Bank customers across Ireland are being urged to prepare for changes in how they send and receive money, as the rollout of SEPA Instant Payments and Verification of Payee (VoP) begins this month.
The new services, introduced under the EU’s Instant Payments Regulation, will allow personal and business customers to transfer euro payments in under ten seconds at any time of the day or night. Customers will also receive confirmation within the same timeframe that the payment has been delivered to the recipient.
Since January, banks and payment service providers within the eurozone have been required to receive SEPA Instant Payments. From 9 October, they must also give customers the ability to send payments instantly.
Alongside faster transfers, the introduction of Verification of Payee is designed to strengthen security. The system works by automatically checking whether the name of the person or business being paid matches the name on the recipient’s bank account. If a mismatch occurs, customers will be alerted and given the option to proceed, correct the details, or cancel the payment.
Banks are advising customers to ensure their existing payee details are accurate. For example, payees saved under labels such as “rent” or “creche” should be updated with the actual account holder’s name to avoid issues when the new checks take effect.
To raise awareness of the changes, the Banking & Payments Federation Ireland (BPFI) has launched an information campaign, including a dedicated website, Payrightnow.ie. According to BPFI research, 74% of people in Ireland worry about mistakenly transferring money to the wrong account, while one in five adults have either sent money to the wrong person or been tricked into doing so.
Gillian Byrne, Head of Payments at BPFI, said the rollout of both services represents a major advancement for 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 ten seconds, 24/7,” Byrne said.
“In parallel with this, we will also see the implementation of Verification of Payee, which will add an extra layer of security for customers by providing them with greater control and confidence when making payments. VOP checks will compare the name of your payee with the actual name on the recipient’s account. Customers will then be advised if there is a match, close match or no match before deciding how to proceed.”
The dual introduction of SEPA Instant Payments and Verification of Payee marks a significant shift in Ireland’s payments landscape, aiming to combine speed with stronger protection against fraud and errors.
