David Crawford, Chief Strategy and Product Officer at Pay.UK
The digital age has brought unprecedented speed and convenience to payments, but with it, a darker shadow: a surge of payment fraud that impacts economies around the world. This isn’t just a nuisance; it’s a multi-billion-pound problem that touches businesses and consumers alike. So, how do we combat fraud that moves at such pace, without stifling the very innovation that makes instant payments so valuable?
The answer increasingly lies in implementing robust prevention tools to stay one step ahead of fraudsters. And in this global battle, the UK’s Confirmation of Payee (CoP) account name-checking service has emerged as a notable example of effective fraud mitigation that has subsequently served as an inspiration to others facing similar challenges.
The European Payments Council (EPC) is among the latest of these players to have developed a similar initiative with its Verification of Payee (VoP) service set to be rolled out across Europe from October 2025.
A blueprint for success: The UK’s CoP journey
Launched by Pay.UK in 2020, CoP’s premise was simple yet powerful: ensuring that the name on the payment matches the name on the account to prevent misdirected payments. The effectiveness of the overlay was quickly recognised, as was its ability to also reduce instances of authorised push payment fraud. The service has since continuously expanded and refined its core functionality, revealing use cases beyond its initial scope of traditional payments. Indeed, Pay.UK is now looking to expand CoP’s role in reducing misdirected payments, for example as part of payroll, insurance payouts, or Direct Debit set ups. This organic evolution has inherently created a wealth of invaluable insight and experience that can now help inform the development and implementation of similar tools around the world.
Cross-border collaboration: When Europe came calling
Recognising CoP’s efficacy in combating fraud within the UK’s instant payment ecosystem, the EPC didn’t just observe from afar when developing its own solution. The Council actively sought insights from Pay.UK, which developed into practical collaboration driven by the urgent need to bolster security in an increasingly interconnected financial landscape.
Through regular engagement activity, such as dedicated workshops and the open exchange of operational details, the UK provided Europe with key information from the journey of CoP in the UK to help inform VoP. Sharing lessons and insight on critical aspects including payment service provider readiness, navigating operational complexities, and avoiding pitfalls, this open and transparent approach directly guided the development of VoP, further serving as a stellar example of effective UK-EU collaboration in the ongoing effort to combat fraud.
The road ahead: Towards international interoperability
While CoP and VoP exhibit some differences in their scope of checks, including approaches to bulk payment handling and underlying banking structures, their fundamental models share a remarkable degree of similarity.
This alignment isn’t just a coincidence; it’s a conscious, strategic advantage that opens a promising pathway towards eventual interoperability. Indeed, Pay.UK is exploring the potential of an ‘international CoP’ – a seamless, cross-border name-checking system. Such a service would become an invaluable tool in the global fight against financial crime, addressing a challenge that remains a key strategic objective for governments and payment system operators worldwide. The ability to verify payee details across borders would add a crucial layer of defence, making it significantly harder for fraudsters to exploit geographical boundaries.
A blueprint for a safer future
The UK’s contribution to the EPC’s VoP initiative serves as a powerful example of how practical, cross-border knowledge sharing can significantly enhance global payment security. This collaboration not only serves as testament to the UK’s position as a leader in the development and implementation of secure payment systems, but also underscores the indispensable role of international cooperation in safeguarding the integrity of our financial ecosystem.
As financial services become increasingly digital and interconnected, the lessons learned from CoP, and its profound influence on VoP, offer a compelling blueprint for a more secure and resilient future for payments. It’s a future where innovation and security go hand-in-hand in ensuring that the speed of payments remains a benefit, not a vulnerability.
Read More on: UK innovation becomes the European standard: How CoP paved the way for VoP
