Filenews 30 September 2025
As of October 2025, the new Verification of Payee (VoP) service – "Payee Verification" – will come into force in all banks operating in Cyprus and the SEPA zone, with the aim of enhancing security and trust in electronic payments.
The service is part of the European Payment Integration Strategy, requiring payment service providers (PSPs) to check the match between the payee's name and the IBAN before executing a money transfer. In this way, citizens and businesses will know with greater certainty that the remittance is being directed to the correct recipient.
How the service works
When ordering a transfer via internet or mobile banking, the VoP service compares the declared name with the beneficiary's bank details. The possible outcomes are:
- Full Match: the payment is executed normally.
- Close Match: the customer receives a warning about a possible error (e.g. spelling).
- No Match: warning of a high risk of the wrong recipient.
- VoP Not Possible: Technical issue or inactive account.
The process is completed in seconds and will be provided free of charge for both standard and instant payments in euros.
Benefits for consumers and businesses
Implementing VoP reduces the risk of mistakes causing delays or loss of money and offers protection against fraud through misleading information. Banks in Cyprus are making all the necessary technical adjustments so that the service is available within October 2025.
The initiative is supported by the European Payments Council (EPC), which provided guidance and information material to banks, businesses and consumers.
