Tietoevry Banking Gains European Payments Council Approval for Innovative Fraud Prevention Solutions

Tietoevry Banking has made significant strides in enhancing payment security by securing registration with the European Payments Council (EPC) for providing Routing and Verification Mechanisms (RVM) for Verification of Payee (VoP) solutions throughout Europe. This partnership with Movitz Payments aims to ensure both payer and payee confirmation, adding an essential layer of security for banks and their customers.

Importance of Verification of Payee (VoP) Solutions

VoP solutions are critical in the fight against fraud, as they verify the identities of both parties involved in a transaction prior to processing. These solutions are set to be implemented across the Single European Payments Area (SEPA) by October 2025 to significantly reduce fraud and misdirected payments.

Regulatory Context and Implementation Challenges

Anders Olofsson, Head of Sales for Payments and Cash Management at Tietoevry Banking, noted that the push for VoP solutions stems from the introduction of the Instant Payments Regulations (IPR). These regulations pose implementation challenges for banks, especially with the anticipated arrival of the EU’s third payment services directive, PSD3, expected before 2027.

Benefits of Tietoevry Banking’s VoP Solution

Tietoevry Banking’s registration allows the management of verification requests and responses for banks, leading to:

• Faster transactions
• Enhanced security
• Cost savings for banks

Olofsson emphasized, “This solution is proven to reduce fraud, delivering faster, safer, and more convenient transactions for clients of all types.”

Success Stories from the Netherlands and the UK

VoP solutions have already shown remarkable success in countries like the Netherlands and the UK, where they were introduced in 2018. Notable outcomes include:

• An 81% reduction in invoicing fraud reported by Dutch banks
• A 67% decrease in misdirected payments for customers
• A 50% drop in irrecoverable invoices for corporate clients

Financial Impact of Failed Payments

Magnus Hedenberg, CEO of Movitz Payments, highlighted the financial implications of payment failures, stating that the industry spends an estimated $120 billion annually to address these issues. When implemented effectively, Verification of Payee (VoP) can serve as a strong deterrent against misdirected and fraudulent transactions while improving the user experience significantly.

Compliance with Payment Regulations

Tietoevry Banking’s VoP solution aligns with the rulebooks from both the EPC and the Nordic Payment Council (NPC), ensuring that banks and Payment Service Providers (PSPs) meet compliance deadlines. The solution is equipped with advanced file handling capabilities, catering to the diverse needs of both corporate and individual customers.

For more insights on payment security and solutions, visit our related articles on Tietoevry Financial Services Solutions.