Enhanced security with Verification of Payee (VoP)
A key feature of the IPR is the Verification of Payee (VoP) service. This security measure will be applied to all payments in digital services, verifying the IBAN and name of the payee as provided by the payer. This helps prevent payment fraud and reduces the risk of erroneous transactions. For businesses sending bulk payments, there is flexibility to opt out of VoP under the regulation.
“While helping in fighting payment fraud, VoP introduces a major change by requiring payees to verify their payee and billing data,” says Liisa Kanniainen. “Building the process for handling the VoP responses will take time, so we’ve designed our offerings to support a stepwise implementation approach.”
Nordea leads the change with APIs
The financial industry is right now in the middle of a paradigm shift as real-time payments become the norm rather than the exception.
"Banking APIs are a perfect fit to support this shift as they enable instant, secure, programmable money movement and information sharing. To enable our corporate customers to harvest the full benefit of instant payments and improve their processes, we will, in a step-wise process, provide verification and instant payments directly in the customers’ systems via APIs,” says Sanela Dulic, Head of Business Development & Open Banking.
Besides having instant payments and VoP available in our netbanks Nordea Corporate and Nordea Business, we have developed four key Premium APIs for our corporate customers. This approach enables customers to choose the service best suited to their needs, supporting their transition to real-time.