Verification of Payee

Ensuring Accurate Payee
Verification is Challenging

Banks struggle with payee verification due to inconsistent name formats, typos, and special character variations across financial institutions. Up to 20% of payments fail due to mismatched names, leading to €3B lost annually from failed or misdirected transactions. Manual corrections increase operational costs, while rigid systems cause unnecessary rejections. The new SEPA Instant VoP regulation, mandatory by October 2025, requires banks to verify payees in real time.

Traditional matching methods lead to false positives and compliance risks, making it harder to balance security and user experience. A flexible, AI-powered VoP solution is essential to reduce errors, prevent fraud, and streamline payment operations.

To tackle these challenges, banks need a flexible and adaptive VoP solution that allows them to fine-tune verification settings, optimize matching accuracy, and reduce false positives without compromising security. ImPAI's configurable matching algorithms and threshold settings give banks full control over how payee verification is handled. By adjusting parameters and simulating results, institutions can see the impact of different matching strategies before applying them in live operations.

VoP as a Service:
Smarter & Configurable VoP

Our ImPAI VoP solution designed for SEPA Instant compliance, ImPAI VoP gives banks full control over payee verification, reducing errors and improving transaction success rates. With configurable algorithms, real-time validation, and simulation tools, banks can fine-tune their matching logic, reduce false positives, and streamline operations - all in one API-first microservices platform.

Key Business Services

Subscribing to ImPAI not only simplifies complex payment processes but also ensures:

VoP as a Service: Real-time Verification of Payee (VoP) for SEPA Instant Payments. Configurable matching algorithms & thresholds. API-based integration for online channels and backoffice systems
Routing & RVM as a Service: Local EPC Directory Service (EDS) copy for routing. Daily updates with BICs, IBAN reachability. Ensures seamless VoP request routing
Simulation Tool: Test different matching settings to understand the impact on customers, Fine-tune matching algorithms with adjustable weights and thresholds. Simulate VoP transactions to improve decision-making before going live

Adaptive Matching Technology

Our VoP solution utilizes a multi-layered matching approach to handle name inconsistencies, typographical errors, and formatting variations across financial institutions. Banks can adjust matching sensitivity using predefined settings or fine-tune proprietary algorithms to optimize verification accuracy while maintaining fraud prevention controls.

Key Features:

Flexible Matching Algorithms: Supports exact matching, phonetic analysis, and context-aware pattern recognition.
Configurable Thresholds: Adjust match confidence levels to reduce false positives and unnecessary rejections.
Preprocessing & Normalization: Cleans special characters, diacritics, and formatting discrepancies for better accuracy.

Long-Term Benefits

Real-Time & Batch Processing: Supports high-speed API-based verification and bulk transaction validation.
Simulation & Analytics: Test configurations and assess the impact of different matching rules before going live.