Tietoevry Banking has achieved a significant milestone by registering with the European Payments Council as a provider of Routing and Verification Mechanisms (RVM) for Verification of Payee (VoP) solutions.
In collaboration with Movitz Payments, this registration will enhance transaction security by confirming both payer and payee identities, a crucial step in fraud prevention and reducing misdirected payments across the Single European Payments Area (SEPA).
The implementation of VoP solutions is a direct response to the forthcoming Instant Payments Regulations (IPR) and the anticipated third payment services directive (PSD3) set to roll out before 2027. VoP solutions have already demonstrated significant efficacy in the Netherlands and the UK since their introduction in 2018, with Dutch banks reporting an 81% decrease in invoicing fraud and a 67% reduction in misdirected payments among customers.
Anders Olofsson, Head of Sales for Payments and Cash Management at Tietoevry Banking, explained the operational benefits: “The registration empowers us to manage identity verification requests for banks efficiently. This capability not only saves time and resources but also enhances transaction safety, making banking more secure and convenient for all clients.”
Similarly, Magnus Hedenberg, CEO of Movitz Payments, highlighted the financial impact of VoP solutions: “The industry spends an estimated $120bn annually to address failed payments. By deploying Verification of Payee effectively, we can significantly reduce misdirected and fraudulent transactions, thus enhancing the end-user experience and building trust among clients.”
Tietoevry’s solution is aligned with the rulebooks of both the European Payments Council and the Nordics Payment Council, ensuring compliance and flexibility in meeting diverse customer needs. This includes advanced file handling capabilities for both corporate and individual customers, with the option to tailor additional capabilities as needed by banks and Payment Service Providers (PSPs).
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