Insight

Verification of Payee, also known as Confirmation of Payee, is a part of the European Commission’s Instant Payment Regulation, which is expected to become legislative for cross-border instant payments for EU countries in 2025. While some countries already have an infrastructure for domestic use to develop further, many still lack a solution. In this article, Magnus Hedenberg, CEO at Movitz Payments, shares his insights from working with Confirmation of Payee and how stakeholders such as banks and PSPs best meet the challenge that lies ahead.

Big changes are coming to Europe’s banking and payment service industry. The Instant Payments Regulation, proposed by the European Commission, will ensure around-the-clock and direct transactions in the eurozone. Countries outside the zone also must implement the new regulatory framework. On the one hand, it is a welcomed proposition, as it strengthens the European market and trading amongst its countries, businesses, and citizens. On the other hand, how can instant payments also become more secure when APP fraud is at a record high? And is it even possible to make such fundamental changes to the digital infrastructure and banks' processes in such a short time?

This article aims to elucidate the concept of Confirmation of Payee (CoP) and its significance in ensuring secure financial transactions. It delves into the evolving landscape of CoP processes and highlights the necessary measures that financial institutions should adopt to stay ahead in safeguarding their payment offering.