EBA Clearing Sets Stage For Verification OF Payee Solution

EBA Clearing is planning to launch a continent-wide Verification of Payee solution before the year concludes. The feature will be ready by December. It will assist payment service providers (PSPs) in providing IBAN/name-matching solutions to their clients for their Sepa payments.

Payment Service Providers (PSPs) throughout the Single Euro Payments Area will have to provide such solutions to payers starting from October next year, as directed by the Instant Payments Regulation.

The Service Will Help Users Meet The Standards Of The Instant Payments Regulation

Head of service development and management at EBA Clearing, Erwin Kulk, stated that by introducing verification of payee, the company is adding another feature to their SEPA services. He added that it will assist users in preparing to meet the standards of the Instant Payments Regulation.

He further mentioned that the firm will provide various options on both the sending and receiving ends to ensure broad access for the Verification of Payee from the outset. The firm will also allow users to advance toward regulatory adherence at their speed.

EBA Clearing operates as a provider of Multi-national payment infrastructure fully owned by stakeholders that comprised of top European banks

It owns and manages a significant payment system in Europe for Euro transactions between financial institutions. This includes STEP2, a pan-European automated clearing house (PE-ACH). STEP1, a payment infrastructure for single euro transactions for local banks, and EURO1 for a high-value payment system. It also manages the RT1 platform for immediate payments introduced in 2017. Both STEP2 and EURO1 have been designated as Systemically Important Payment Systems (SIPS) by the ECB.

EURO1 Is Designed To Process Single Euro Payments Of High Importance

The company is located in Paris and has branches in Milan, London, Helsinki, Frankfurt, and Brussels. EBA Clearing was established by the Euro Banking Association (EBA) in June 1998 and is controlled by the leading payment banks in Europe.

Its first goal was to develop and manage the settlement and clearing system for high-priced euro payments, EURO1, which the EBA had assigned to EBA Clearing following the establishment of the Eurosystem in 1999.

In March 2013 the organization introduced MyBank, an Electronic authorization solution for online transactions. This service is designed to boost the development of e-commerce throughout Europe.

EURO1 is a Real-Time Gross Settlement (RTGS) equivalent high-value payment system that processes single Euro payments of high importance and urgency, mainly those of high value. EURO1 functions on a multilateral netting framework, where it regularly balances the accounts of participants’ banks as they process payments on behalf of each other’s clients.