finAPI offers its own VoP solution as a service for banks and third-party providers (TPP)
Since October, 9th 2025, a new requirement applies across the EU: before any transfer is executed, the name of the payee must be checked against the IBAN provided. This so-called Verification of Payee (VoP) ensures that transfers are sent to the correct recipient, prevents typos and significantly reduces fraud attempts such as APP fraud.
VoP is therefore more than just a technical requirement – it increases security, trust and transparency in payments. Payment service providers and banks must adapt their systems accordingly to perform the IBAN-name check before a payment is authorised.
finAPI has developed its own VoP Service to take over this verification for non-licensed customers as a payment initiation service provider. Customers who use finAPI’s PSD2 licence and web form therefore automatically benefit from VoP checks carried out by finAPI. In addition, finAPI also offers the VoP Service to licensed banks and payment service providers without their own VoP solution.
How does Verification of Payee work?
What companies should consider to prevent a “No Match”
For payers, the result of the payee check is not always clear – especially when the entered name seems plausible but does not exactly match the account holder’s name. In such cases, a “No Match” may occur even though the payment is correct.
Typical practical examples without a clear “Match”
- A patient pays a private invoice to “Dr. Smiles, Dentist”. The IBAN is correct, but the account holder’s name is simply “Jane Smiles”.
- A transfer to “Downtown Fitness Club” returns a “No Match” because the account is registered under “Sabrina Strong”.
- The company “Hero Plumbers” lists its business name on the invoice, but the account holder is “Harry Plumber”.
Avoid uncertainty and payment cancellations
Affected businesses can also check with their bank to see if it offers so-called aliases, allowing multiple names to be registered to enable a “Match.”
Alternatively, they can include a QR code on invoices containing all payment details. Customers simply scan the QR code to make the transfer as usual. This avoids typos and ensures the VoP check reliably returns a “Match”.
Regulatory obligation for all payment service providers
All payment service providers in the SEPA area will be required to perform a Verification of Payee before executing a transfer. This means that not only banks, but also payment service providers like finAPI, must check whether the recipient’s name matches the provided IBAN. For consumers, this creates greater transparency and security, while for companies it introduces an additional challenge in terms of technical implementation.
Why finAPI relies on its own VoP solution – for itself and as an offer for banks and TPPs
Many providers use external routing and verification services for VoP. finAPI deliberately takes a different approach and has developed the VoP functionality entirely in-house.
Qualified as an RVM provider in the VoP scheme
finAPI has successfully registered and qualified as a Routing and/or Verification Mechanism (RVM) provider with the European Payments Council (EPC) under the VoP scheme.
Conclusion: Secure payee verification as a VoP Service for banks and TPPs
With its self-developed VoP Service, finAPI offers banks and third-party providers an easily integrable and regulatory-compliant way to implement payee verification in accordance with EU regulations. Instead of undertaking a complex in-house development, customers benefit from a reliable service that meets the highest standards of quality, performance and security – in short: VoP-ready with finAPI.
Like to know more or have questions about our VoP service?
Simply use our contact form. Our sales team will be happy to support you.
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finAPI GmbH
Adams-Lehmann-Str. 44
80797 München
BaFin
Officially licensed and supervised by the German Federal Financial Supervisory Authority (BaFin).
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