Request To Pay: real-time digital payment

In the digital age, payment services are constantly evolving. The objective is to be able to carry out financial operations easily. With this in mind, the European Payments Council created the Request To Pay (RTP). What is it and how could this technology change the payment methods of businesses and individuals?

What does Request to Pay?

The Request To Pay is a newly created digital messaging and payment service scheduled for deployment in 2022. This is a real innovation with instant payments. Already implemented in several European countries, this tool aims to simplify the payment of invoices issued by companies and organizations. It was initiated by the European Payments Council as well as several other private players and is aimed at people who want more flexibility in their financial operations.

The SEPA Request-to-Pay (SRTP) is a service that allows any creditor or beneficiary to request a digital payment. We can use it in different situations. This applies to all commercial payment, bill payment or levy interventions. It is therefore a service that is associated with existing instant payment structures, with their own operating system. The particularity with the SEPA Request To Pay is that the payment initiation is carried out by the beneficiary.

It is possible to combine RTP with a SEPA bank transfer (SCT), as well as with an instant payment (SCT Inst).

Request To Pay: request for payment initiation

How the Request To Pay works

Request To Pay is a real-time payment method in the form of message exchange comparable to Swift. Let’s see how this one works.

The payment initiation request

For a transfer, we usually share the recipient’s personal information on the bank information sheet. The Request To Pay works in reverse. Here, the person or company who is to receive the payment sends a request for payment, and then the payer validates the transaction. For example, a company issues an RTP message with a billing and a payment initiation request. The creditor returns an RTP message validating or refusing this request. If he approves, the transfer will be effective. This process has been part of the digital transformation of corporate payment services for over a decade.

A secure digital payment process from start to finish

Request To Pay (or Payment Request) supports the end-to-end process, as it is based on ISO 20022 standards.

First, the « payer » and the « payee » together initiate a transaction process for a material good or service (physical or online). Secondly, the beneficiary provides the creditor with the necessary information for the transaction such as: the amount, the validity date and the execution of the transaction.

The « payer » is then informed via a notification and must identify himself to his bank. The merchant or the particular then obtains confirmation of acceptance of the PTR and and the bank transaction can be initiated. The « payer’s » bank will therefore initiate an immediate transfer to the beneficiary. It is a simple and fast payment process, established to offer a fluidity in the monetary exchanges.

The advantages of SEPA Request To Pay

The customer has the possibility to use the instant dialogue with the biller. The RTP also gives the possibility to have a good visibility and a perfect control, since every transaction made shows a payment form. This will make it possible to settle either at a specific later date or in a staggered manner.

From a technical point of view, the Request To Pay improves the execution conditions of a classic bank transfer. A beneficial solution for the payment of the rent each month for example. Unlike the transfer by seizure, the latter will serve as a reminder of your monthly obligations. Its flexibility will protect you from any overdraft at your bank, for example if your pay falls late one day. Companies will also have better payment deadlines and cash flow management.

This service replaces the use of checkbooks, cash and mobile terminals and avoids an interchange fee of 0.2% for debit cards and 0.3% for credit cards for each transaction in Europe. For this reason, home-based artisans may also find this method of payment advantageous and less expensive. Using the mobile application, they will be able to send all invoices directly to their customers for secure validation.

The benefits of the Request To Pay service

Take advantage of Request To Pay with our MoneyRoad solution

Among the payment applications that offer the Request To Pay option, MoneyRoad is one of those that guarantee 100% digitalized payment. It allows all its users to digitize, unify and automate their entire billing system, and online electronic invoice collection, including payment negotiations. Designed by French Deeptech StreamMind, this innovative solution aims to streamline and secure the entire payment chain as well as digitizing flows. This is thanks to its powerful tools that allow individuals and businesses to take control of the management of receipts and deadlines.

MoneyRoad has a state-of-the-art interface through which a business can carry out a transaction without the person making the payment necessarily being the owner of the application. It is sufficient that one of the stakeholders is already registered for all the others to be beneficiaries. It also provides a standard framework for negotiation, because once a creditor sends his or her invoice, he or she can provide an opportunity to negotiate payment terms before the electronic invoice is cashed online. This allows for improved visibility on cash flow, while preserving the business relationship.

Another strength of MoneyRoad is the direct link to the banks’ payment and review systems. Indeed, StreamMind is the historical editor of the SEPAmail interbank system. With MoneyRoad, you won’t need to plan ahead.

In practice, we are talking about a universal solution that can be used in various forms (APIs, web interfaces, on smartphones/tablets and PCs). In addition, it does not require installation, licensing, maintenance and subscription costs. Payments are made on a per-use basis.

Finally, MoneyRoad can be used to manage your accounting and create quotes. The invoice templates are customizable (color, logo, currencies, languages, taxes…), and they can be adapted to any SME, as well as to large companies and micro-entrepreneurs.

MoneyRoad integrates all the features and standards defined for banks and businesses. Take advantage now of the Request To Pay service, the new European payment standard that comes into effect on June 15, 2021. Do not hesitate to contact us for any further information or to request a demo.