Request to Pay – door opener for innovations

The new European Request to Pay (RTP) standard for payment requests bridges the gap between invoicing and payment. This enables digital payment processes that are completely free of media discontinuities. The first set of rules on this came into force on 15 June 2021, and a lot has happened since then – most notably: PAYCY, the white-label platform for financial institutions to create payment requests in real time from an invoice. The process is based on the Europe-wide standard Request to Pay.

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Versatile, user-friendly, digital

Four-corner model of Request to Pay
Four-corner model of Request to Pay
Functional overview of Request to Pay
RTP is characterised by an extremely high level of transparency; the payment status can be called up at any time

In mid-2021, the SEPA Request to Pay (RTP) Scheme Rulebook came into force as the first rulebook that can be used for pan-European payment requests. It has the potential to change the European payments market in the long term. After all, Request to Pay is not just another procedure or format, but RTP enables many payment processes to be more streamlined, efficient and user-friendly. Not least in combination with SEPA instant payments a number of new application scenarios arise, for example in retail payments directly at the point of sale or in the digital transfers between private individuals, so-called peer-to-peer payments (P2P payments). Thus the need for cash becomes obsolete and the funds are still transferred to the right place in just a few seconds.

Simple basic principle

The invoicing party sends a digital payment request to the payer, which contains all the necessary data in the corresponding standardised format. Payers can transfer this data to their banking application with one click, so that the transfer then only needs to be authorised. Payment recipients can agree with their financial institution to receive a notification immediately upon acceptance of the RTP or upon receipt of funds.

Best market opportunities

So far, there are no established RTP solutions or big players on the market. Financial institutions and financial service providers should thus quickly make a fundamental decision about adding RTP services to their portfolios to use this potential. The integration of an appropriate future-oriented solution can bring visible success in terms of own market position and customer loyalty in a timely manner. Target group-focused solutions around RTP give financial institutions a noticeable edge in competition with FinTechs.

Both sides benefit

The entire payment process becomes quicker, simpler and less prone to error. The good thing for companies is that end-to-end digital invoicing processes save money. Depending on the number of invoices, this can quickly add up to millions. Small and medium-sized enterprises – previously more or less excluded from the few existing e-billing systems due to the costs – can finally benefit from the digital transformation in accounting. But there are also many advantages for the consumer: tedious transfer errors are no longer possible, the release of each individual payment increases transparency and even more payment methods may be available in the future.

Request to Pay and the integration in TRAVIC-Payment Hub – quickly explained

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Eric Waller PPI AG

Eric Waller

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Rebecca Stannull PPI AG

Rebecca Stannull

Managing Consultant

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