Verification Of Payee Requirements (VoP) Under The EU's Instant Payments Regulation (IPR)

Co-author of the article is Julia Siebrecht

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From 9 October 2025, payment service providers (PSPs) in the EU will be required to offer payers a "Verification of Payee" (VoP) service prior to authorising a credit transfer. Payers who are not consumers may waive this VoP service but are allowed to opt back into provision of such service.

This VoP service obligation is part of the Instant Payments Regulation (IPR), adopted by the European Parliament and the Council on 13 March 2024 however the VoP requirement applies to all credit transfers and not just to instance credit transfers. In short, applying VoP aims to reduce fraud risks in payment transactions, enhance the security of SEPA credit transfers and strengthen consumer trust in instant payments. Where a payer authorises a credit transfer following it having been warned by the PSP of an incorrect unique identifier, the payer is liable for the transfer to an unintended recipient. The