When a payment fails, the cause is sometimes deceptively simple. The money is ready to move, but the name doesn’t match. The sender misspelled the beneficiary’s name or accidentally used a nickname. Now, the payment is stuck in a repair queue while the treasurer waits, wondering what went wrong.
Verification of payee (VoP) is the guardrail designed to catch these types of failures before a payment is sent. As a payment goes out, the sending bank compares the beneficiary’s name with the destination account and returns either a match, a partial match, or no match. This all happens in real time before any money movement.
The cross-border verification gap: Why domestic VoP isn’t enough
VoP is fairly simple within a single country or currency zone. Cross-border payments, however, introduce new challenges.
A bank in one market can verify a beneficiary at another bank in that same market instantaneously. The moment a payment crosses into a market without an equivalent verification scheme — or a different one altogether — the verification layer disappears. That also means the compliance burden shifts back onto the sending institution to manage on its own.
What is authorized push payment fraud — and why is it growing?
The cross-border verification gap is more important than ever in part due to the pace at which fraud occurs today.
Damien Dugauquier co-founded fintech iPiD after a long tenure at Swift. In a recent appearance on the Converge podcast, he described the landscape like this: faster payments increasingly mean faster fraud.
Authorized push payment (APP) scams, when someone is tricked into authorizing a payment to an account that isn’t who they think it is, have scaled alongside instant payment rails. In 2026, APP is a growing concern for compliance teams combating and preventing B2B payment fraud.
How know your payee (KYP) extends verification beyond borders
iPiD’s answer to the problem is what Dugauquier calls know-your-payee (KYP), or verification that follows the payment instead of stopping at a border.
The company, founded by three former Swift colleagues, built what it describes as a universal account verification layer that pre-validates domestic payments, cross-border payments, and, increasingly, stablecoin and digital asset transfers.
To the iPiD team, the solution is urgent. Payments are moving faster, and this speed requires modernized safety controls.
The “green tick”: What real-time beneficiary verification looks like in practice
For Dugauquier and the iPiD team, the essential feature of KYP is timing. Verification needs to happen while the payer enters the beneficiary’s details, not after the payment has already been sent.
A real-time “green tick” gives the payer confidence to proceed, while a warning prompts them to stop and double-check before money moves. If verification is bolted on after the fact, however, a customer may get a phone call days later, and the entire process will be stalled.
Convera has deployed iPiD’s verification across European payment flows, and the results are already clear. As Principal Product Manager Akash Patel notes, match rates are above 92%, with customers continuing to book transactions whether they get a match or a no-match — illustrating how exposing checks builds trust in itself.
For financial institutions, Convera has seen failed payment rates and customer support queries each drop by roughly half.
Where there are still gaps: The vision for universal payment validation
In the EU, VoP is mandatory for all euro-based instant and standard SEPA transfers since October 9, 2025. The security procedure will become mandatory for non-euro EU countries on July 9, 2027.
However, according to Dugauquier, several major markets — including the US, Canada, and the Philippines — still lack reliable domestic verification coverage, although regulation is beginning to catch up. Stablecoin wallets are next on iPiD’s list, aiming to streamline and standardize verification for all payments regardless of which rail they live on.
For many players in the cross-border payments space, there’s a common end goal: every payment, on every rail, is verified before it’s sent. Cross-border verification with iPiD is a key piece toward getting there.
Listen to the full interview and explore the future of payee verification.
