European expansion of Konsentus' fully-managed Verification of Payee service

European expansion of Konsentus' fully-managed Verification of Payee service

Konsentus' Verification of Payee Service Enhances Instant Payments Across Europe

Konsentus, a leading provider of regulatory technology solutions, has launched its Verification of Payee (VoP) service to help banks and payment service providers (PSPs) across Europe enhance payment security, comply with the Instant Payments Regulation (IPR), and improve customer trust.

Benefits of Konsentus' VoP Service

1. Fraud Reduction and Enhanced Security The VoP service helps verify the identity of the payment recipient before a transaction is completed, reducing the risk of fraud, such as authorized push payment (APP) scams, by ensuring payees' names and account details match.
2. Compliance with Instant Payments Regulation (IPR) The IPR mandates faster, more secure instant payments across Europe. VoP enables banks and PSPs to meet these regulatory requirements by providing real-time verification of payee details.
3. Improved Customer Trust and Experience By reducing payment errors and fraud, VoP delivers a smoother and safer payments experience, increasing customer confidence in using instant payment services.
4. Operational Efficiency and Risk Management Automating payee verification reduces manual interventions and operational overhead related to dispute resolution, minimizing the cost and time associated with addressing failed or fraudulent payments.
5. Interoperability Across Europe Konsentus’ VoP service supports multiple banks and PSPs, promoting interoperability and harmonizing instant payment processes across different countries.

Implications of Adopting Konsentus' VoP Service

1. Need for Integration and Adoption Banks and PSPs must integrate Konsentus’ VoP solution into their payment infrastructure, which could require investment in technology and training but yields long-term efficiency gains.
2. Data Privacy and Security Considerations Handling payee verification data requires strict adherence to GDPR and other privacy regulations, and ensuring secure data transmission and storage is critical to maintain compliance and customer trust.
3. Competitive Differentiation Early adopters of VoP services may position themselves as leaders in secure instant payments, providing a key differentiator in a competitive European payments market.
4. Regulatory Alignment and Future-Proofing Aligning with IPR through VoP services prepares banks and PSPs for future regulatory enhancements, allowing them to adapt more readily to evolving compliance requirements and security standards.

Additional Features of Konsentus' VoP Service

• The VoP solution from Konsentus provides match, no match, and close match outcomes.
• Konsentus' VoP service integrates easily with the EPC Directory Service and other EU PSPs via a simple API.
• Konsentus has launched a fully managed Verification of Payee (VoP) service.
• The move is intended to strengthen fraud prevention and reduce misdirected payments across the eurozone.
• Konsentus' Certificate Chain Service (KCCS) automates eIDAS QWAC certificate authentication and eliminates the need for manual trust store management.
• The new solution aims to help institutions prepare for the incoming Instant Payments Regulation (IPR), which comes into force in October 2025.
• In the UK, a similar initiative, known as Confirmation of Payee, helped cut payment fraud by nearly 60% after its rollout in 2020.
• Konsentus is recognised by the European Payments Council (EPC) as a Routing and Verification Mechanism (RVM) provider.
• Brendan Jones is the chief operating officer at Konsentus.
• Konsentus also offers its Certificate Chain Service (KCCS) for institutions building VoP capabilities in-house.
• Konsentus has been chosen by DenizBank AG to support Open Banking operations. (Further reading)
• Konsentus offers a cloud-based, fully managed VoP service to PSPs across Europe.
• The VoP service is designed to support banks and payment service providers (PSPs) across Europe.

1. Konsentus' Verification of Payee (VoP) service, designed to support banks and payment service providers (PSPs) across Europe, aids in fraud reduction and enhanced security by verifying the identity of payment recipients before transactions, thereby reducing the risk of fraud and ensuring payee's names and account details match.
2. To meet the regulatory requirements of the Instant Payments Regulation (IPR), financial institutions can integrate Konsentus’ VoP solution into their payment infrastructure, ensuring compliance with the IPR by providing real-time verification of payee details, paving the way for faster, more secure instant payments across Europe.
3. Konsentus' VoP service aims to improve customer trust and experience by reducing payment errors and fraud, resulting in a smoother and safer payments experience, which is crucial in a competitive European payments market.
4. The Konsentus’ VoP service's easy integration with the EPC Directory Service and other EU PSPs via a simple API, offers operational efficiency and risk management by automating payee verification, reducing manual interventions, and minimizing the cost and time associated with addressing failed or fraudulent payments.

Read also: