WHAT IS REQUEST TO PAY?

Request to Pay (RTP), also known as payment request, is an innovative payment service that facilitates the billing and payment process for businesses and individuals. It allows the creditor to send a payment request to the payer, typically in the form of an electronic message, containing all the necessary information such as the amount to be paid, the associated invoice, and transfer details. As it is not a standalone payment solution, it needs to be associated with one, such as the payment link offered by Market Pay, enabling the debtor to access new payment methods to make the payment.

HOW DOES THE REQUEST TO PAY SYSTEM WORK?

Firstly, the creditor sends a payment request to the payer via an electronic message containing all the necessary information, such as the amount to be paid and invoice details.

The RTP uses the SEPA (Single Euro Payments Area) payment system to ensure the security and reliability of transactions. Once the payer receives the payment request, they have the option to initiate the payment by making an instant transfer using electronic means, such as online banking services. The transfer is executed using the data provided in the payment request.

WHAT IS THE VALUE ADDITION FOR YOUR BUSINESS?

One of the main advantages of RTP is the speed of payments. The payer can make an instant transfer using available electronic means, such as online banking services. This reduces invoice collection times and improves the company's cash flow management.

Moreover, RTP streamlines the payment journey for the customer by providing a direct link to the invoice, eliminating the need for manual input of payment details. This increased convenience promotes the adoption of RTP by businesses and customers.

The deployment of RTP is facilitated by the establishment of standards such as the SEPA Request to Pay (SRTP) standard in collaboration with the European Payments Council (EPC), making its adoption easier.

CHOOSING REQUEST TO PAY FOR YOUR ONLINE TRANSACTIONS

Firstly, RTP eliminates obstacles related to manually entering payment information, reducing errors and potential frictions in the payment process.

For your customers, RTP simplifies their payment experience by providing a direct link to the invoice and enabling them to make payments quickly and securely. This improves satisfaction rates and reinforces trust in the online payment process.

THE DIFFERENCE BETWEEN REQUEST TO PAY AND PAYMENT INITIATION

Request to Pay (RTP) and payment initiation are two related but distinct concepts in the field of financial transactions. Here are their main differences:

  1. RTP aims to request a payment from a payer, while payment initiation concerns the action of actually initiating the payment process itself.
  2. In RTP, the creditor issues a payment request to the payer, asking them to settle an invoice or transaction. In contrast, payment initiation is performed by the payer themselves to initiate the transfer or payment.
  3. RTP involves exchanging information regarding the invoice, payment details, and instructions between the creditor and the payer. Payment initiation primarily involves sending payment data by the payer, such as the amount to be paid, bank details, etc.
  4. In RTP, the payer receives a payment request, but they retain the final decision on whether to initiate the payment. On the other hand, during payment initiation, the payer takes responsibility for triggering the payment by making the transfer.

It is essential to understand that Request to Pay is not a payment method itself and must be coupled with a solution like Market Pay's instant bank transfer Pay by Bank.

INTEGRATING REQUEST TO PAY INTO THE PAYMENT SYSTEM

At Market Pay, we are capable of providing you with a comprehensive Request to Pay offering, paired with our simplified bank transfer solution, Pay by Bank.

WHAT ARE THE DIFFERENT USE CASES POSSIBLE?

Request to Pay offers a variety of use cases in financial transactions. Here are some examples:

  1. Business Invoicing: Businesses can use RTP to send invoices to their clients. The creditor sends an electronic payment request with all the necessary details, including the amount due, due date, and bank details. The client can then make the payment easily.
  2. Refunds and Rebates: Still within the realm of business invoicing, RTP can also be used for refund and rebate requests. For example, a company can send a refund request to a customer for a returned item or a granted discount. The customer can then authorize the payment by responding to the payment request.
  3. Utility Payments: Utility service providers can use RTP to allow customers to settle their water, electricity, gas, etc., bills. Customers receive a payment request that they can quickly validate and execute.
  4. Inter-Business Payments: Companies can use RTP to facilitate payments between each other. For instance, when one company provides goods or services to another company, they can send a payment request to request the settlement.