Starting October 1, 2025, all banks in Cyprus and across SEPA countries will implement the Verification of Payee (VoP) service. The main goal is to strengthen trust in electronic transfers and protect clients from mistakes when entering payment details, as well as from fraudulent schemes.
The concept is simple: before confirming a transfer, the bank will automatically check whether the recipient’s name matches the provided IBAN number.
- If the data matches, the transaction is executed instantly.
- If there is a partial match, the system will issue a warning.
- If the details do not match, the payment will be stopped.
This mechanism is expected to minimize the risk of losing money due to simple typing errors or fake account details.
How Online Transfers Will Change
VoP will apply to both standard and instant euro transfers, with no additional charges for the service. The verification takes only fractions of a second and is fully integrated into online and mobile banking.
For customers, this means greater confidence when paying bills or sending money to individuals. For businesses, it reduces the number of failed or incorrect transactions and minimizes costly reversals. With the rise of online payments and instant transfers, this service is becoming increasingly relevant.
Fighting Fraud and Cyber Threats
According to the European Banking Authority, cases of financial fraud in the EU have increased by 12% over the past two years. One of the most common schemes remains the manipulation of bank details to redirect payments. The introduction of VoP will act as an additional safeguard against such practices, enabling banks to detect suspicious activity more quickly.
Cyprus has also seen a rise in cybercrime related to bank transfers in recent years. The mandatory rollout of recipient verification in 2025 is expected to significantly reduce these risks.
Bank Readiness and Outlook
Cypriot financial institutions are already finalizing technical preparations to ensure the service is available to all users by October. European experience shows that such services substantially reduce both erroneous and fraudulent transactions.
For individuals, this represents a step toward safer online payments. For businesses, it enables faster settlements and lower transaction risks. In the long term, VoP will strengthen trust in Cyprus’s banking system and enhance the country’s attractiveness as a financial hub in the Eastern Mediterranean.