VoP Goes Live – and Millions of EU Businesses Aren’t Ready

Why It Matters

VoP provides a low‑friction fraud filter that can prevent costly misdirected or fraudulent transfers, protecting liquidity and reducing fraud losses across the bloc. Meeting the mandate will require clean supplier data and staff training, making it a strategic priority for finance teams.

Summary

On 9 October 2025 the EU’s Verification of Payee (VoP) mandate went live, making a name‑IBAN match mandatory for every euro‑denominated SEPA Credit Transfer and Instant Credit Transfer. The rule, enforced across roughly 3,000 banks, PSPs and fintechs, adds a real‑time mismatch alert to curb authorized push‑payment (APP) scams that cost EU businesses over €2.4 billion in 2024. While the system does not automatically block payments, it introduces a friction point that can delay or halt transfers when the account holder’s name does not align, forcing firms to verify or correct data. Many companies, especially SMEs and those outside the Eurozone, were unaware of the rollout and may face payment delays, disputes, or compliance gaps.