We have been hearing about VoP for several days, what is VoP?
In this article, we will explain you in details what it really means and its impact on open banking, especially in Europe.
A new chapter for open banking security
Starting October 9, 2025, the Verification of Payee (VoP) regulation comes into effect across the European Union under Regulation (EU) 2024/886. This milestone marks a major step toward safer and more transparent SEPA transfers, reinforcing trust between consumers, merchants, and payment providers.
What is VoP and why it matters?
VoP, or Verification of Payee, is a security mechanism designed to verify the match between the account holder’s name and the IBAN during a bank transfer. In simple terms, it ensures that the person or company you’re sending money to is indeed the rightful owner of that account.
This process reduces the risk of:
- Fraudulent transfers, where funds are sent to a manipulated or fake IBAN.
- Human errors, like mistyped account details.
- Business payment scams, where attackers impersonate suppliers or partners.
By making this verification step mandatory, the European Commission aims to increase consumer confidence in electronic payments and strengthen the foundations of open banking across Europe.
What does this mean for businesses and merchants?
For businesses handling online payments, VoP introduces an additional layer of validation. Before a transfer is initiated, the system must confirm that the beneficiary’s name corresponds to the IBAN provided.
While this may sound complex, it actually improves payment reliability by:
- Reducing failed or delayed payments due to incorrect details.
- Lowering chargeback and fraud management costs.
- Building stronger user trust in your checkout or payment flow.
How Huch is making the transition effortless
At Huch, we believe compliance should never come at the expense of simplicity. That’s why our team has fully integrated VoP verification directly into our open banking API, so you don’t have to lift a finger. Don’t worry, you don’t have to do anything, we have taken care of updating its API and performing the necessary verification actions in order to whitelist your bank accounts and perform VoP actions with its PIS partners.
Here’s how we stand out:
- Automatic compliance built-in : Huch’s API already performs the required VoP checks with our Payment Initiation Service (PIS) partners. All partner banks are gradually being whitelisted to ensure seamless compatibility before the October deadline.
- No technical update required : If you’re already using Huch’s payment solutions, your system will stay compliant without additional development or integration work.
- Real-time verification — Our updated infrastructure verifies name–IBAN matching in milliseconds, ensuring smooth, instant user experiences.
- Developer-first transparency — The VoP status and results are accessible directly in your API responses, making audit trails and reporting effortless.
In short, Huch turns a regulatory obligation into an opportunity to improve payment security, transparency, and customer confidence without adding friction to your workflow.
What’s next?
As open banking matures, regulations like VoP demonstrate the EU’s commitment to building a safer, more interoperable payment ecosystem. For merchants, PSPs, and fintechs, this evolution is not just about compliance ; it’s about delivering trust at every transaction.
👉 Already using Huch? You’re all set for VoP compliance.
👉 Not yet onboard? Let’s talk — we’ll help you enable secure, real-time payments across Europe, fully compliant by design.