Verification of Payee: should PSPs select a RVM solution or build In-House?

Arthur Legourd - QomboArthur Legourd | Updated on 1/17/2025 | 3 min read

For payment service providers (PSPs), implementing a VoP system in 2025 requires a critical decision: should they opt for a Routing and Verification Mechanism solution (RVM) or invest in building their own in-house system?

In this article, we will explore both options to help PSPs make an informed decision based on their unique needs and constraints.

Understanding VoP

VoP is a process that validates the alignment between the name of the payee and their bank account details. This layer of verification is instrumental in preventing fraud such as Authorized Push Payment (APP) scams and ensuring compliance with the Instant Payment Regulation.

Comparing RVM solutions and In-House development

Routing & Verification Mechanism: Advantages and considerations

  1. Quick implementation Software editors provide ready-to-deploy solutions, enabling PSPs to integrate VoP capabilities swiftly. This significantly reduces time-to-market compared to building a system from scratch.
  2. Regulatory compliance Established vendors often ensure that their solutions adhere to the latest regulatory standards and incorporate privacy-by-design principles, easing the compliance burden for PSPs.
  3. Cost efficiency By leveraging economies of scale, vendors distribute development and maintenance costs across their customer base. This makes RVM solutions more affordable for many PSPs.
  4. Proven expertise Vendors typically specialize in VoP, offering robust anti-fraud features driven by collective intelligence and solutions that minimize false positives and negatives, ensuring a high level of reliability.
  5. Continuous updates Fraud trends and regulations evolve rapidly. RVMs provide ongoing updates to keep their systems effective and compliant.
  6. Customer support Dedicated support teams help resolve issues quickly, reducing downtime and enhancing the overall user experience.

In-House development: benefits and challenges

Benefits:

  1. Full customization An in-house solution allows PSPs to tailor the system to their specific workflows, business models, and customer needs.
  2. Control and ownership Building a proprietary system gives PSPs complete control over their data, infrastructure, and technology roadmap.

Challenges:

  1. Time-intensive development Creating a reliable VoP system requires substantial investment in time, resources, and expertise, potentially delaying implementation while the market is still very new and unprepared.
  2. Regulatory complexity Ensuring ongoing compliance with dynamic regulatory requirements demands specialized knowledge and constant monitoring.
  3. Accuracy and liability Developing matching algorithms to minimize false positives and negatives is a complex process that takes a lot of time and carries a risk of errors.
  4. High maintenance costs Over time, updating, scaling, and maintaining an in-house solution can become a costly and resource-intensive endeavor.

Key Considerations for PSPs

When choosing between a Routing & Verification Mechanism solution and an in-house system, PSPs should evaluate:

  • Budget and resources: Can your organization allocate the necessary resources for in-house development, or would a cost-effective SaaS solution be more viable?
  • Time-to-market: How quickly do you need to implement a VoP system to meet market or regulatory demands? Is your internal IT team able to commit on October’s 2025 deadline?
  • Expertise: Do you have the technical expertise to build and maintain a reliable, compliant system?
  • Long-term goals: Is full ownership of the system crucial to your strategic objectives, or are you seeking a flexible, scalable solution?

Conclusion

Both RVM and in-house VoP solutions offer distinct advantages and challenges. A RVM is often faster and more cost-effective, with built-in compliance and ongoing support. Conversely, an in-house system provides greater customization and control but requires significant investment and expertise.


Ultimately, the decision hinges on your organization’s specific priorities, capabilities, and long-term strategy. By carefully weighing these factors, PSPs can select the path that best aligns with their operational goals and customer expectations.

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