Six Luxembourg banks select LUXHUB as Voice-over-IP service provider
Luxembourg, 1st April — Six major banks in Luxembourg have chosen LUXHUB's 'Payee Verification Platform' as their solution for Verification of Payee (VoP) and routing and verification mechanism (RVM). The banks, which represent a significant portion of bank accounts in Luxembourg, aim to ensure secure credit transfers for their personal and corporate clients.
The platform, developed by LUXHUB — a company founded by four major banks in Luxembourg — provides a real-time name and account-matching service for payment service providers (PSPs) to comply with the regulatory obligation. This service is crucial as it helps PSPs manage VoP securely and compliantly, in line with the EU's Instant Payments Regulation.
Claude Meurisse, CEO of LUXHUB, has welcomed the six banks to the 'Payee Verification Platform'. He stated that LUXHUB, as an Open Finance and RegTech expert, has demonstrated its pioneering status by developing a powerful platform and matching algorithm for IBANs and names.
The 'Payee Verification Platform' offers a unified access point for payers' PSPs to access the verification service made available by the payee's PSPs. This means that verification must be conducted immediately after the payer provides relevant information about the payee and before the payer is offered the possibility of authorizing the credit transfer.
The adoption of LUXHUB's platform by the six banks is a significant step towards enhancing payment security in Luxembourg. The EU's Instant Payments Regulation mandates VoP for cross-border payments within the Single European Payment Area (SEPA) by 9 October 2025. This regulation requires PSPs to offer VoP as a free service to customers, aiming to verify that the payee’s name and IBAN match before completing a transaction, thereby reducing fraud and errors.
The implementation of VoP also supports anti-fraud and Anti-Money Laundering (AML) efforts, reinforcing Luxembourg’s position in harmonizing secure instant payments with EU-wide AML frameworks. PSPs in Luxembourg will need to prepare their infrastructure to handle new API demands, transaction volumes, and auditing obligations to demonstrate that verification attempts have been made and recorded properly.
Moreover, PSPs must integrate with the EPC Directory Service (EDS), which facilitates validated payee data exchange and real-time verification system interoperability. This ensures seamless VoP checks across borders, important for Luxembourg as a financial hub.
In conclusion, the Instant Payments Regulation imposes a binding deadline for Luxembourg PSPs to deploy VoP solutions, driving a fundamental upgrade in payment security by verifying payees upfront. This aligns Luxembourg with the broader SEPA ambition to enable faster, safer, and fraud-resistant instant payments by October 2025.
[1] EU Instant Payments Regulation: https://ec.europa.eu/info/publications/instant-payments-regulation_en [2] EPC Directory Service: https://www.epc-cashless.org/services/epc-directory-service/ [3] EPC Instant Payments: https://www.epc-cashless.org/services/instant-payments/ [4] LUXHUB: https://www.luxhub.lu/en/ [5] AML/CFT Regulation: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12425-Anti-Money-Laundering-and-Terrorist-Financing-Regulation
- The 'Payee Verification Platform' by LUXHUB, a fintech company based in Luxembourg, will ensure secure and compliant credit transfers for personal and corporate clients by providing a real-time name and account-matching service for payment service providers (PSPs), helping them meet regulatory obligations under the EU's Instant Payments Regulation.
- The platform developed by LUXHUB, a pioneer in Open Finance and RegTech, offers a unified access point for payers' PSPs, allowing them to access the verification service made available by the payee's PSPs, thus ensuring secure and compliant Verification of Payee (VoP) in line with the EU's Instant Payments Regulation.
- The adoption of LUXHUB's platform by six major banks in Luxembourg marks a significant milestone towards enhancing the country's payments infrastructure, as it aligns with the EU's Instant Payments Regulation's requirements for VoP for cross-border payments within the Single European Payment Area (SEPA) by 9 October 2025.
- PSPs in Luxembourg, with the implementation of VoP, will not only ensure the security and compliance of their payments but also support anti-fraud and Anti-Money Laundering (AML) efforts, thereby reinforcing Luxembourg's position as a hub for secure instant payments and harmonizing it with EU-wide AML frameworks.
