Six Luxembourg Banks Choose LUXHUB for Payee Verification Ahead of EU Mandate

Six major banks in Luxembourg have selected LUXHUB’s platform to handle payee verification, a move that will help them comply with new European regulations set to take effect by October 9, 2025. This regulation requires all Payment Service Providers (PSPs) to verify recipient details—such as the name or business identifier—before processing any SEPA credit transfer, whether instant or standard. The aim is to ensure that the payee’s information matches the account details provided by the payer, regardless of how the payment is initiated.

How LUXHUB’s Platform Works

LUXHUB’s solution is designed to serve both Verification of Payee (VOP) and Routing and Verification Mechanism (RVM) functions. It operates as both a Responding and Requesting RVM under the European Payments Council’s VOP Scheme. The platform offers two main services:

• A secure system for PSPs to provide real-time name-account matching
• A unified access point for payer-side PSPs to reach participating payee-side providers

This setup allows for instant verification and helps prevent errors or fraud in payment transfers. With the addition of these six banks, most account holders in Luxembourg—both retail and corporate—will benefit from a consistent and secure verification process.

Why This Matters for Banks and Customers

The new regulation means banks must be able to respond to verification requests from other institutions in real time. LUXHUB’s platform is mutualised, so as more PSPs join, the network becomes stronger and more efficient. By following the VOP Scheme Rulebook and API specifications, the platform ensures compliance and interoperability across the EU.

For customers, this means greater security and fewer payment errors. For banks, it’s a way to meet regulatory requirements and offer a smoother, safer payment experience.

What’s Next?

With less than seven months before the deadline, banks and PSPs are encouraged to start integration projects as soon as possible. Early adoption will help institutions onboard clients gradually and get everyone comfortable with the new payment flow. LUXHUB is also in talks with other providers to expand the platform’s reach, aiming for secure and verified transfers throughout the European financial ecosystem.

---

Join the online network for expats in Luxembourg, sign up free luxembourgexpats.lu