The EU’s Instant Payments Regulation is reshaping the financial landscape at record speed. By late 2025, every bank and payment service provider in the eurozone must be able to receive instant payments, and by early 2026, they must be able to send them. On paper, this sounds like progress: faster, cheaper, safer payments for all. In practice, the rapid timeline is creating strain across the industry.
Not every player in the payments ecosystem is ready for this shift. Many banks still operate on legacy infrastructure, not built for real-time, round-the-clock processing. For them, upgrading systems to handle instant payments, fraud checks, and sanctions screening within seconds is a massive task.
Vendors face a similar challenge. Some are rushing to bolt instant-payment functionality onto old platforms, creating patchwork solutions that may not scale or stand up to regulatory scrutiny. Corporates, meanwhile, are caught in the middle. Treasury teams must adapt their workflows, manage liquidity in real time, and—critically—ensure that their master data is accurate.
The risk is clear: if corporates and banks aren’t fully prepared, they may be tempted to look for “opt-outs” or backdoors in the regulation to buy more time. But regulators have made it clear: there is no going back. Instant payments and Verification of Payee (VoP) are here to stay.
The Directive doesn’t just mandate instant payments—it makes Verification of Payee mandatory. That means before a transfer is processed, the account name must be checked against the IBAN, and mismatches must trigger a warning.
This sounds simple, but the operational impact is huge:
Master data checks: Supplier or employee data in ERP systems is often outdated or incomplete. Without validation, errors flow directly into payment files.
Bulk payments: Payroll runs or supplier batches can contain thousands of transactions. A single wrong IBAN can trigger costly disruptions.
Single payments: High-value individual transfers are prime targets for fraudsters. Without VoP, they’re vulnerable.
Address book management: Corporate payment address books are rarely reviewed systematically. Old or incorrect details increase risk with every transaction.
For banks and corporates, this is where the regulation bites hardest. Without strong VoP tools, the risk of fraud, error, or compliance failure grows.
The regulation is coming fast, and not everyone is ready. But the answer isn’t to delay or to water down compliance. The answer is to adopt solutions that make instant payments both safe and sustainable.
For corporates, this isn’t just about checking a regulatory box. It’s about safeguarding payroll, protecting supplier relationships, and keeping treasury operations running smoothly. For banks, it’s about maintaining customer trust in an environment where money moves in seconds.
Cobase’s role is to provide the tools to make this transition possible—helping clients stay compliant, avoid backdoors, and operate securely in the new real-time payments world.
Conclusion
The pressure is real. The Instant Payments Directive is forcing banks, vendors, and corporates to modernize faster than many expected. But cutting corners isn’t an option. With Verification of Payee built into every step of the payment process—master data, bulk files, single transfers, and address books—Cobase ensures clients stay both compliant and protected.
Instant payments are becoming the standard. The real question is: will your systems, data, and processes be ready? With the right solutions, the answer can be yes—without compromise.
Want to find out what Cobase can do for you?
At Cobase, we view VoP not as a burden, but as a strategic enabler of trust and efficiency. Our platform integrates VoP seamlessly across the payment lifecycle, helping corporates stay compliant, reduce errors, and protect against fraud:
Master data checks – Validate supplier and employee details directly from your ERP through Cobase, catching errors before payments are even created.
Bulk payments – Run VoP checks across payroll or supplier batches, validating thousands of lines before execution.
Single payments – Apply real-time VoP to SEPA transactions executed within the Cobase platform.
Address book validation – Keep your beneficiary records clean by flagging outdated or incorrect details.
By embedding these safeguards into your operations, Cobase ensures your organization can embrace instant payments with confidence, compliance, and control without shortcuts or regulatory risk.
1. What is the Instant Payments Directive?
The Instant Payments Directive (also called the Instant Payments Regulation) is new EU legislation that makes instant payments mandatory across the euro area. By late 2025, all banks and payment service providers holding euro accounts must be able to send and receive instant transfers 24/7.
2. Why were instant payments not widely available before?
Although SEPA Instant Credit Transfers (SCT Inst) were introduced in 2017, participation was optional. Some banks adopted the scheme quickly, but many did not. As a result, instant payments were common in some countries but almost unavailable in others.
3. How does Verification of Payee (VoP) work?
Verification of Payee checks whether the name of the beneficiary matches the IBAN before a transfer is processed. If there’s a mismatch, the sender is warned. This helps reduce fraud and prevents costly errors before the payment leaves the account.
4. What risks do corporates face with instant payments?
Instant transfers are irreversible. Errors in supplier details, outdated employee data, or fraud attempts can cause money to be lost in seconds. Without accurate master data and fraud-prevention controls, corporates are more exposed to risk than with traditional, slower payments.
5. How should businesses prepare for instant payments?
Corporates need to ensure their payment processes, ERP data, and fraud controls are ready for a real-time environment. This means cleaning up master data, implementing strong verification measures, and adopting technology that supports instant and secure payment flows.