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Verified payments innovation: why Nordic banks need to think beyond VoP compliance
The impending arrival of Verification of Payee (VoP), a key pillar of the EU’s Instant Payments Regulation, represents a pivotal moment for Nordic banks operating within the SEPA framework.
On the one hand, there are the immediate considerations around compliance. But on the other, a more strategic question arises: how can Nordic banks make the most of this regulatory shift, and the broader evolution of payments, to not only ensure adherence but also to gain significant commercial advantages?
Financial services professionals looking for the answer are very likely to find it during discussions at this year’s NextGen Nordics conference in Stockholm, Sweden, on April 29.
To prime delegates ahead of this important regional gathering, Iliad Solutions’ global payments testing and certification experts have shared the following thoughts…
Strategic payments testing: a vital component in VoP adoption
The introduction of VoP and the broader evolution of SEPA payments demand an approach to testing and certification that goes beyond ticking regulatory boxes.
Drawing on our experience in developing testing tools for SEPA products, it’s clear that the architects of the pan-European network are committed to building internationally renowned modern payments experiences.
Therefore, banks and other payment providers should remain poised to quickly capitalise on any evolutions in the system. This involves looking at testing and certification through a strategic lens. That is, if you want to ensure the seamless integration of new functionalities into existing infrastructure, minimise disruption and build a foundation for future innovation.
Additionally, a more considered, holistic approach to payments testing offers numerous commercial and operational benefits.
Firstly, it significantly accelerates speed to market for new payment products and services. Delays caused by inadequate testing can lead to missed opportunities and allow peers and rivals to gain an advantage.
However, rigorous testing ensures that new offerings are launched with confidence and efficiency, allowing banks to realise a quicker return on their investment. In today’s competitive marketplace, the ability to rapidly deploy innovative solutions is paramount.
Secondly, thorough testing plays a vital role in minimising costly downtime. To put this into perspective, recent analyses showed UK banks and building societies experienced more than 800 hours of service downtime between 2023 and 2025.
The financial impact was huge, with some institutions paying out millions of pounds in compensation, while facing significant reputational damage and erosion of customer trust.
But by proactively identifying and mitigating potential system failures through comprehensive payment testing, banks can safeguard their operations and protect their bottom line. This is particularly crucial when implementing significant changes like VoP, which touches critical payment flows.
From compliance to commercial advantage: achieving ROI on payments innovation
The strategic application of payments testing and certification transforms these essential processes from mere compliance exercises into engines of innovation, which empower Nordic banks to build greater trust and loyalty among consumers and business users.
On top of this, efficient testing and certification reduce friction when it comes to the onboarding of new clients and the rollout of new services. When payment systems are robust and perform flawlessly, customer adoption accelerates. And this, in turn, leads to increased transaction volumes and a positive impact on the bank’s financial performance.
In conclusion, the evolution of payments in the Nordics, with the introduction of Verification of Payee, creates an imperative for banks to adopt a strategic posture on product testing.
It’s a proven way for financial institutions to meet regulatory requirements and modernise with confidence – resulting in real-time digital payments propositions that go beyond basic compliance to achieve tangible commercial gains
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