Payset prespective
July 2, 2024

International payment network Swift working on ‘Verification of Payee’ scheme integration in EU

Swift recently conducted research on Verification of Payee (VoP) schemes, instant payments, and related regulations. It found positive sentiments among survey respondents and is currently working to integrate VoP schemes across the EU.

Key takeaways 

  • 83% of Swift survey respondents believe upfront beneficiary checks are important 
  • New regulations require payment service providers (PSPs) to perform Verification of Payee (VoP) checks in the EU’s SEPA area by 2025
  • Many countries already use VoP checks within their own borders, but greater cross-border interoperability between schemes is still needed 
  • PSPs must also support sending and receiving instant transactions 24/7

Report Shows Support for Instant Payments Among SMEs

Swift, the leading bank-to-bank payment messaging network, recently published findings on the EU’s Instant Payments Regulation (IPR) and said it will provide related support.

A June 18 report from Swift indicates that 83% of queried decision makers at small and medium enterprises (SMEs) in France, Germany, Italy and Spain believe upfront beneficiary checking — or confirmation of recipient details — is important.

The respondents also expressed positive sentiments toward instant payments more broadly. Nearly 90% of respondents expect to be impacted by the regulation. Meanwhile, 44% expect the new regulation to help them save money, 27% expect the change to improve their cash flow, and 20% expect it to make their company more competitive.

Swift said elsewhere that instant payments offer “real and tangible” benefits because they give buyers more time to pay invoices and help sellers make shipments faster.

Both factors will help improve business flows and help reduce delays, per the release.

Compliance due October 2025

Instant Payments Regulation (IPR) means that payment service providers (PSPs) must allow customers to send and receive transactions within ten seconds on a 24/7 basis domestically and throughout the EU, according to the European Council.

Swift separately noted that PSPs must perform Verification of Payee (VoP) checks for cross-border payments within the Single European Payment Area (SEPA). 

It noted that regulation came into force in April 2024 but said that companies must comply with the VoP rules by an October 2025 deadline.

Swift observed shortcomings in both instant payments and VoP. It said that although many countries already use Verification of Payee (VoP) checks within their own borders, interoperability between schemes internationally is still necessary.

The network noted that instant credit transfers make up less than 13% of the total transfers across Europe. New regulation aims to improve the payments ecosystem.

Swift’s VoP role

Swift said it aims to facilitate interoperability of Verification of Payee (VoP) schemes for its own community through its Payment Pre-Validation solution.

The service will help financial institutions comply with regulation through their existing Swift  connectivity while guaranteeing secure standard financial data transmission. 

Marianne Demarchi, Chief Executive for Europe, the Middle East, and Africa at Swift, emphasized the company’s key role in the initiative. She said Swift is “ideally-placed at the heart of the industry” to build interoperability of VoP schemes. She also called the new regulation a “landmark development for the cross-border payments industry.”

Swift aims to transform early adoption into more widespread use. 

So far, at least two VoP providers — CBI and SurePay — have expanded their reach across Europe in cooperation with Swift.

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Frequently asked questions

What is a multi-currency account/virtual IBAN?

A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.

You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.

A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.

  • Funds can be deposited and withdrawn from the account for a small fee.
  • Account holders can send and receive money with other Payset users for free.
  • Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS. 
  • Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
  • We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days

Are there limits on the amount of money I can send and receive?

No, there are no transaction limits on Payset multi-currency accounts.

However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.

How is Payset regulated?

Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).

How do I send money from my account?

Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.

Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.

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