Payee Name Checks Now Free on SEPA Transfers
Euro-area payment providers have offered free payee name verification for SEPA transfers since October 9, 2025, including for crypto customers.
Updated on Nov. 1, 2026 in Financial Services
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Since October 9, 2025, euro-area payment providers have offered free payee name verification for eligible SEPA payments, including those made by crypto customers. The check compares the recipient name a payer enters with the name associated with the IBAN before authorization.
Why it matters
The check is designed to reduce misdirected or fraudulent transfers by flagging mismatches before money leaves an account. Because a warning does not automatically block a payment, the final decision still rests with the payer.
A survey of 1,030 German online-banking users conducted August 3-9, 2026 found 91% supported the check in principle, while 27% rated its implementation poorly. Among respondents who saw a warning in the previous six months, 58% reported warnings on roughly a quarter or more of their transfers.
The players
Kraken
Kraken is a cryptocurrency exchange whose Banking Circle option gives customers a dedicated bank account in their own name for SEPA and SEPA Instant transfers.
Banking Circle
Banking Circle is a European bank that provides payment infrastructure, including dedicated accounts used by crypto platforms for SEPA transfers.
The details
Payee name verification applies when crypto customers use eligible SEPA payments and returns one of four results: match, close match, no match, or a note that verification was not possible. The check concerns the account tied to the IBAN rather than whether the name matches a crypto platform's brand, and Kraken's Banking Circle option assigns customers a dedicated account in their own name for SEPA transfers.
Timeline
January 9, 2025: Euro-area banks were required to begin receiving instant payments.
October 9, 2025: Free payee name verification began and banks were required to send instant payments.
August 3-9, 2026: A survey of 1,030 German online-banking users was conducted.
July 9, 2027: Payment providers in EU countries outside the euro area must offer payee verification.
Market Landscape
The payee verification requirement was introduced under the EU Instant Payments Regulation, which first required euro-area banks to receive instant payments by January 9, 2025 and send them by October 9, 2025. Payment providers in EU countries outside the euro area have until July 9, 2027 to offer the same check.
Customers sending SEPA transfers, including those funding crypto accounts, may now see a warning before authorizing a payment if the recipient name does not match the IBAN. The warning does not block the transfer, so payers can review the details and decide whether to proceed.
The takeaway
Double-check the recipient's name against the account details before confirming any SEPA transfer, especially to a crypto platform. A mismatch warning is a prompt to verify, not an automatic block.
What happens next
Payment providers in EU countries outside the euro area must offer payee name verification by July 9, 2027.
Further reading
For broader context on how these rules fit into the sector, see Financial Services coverage.
Source note: This article includes information reported by TokenPost.
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