BORICA has officially become the first and only Bulgarian provider registered in the public register of the European Payments Council (EPC), following the completion of registration and technical compliance procedures. This milestone positions Bulgaria alongside technologically advanced European markets where online transfers are secured by verifying that the IBAN and the recipient’s name match. The initiative is also a step toward creating a comprehensive analytical framework to prevent financial fraud in instant payments.
The newly introduced “Beneficiary Verification” service, set to launch in Bulgaria in October 2025, targets one of the most common forms of online fraud – Authorised Push Payment (APP) scams – where users, often deceived, transfer funds directly to fraudsters. According to Vanya Ganeva, Director of Payment Services at BORICA, experiences in other European countries indicate that proper implementation of such a service can reduce cases of online transfer fraud by over 70%, particularly protecting vulnerable user groups.
The service operates on a pre-validation principle: as users enter the IBAN and recipient name, the system instantly checks for a match with the account holder. This allows for detection of discrepancies before the transfer is confirmed, helping to prevent errors, fraud, and potential legal issues. European Commission data indicates that APP fraud causes annual losses exceeding 1.5 billion euros, with hundreds of cases reported in Bulgaria in 2024 alone, including one fraud totaling 10 million dollars.
Under the new Instant Payments Regulation (IPR), the “Beneficiary Verification” service will be mandatory for all SEPA payments – instant and standard – and must be available across all digital banking channels. BORICA, acting as a certified Routing and Verification Mechanism (RVM) provider, offers three integration options that comply with regulatory standards while enabling real-time verification. These options include: checking the match between IBAN and recipient name, providing 24/7 service with a maximum five-second response time, secure communication with other European PSPs and RVM providers, and batch processing capabilities. Additional features allow automatic extraction of BIC from IBAN and storage of data within BORICA’s infrastructure, streamlining regulatory compliance for payment service providers.
A pilot of the service will begin in October 2025, involving one Bulgarian bank and three branches of Bulgarian banks abroad. By the end of 2026, all payment service providers in Bulgaria are required to integrate the service across their channels. Vanya Ganeva emphasizes that BORICA’s role is to ensure security and regulatory compliance while making the transition seamless for financial institutions, allowing them to focus on serving customers effectively.
With the launch of “Recipient Verification,” Bulgaria is taking a crucial step toward a safer and more transparent payment environment. The service not only protects consumers and businesses from fraud but also reinforces Bulgaria’s position as a trusted and active participant in the European financial system, enhancing confidence in digital payments and supporting the sustainable growth of the country’s payment services in the coming years.