Is Verification of Payee Mandatory for All UK Banks in 2025?

In recent years, payment fraud—especially Authorised Push Payment (APP) fraud—has grown rapidly in the UK. To combat this, the banking industry has turned to Verification of Payee (VoP), a technology designed to ensure that the name on a bank account matches the name entered by the payer before a payment is processed. But as of 2025, many are asking: Is Verification of Payee mandatory for all UK banks?

Let’s break down the current regulatory requirements, industry trends, and what UK banks must do to stay compliant and secure.

Understanding Verification of Payee (VoP)

Verification of Payee is an account name-checking service that aims to reduce fraud and misdirected payments. It allows the payer to confirm whether the payee’s account name matches the name held by the receiving bank before proceeding with the transaction. VoP is most commonly integrated via a Verification of Payee API, allowing real-time validation within online and mobile banking systems.

Is Verification of Payee Mandatory in the UK in 2025?

Yes—Verification of Payee is mandatory for all major UK banks as of 2025, following a phased rollout overseen by the Payment Systems Regulator (PSR). Initially introduced in 2020, the service was first required of the UK’s six largest banking groups. Since then, the mandate has extended to include a broader range of banks, building societies, and payment service providers.

By 2025, the PSR has further strengthened the requirement, ensuring that VoP implementation is compulsory for any bank participating in the Faster Payments and CHAPS networks. This move comes in response to rising fraud numbers and the growing consumer demand for secure payment processes.

What About Non-Bank Institutions?

While not all non-bank payment service providers are required by law to implement VoP, most are strongly encouraged to do so—especially those operating at scale or within high-risk verticals. Working with a reliable Verification of Payee service provider is becoming standard practice, even for fintechs and digital wallets.

Compliance Within Europe

Though this blog focuses on the UK, it’s worth noting that Verification of Payee Europe regulations are also evolving. The EU is following a similar path by encouraging banks and PSPs to adopt name-checking services under its PSD2 and anti-fraud frameworks. While not yet mandatory across all member states, momentum is building.

Challenges and the Role of VoP Providers

Many UK banks and fintech firms face technical challenges when integrating VoP—especially those with legacy systems. This is where choosing the right Verification of Payee provider becomes critical. A good provider offers scalable Verification of Payee APIs, fast response times, and robust matching algorithms that minimize false positives.

TechnoXander, for example, is one such provider helping institutions streamline VoP implementation while maintaining compliance and improving user trust.

Final Thoughts

To sum up, Verification of Payee (VoP) is no longer optional for UK banks in 2025. It is a regulatory requirement and a critical component of any secure payment ecosystem. As fraud becomes more sophisticated, banks must adopt proven fraud-prevention tools like VoP and collaborate with trusted Verification of Payee service providers to protect their customers and reputations.

If your institution hasn’t yet adopted VoP, now is the time to act.