With the increasing digitalization of the economy and the demand for mobile, digital, and instant payments, Request to Pay has great potential to transform the way in which companies and citizens make their payments in Europe.

Similar to the displacement of traditional credit transfers (where the funds are made available to the beneficiary's account on the next business day or on the same day) by instant credit transfers (with which the funds are instantly credited to the beneficiary’s account and the service is available 24x7), a similar evolution is expected with the arrival of Request to Pay and direct debits. This is because Request to Pay can be regarded as an instant, digital direct debit. Available 24 hours a day, every day of the year (24x7), with no prior mandate required.

Request to Pay is one more example of the revolution and digitalization that the payment industry is experiencing. With its pioneering implementation in Spain, the banking industry is demonstrating once again its leadership in Europe and its commitment to promoting instant digital payments and to improving the customers’ payment experience.

This form of “pull”-type payment (process initiated by the beneficiary) is the piece that complements instant credit transfers, “push”-type payments (initiated by the payer), to achieve the full potential of the instant payments. It is expected that Request to Pay may soon become a powerful and effective channel to initiate payments in real-time by companies, citizens, businesses, organizations, administrations, bank, acquirers and issuers of invoices.

Understanding the use of Request to Pay

Request to Pay is ideal for any citizen who wishes to request a payment from another person, or for any type of company that wants to facilitate payments for the products or services it provides. Request to Pay offers special and important benefits for some use cases, such as: for B2C payments when contracting a service or purchasing a product, for B2B payments between companies and for those payments to Public Administrations.

Request to Pay for business to consumer (B2C)

The flexibility and convenience provided by Request to Pay contribute to an excellent payment experience for both companies and their customers.

With Request to Pay, companies can boost and streamline invoice collection processes from their clients, sending them personalized payment requests and incorporating complete information on the service provided through digital channels, such as mobile applications or online platforms, receiving the final payment instantly and 24x7. The client has the option to check and validate the information included in the Request to Pay and based on this, accept it or, where appropriate, reject it, indicating the reason.

Since the payment of the amount to the beneficiary’s account is availably instantly and is in operation 24x7, it allows real-time monitoring and tracking of payments and collections from clients (successful, pending payment, in the recovery process, etc) being able to plan and allocate financial resources with greater precision, reducing uncertainties and improving control of financial flow.

Other advantages of Request to Pay for B2C businesses are:

• Fast, online and direct communication between companies and their clients.
• Sending personalized and contextualized requests.
• Possibility of offering flexible payment options.
• Online reception of the client’s response 24x7.
• Strengthening customer commitment and building trust.

By issuing the electronic invoices through the Request to Pay and collecting them instantly, the online reconciliation of business collections and payments is also simplified, with a real-time visibility of the payment status and cash flow.

Another point to note is that Request to Pay enables the possibility oof embedded payments. Companies can incorporate their collections and payments into their respective business processes, anticipating treasury needs or surplus automatically.

Other Request to Pay advantages for B2B business are:

• Quick initiation of the payment 24x7.
• Funds available instantly.
• Instant and precise payment reconciliation.
• Ability to set custom payment terms and options.
• Very significant improvement in efficiency and cost savings.
• Secure and transparent payment environment.

Request to Pay for the Public Administration

Request to Pay also represents a very effective and standardized solution to facilitate payments by citizens and companies with Public Administrations (Governments, Autonomous Communities, City Councils, Public Organizations, etc.). Its payment experience contributes to a more efficient and citizen-centred payment ecosystem.

The use of Request to Pay could replace certain manual and inefficient payment methods, such as cash or over-the-counter payments. It can also streamline the multiple different payment methods offered by public administrations under a common standard payment method for public services, taxes, fees or fines, licenses, permits, etc.

By sending payment requests directly to citizens and businesses, public organisms can simplify their collection processes, reduce administrative expenses, and minimize errors or delays in the collections.

Boosting Request to Pay

The European Payments Council (EPC) launched the SEPA Request to Pay (SRTP) scheme in 2021 to promote the development of this payment method as a standard throughout Europe.

Iberpay become the first payment system in Europe approved by the EPC. From the first moment, Iberpay launched the service for its entities and connected its platform CICLOM to process SEPA Request to Pay with any other European bank, enabling them to leverage the full potential of Request to Pay.

Iberpay strives to enhance Spain's banking leadership in European payments, supporting their digitalization and transformation processes. Our compelling value proposition rests on four fundamental pillars: technology, innovation, efficiency, and sustainability.