Verification of Payee (VoP): Enhancing Payment Safety Across Europe
In the era of instant digital payments, speed is crucial, but it also increases the risk of mistakes and fraud.
To mitigate this risk, the European Union is introducing a new safety feature called Verification of Payee (VoP), designed to ensure that every euro sent reaches its intended destination.
VoP is a straightforward yet effective tool that confirms the account holder's identity, protecting users from fraud by verifying that the account belongs to the intended recipient.
This single step is revolutionizing the way we trust and send money within the Single Euro Payments Area (SEPA).
For example, when sending money to a friend, supplier, or business, users typically enter the recipient's name and IBAN (International Bank Account Number), a unique string of numbers identifying a bank account.
VoP confirms that the account you’re sending money to actually belongs to the person or business you intend to pay.
Author's summary: VoP enhances payment safety in Europe.