Verification of Payee (VoP): Enhancing Payment Security Across Europe
In the era of instant digital payments, speed is crucial, but it also increases the risk of mistakes and fraudulent activities.
To mitigate this risk, the European Union is introducing a new safety feature called Verification of Payee (VoP), designed to ensure that every transaction reaches its intended destination.
VoP is a straightforward yet potent tool that verifies the account holder's identity, confirming that the account belongs to the intended recipient, whether an individual or a business.
- VoP helps protect against fraud by validating the account details.
- This feature is particularly relevant in the Single Euro Payments Area (SEPA), where it is changing the way trust and transactions are facilitated.
It might sound small, but this single step is changing how we trust and send money in the Single Euro Payments Area (SEPA).
For instance, when sending money to a friend, supplier, or business, users typically enter the recipient's name and IBAN, a unique string of numbers identifying a bank account.
Author's summary: VoP enhances payment security across Europe.