Banking & Payments Federation Ireland (BPFI) is advising consumers and businesses to prepare for changes in how they send and receive money with the introduction of SEPA Instant Payments and Verification of Payee (VoP).
As banks and payment service providers start rolling out SEPA Instant payments, personal and business customers will be able to make a euro payment within 10 seconds, 24 hours a day, any day of the year. Customers will also get confirmation within 10 seconds of making a payment that it has been received by the payee.
Alongside this, a new service known as Verification of Payee or VOP will also be introduced for both SEPA Instant and standard SEPA payments. VOP works by automatically checking that the name of the person or business a customer intends to pay (payee), matches with the actual name on the recipients account when making a payment. This new added layer of security will help customers ensure that their payments are going to the right recipient. Customers should check that their existing payee names match with the actual name on the payee’s bank account and if not, they should update them. For example, any payees listed using descriptions like ‘rent’ or ‘creche’ should be updated to the correct account name.
These changes reflect a broader effort across Europe to modernise the payments infrastructure and protect consumers with the additional services being introduced as part of the EU’s Instant Payments Regulation.
BPFI launch nationwide information and awareness campaign including online resource Payrightnow.ie
In the lead up to these changes BPFI, in conjunction with member banks and payment service providers*, have launched a public awareness campaign, to explain to consumers and businesses how these new services will work and the changes they can expect to see. Central to the campaign – which will be supported by national radio, digital and social media advertising – is the launch of a new online resource www.payrightnow.ie, which provides a comprehensive range of information and FAQs including specific advice for business customers on how to ensure incoming and outgoing payments are successfully verified under the new VOP process.
New research carried out by BPFI as part of the campaign shows that that almost three quarters (74%) of people in Ireland worry about transferring money from their bank account to the wrong person or business, whether it’s online, on mobile or in branch and one in five adults have accidently transferred money or been scammed into transferring money from their bank account to the wrong person or business.
Speaking on the launch of the campaign, Gillian Byrne, Head of Payments, BPFI said: “The rollout of SEPA Instant Payments and Verification of Payee marks a major step forward in providing faster and more secure payment services to Irish consumers and businesses. From next week SEPA Instant will offer near real-time payment processing across all banks and payment service providers enabling consumers and businesses to make and receive payments within 10 seconds 24/7.
“In parallel with this we will also see the implementation of Verification of Payee or VOP which will add an extra layer of security for customers by providing them with greater control and confidence when making payments.
VOP checks will automatically take place on both standard and instant SEPA payments and compare the name of your payee with the actual name on the recipient’s account. When the check is complete, customers will be advised if there is match, close match or no match and can then choose to proceed with the payment, correct the name and retry, or cancel the payment.”
“In light of the changes which customers will be experiencing, today BPFI in conjunction with member banks and payment service providers have launched a major public awareness campaign to explain these new services to customers and outline the changes and benefits they can expect to see. To that end we would encourage all customers to log onto www.payrightnow.ie where they will find a wealth of practical information on both SEPA Instant and VOP as well as links to information specific to individual banks and payment providers. We are particularly mindful of business customers who process much higher volumes of payments and have also therefore included in our website specific information on how these customers can ensure their incoming and outgoing payments continue to be processed smoothly.”
SEPA Instant Payments and Verification of Payee form part of a broader set of measures under the forthcoming Instant Payment Regulation (IPR), which aims to modernise and harmonise payments across the European Union. These features are designed to enhance the speed, security, and convenience of electronic payments, reduce fraud, and strengthen consumer protection. Their rollout reflects the ongoing efforts of European policymakers and the financial sector to promote innovation and build greater trust in the payments ecosystem.
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* Payrightnow.ie campaign members are AIB, Bank of Ireland, PTSB, Credit Unions (Payac) and An Post Money.
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 120 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace.
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