe under Verification of Payee (VoP).

Let’s explore:

• What is VoP?
• How it protects your bottom line
• Why you should act now

The solution: Verification of Payee (VoP)

Verification of Payee is a new legal requirement that adds transparency and protection to every payment. Before a transfer is completed, VoP checks whether the recipient’s name matches their bank account number (IBAN). If there’s a mismatch, the payer receives a clear warning, allowing them to pause, verify, and decide whether to proceed.

It is a game-changer for fighting fraud without slowing down your payments. One quick check ensures every euro payment is transferred to the right account, across all EU banks. The math is simple: a small verification step today prevents massive fraud losses tomorrow.

The UK experience: proof that VoP works

The UK implemented a similar system, Confirmation of Payee (CoP), in 2020. Since then, according to Electronic Payments International:

• APP fraud losses dropped 17%, reversing a 39% spike the previous year
• The UK regulator expanded CoP to more than 400 financial institutions by 2024 to further strengthen security

The takeaway? Verification works. It prevents fraud, protects funds, and gives customers peace of mind.

Turn compliance into a competitive edge

VoP might start as a regulatory requirement, but smart businesses will use it as a strategic advantage. Integrating VoP into your payment workflows can protect your bottom line from fraud losses, offer a safer, smoother payment experience, allow you to stay ahead of compliance deadlines, and avoid penalties.

Why act now?

VoP is more than just a regulation—it’s a shield against fraud, a trust signal to your customers, and a compliance milestone your business can’t afford to miss.

Here’s how it benefits you:

• Stay ahead of the legislation: The VoP service will be mandatory in 2025 where banks will need to comply by October, but you can opt in now to ensure your payouts are secure once this change takes effect.
• Reduce fraud & AML risks: Verifying account details before payouts helps protect your business from fraud and mitigate AML risks.
• Extra value: The VoP service is an optional add-on when you use Trustly for payouts.

At Trustly, we help businesses navigate change with confidence. Trustly will offer this service as part of our Payout product. Whether preparing for VoP or looking to optimise your payments, we’re here to help you stay secure, compliant, and ahead of the curve. Contact us to discuss how you can get started with the VoP service and ensure your euro payouts are safe for the future.