SEPA Request to Pay (SRTP) was launched in mid-2021, paving the way for banking products and services around the new European standard for electronic payment requests. PPI's whitepapers on the topic impressively demonstrate the disruption potential behind it, shed light on its role within payments processes and list initial use cases where the practical benefits quickly become clear.
The pan-European electronic payment request Request to Pay (RTP) went from a theoretical construct to a real standard in mid-2021. The experts at PPI have accompanied the project from the beginning and, based on their extensive experience with standards and procedures in payments, have carried out cost-benefit analyses and developed the first possible use cases. Three whitepapers on the subject of Request to Pay not only trace the history of development, but above all convey the many reasons why the electronic payment request has the potential to change the European payments market in the long term.
Electronic payments are a mass market. In terms of process efficiency and costs, they are clearly superior to analogue processes. For companies in particular, such invoicing processes cause quite considerable, not directly visible costs, both at the outgoing and incoming stages. A complete digitalisation could save triple-digit billions of euros across the entire economy. Request to Pay is an indispensable component in this context, because the European standard for electronic payment requests ensures the transfer of payment data from the invoicing party directly to the payer's digital banking system without media discontinuities. The entire process is finished with one single authorisation. The whitepaper shows the costs of billing processes, illustrates the role of Request to Pay in the overall process and addresses the customer loyalty effect for financial institutions.
Request to Pay can be used in a variety of ways. Financial service providers are involved in this as intermediaries and, in individual cases, even as pathfinders. They can contribute to deployment concepts, place innovative value-added services on the market and ultimately achieve a closer customer-bank relationship. The whitepaper examines application scenarios for Request to Pay as an invoice supplement, as a missing piece of the puzzle on the way to media-discontinuity-free, fully digitalised payment processes, as a cornerstone for completely new payment models or as a convenient solution for payments at the point of sale. Since all financial service providers are effectively starting from scratch when it comes to electronic payment requests, early entrants can realise great market opportunities here.
Value-added services such as digital invoicing and electronic payment requests improve the market position and customer loyalty of financial service providers. But financial service providers have so far been hesitant about the concrete implementation. Why? The technical integration is feasible, the resources required are comparable to those of an instant payments introduction. These necessary investments are likely to be recouped through the benefits of Request to Pay in terms of customer loyalty or possible value-added services.
Sooner or later, an entire product world will emerge around Request to Pay. Institutions that enter the market now can profit from this development. The whitepaper analyses the market situation for corresponding products, guides you through the technical questions on payment requests and shows ways into the market.