Request to Pay is changing payments – first use cases

The payment request or, in business terms, Request to Pay (R2P), is a new payment instrument that is set to change payments for the long term. In the whitepaper “Request to Pay completes the electronic payment process”, I have already explained the relation between electronic billing, instant payments and the hitherto missing payment instrument Request to Pay.

I will use this blog entry to present the first few of many use cases which can be easily addressed to an existing bank account via Request to Pay:

  • Request to Pay in case of an already sent commercial invoice: an easy use case is that the invoice has already been sent in a classic way and a Request to Pay is additionally sent afterwards. This use case primarily focuses on speeding up the settlement of the due invoice by facilitating the invoice data processing for the debtor. The Request to Pay related to the invoice that the debtor has already received is displayed to him in his online or mobile banking application with the recipient data, the payment amount and the remittance information already filled out. The debtor only needs to confirm the data and sign the execution with his credentials.

  • Request to Pay combined with a commercial invoice: of course, the previously described use case is also conceivable if both an electronic invoice and the associated Request to Pay are to be presented to the debtor at the same time in his online or mobile banking application. The conventional postal dispatch is thus eliminated and the debtor can view his invoice digitally and pay it in a simple manner. This method also offers the option to digitally store the invoice in a banking archive and to digitally match it with a payment at any time.

  • Request to Pay in step-by-step transactions: needless to say, Request for Pay is useful for more than just scenarios with separate locations. It is thus also conceivable to digitise the previous cash on delivery method. The supplier addresses a Request to Pay message to the recipient who then verifies the product delivery and initiates an instant payments order as response to the request. The supplier is informed via a notification that the payment has been received and releases the product.

  • Request to Pay in stationary trade: similar to the previously described case, Request to Pay could also be used with instant payments and notifications in stationary trade. In this case, it is not the invoice but the purchase receipt that is transported with the Request to Pay message and can be stored in a digital archive at the account together with the booking. The cashier personnel release the purchase only once the notification has come in.

As demonstrated, payment requests are applicable in many sectors and I therefore believe that the new payment instrument Request to Pay is bound to change payments as we know them on a lasting basis. I will continue to post frequent updates on current developments and additional use cases on this blog.

Author: Eric Waller
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