Request to Pay – The Next Big Thing in Payments

Tired of chasing late payments or juggling complex billing workflow - Imagine the billing so smooth it gives time to focus on growing your business, Request to pay (R2P) makes it possible. R2P accelerates payment by enabling direct encrypted communication between the business and the payers. It's a secure platform that offers multi-factor authentication while providing real-time updates. It offers data transparency that helps in maintaining an audit trail. R2P is growing in regions like Europe with initiatives like the SEPA scheme.

What is the Request to Pay?

Request to Pay allows businesses to issue bills to payers and engage in communication throughout the billing process. It helps maintain transparency and its secure encryption makes it a reliable channel. This helps streamline workflows, provides real-time access and mitigates the risks associated with manual, paper-based operations.

It fosters communication between biller and payer, thereby accelerating payments and facilitating issue resolution. For businesses and individuals, Request to Pay helps in managing multiple bills. Request to pay creates a link between the biller and the payer by creating an encrypted messaging platform.

Request to Pay is a global payment concept known by different names depending on the region:

• Europe: R2P,
• UK: RtP
• US: Request for Payments
• India: Collect(via UPI)

Request to Pay is a secure platform where the payee and biller details are stored. These details are verified when a payment request is made, which helps prevent fraud. This advanced system is designed to combat payment fraud and cybercrime, which have become increasingly common. It is built on secure repositories where the requests are managed.

To learn more about payment fraud and how to protect against it, see Payment Verification: Secure Your Transaction and Prevent Fraud.

Why do you need "Request to pay"?

R2P is offering a smoother and smarter way to manage digital payments. It enhances transparency and communication in the business, while empowering customers and businesses to make more controlled decisions.

Top 5 Business Benefits of Request to Pay

Enhance security:

• Reduces the risk of payment fraud.
• R2P platforms often incorporate multi-factor authentication (MFA) to verify the identity of both the payer and the payee.
• This comprehensive approach to security fosters greater trust and confidence among users and businesses alike

Streamline communication:

• Facilitates sending encrypted messages between parties.
• Billers can send immediate payment requests with detailed invoices and terms directly to the payer.
• Streamlined interactions lead to increased efficiency.

Boost liquidity:

• Improves payment insights and supports payment overlay services.
• Businesses gain a deeper understanding of their cash flow.
• Helps identify potential bottlenecks and anticipate future liquidity needs.

Flexible payment option:

• Supports credit card, debit card, or ACH transfer.
• Customers can select a payment method aligned with their financial practices and convenience preferences.

Request to Pay Process

How "Request to Pay" Works: A 5-Step Process

Request to Pay provides a real-time payment process between businesses and customers. Here is the five-step process for how R2P works:

Request initiated: Request to pay starts from the payee by launching a request for a specific transaction from the payer. The payer receives a notification on their device, which can be through a message, mobile banking app or any third-party fintech software.

Payer takes action: The payer can choose to accept, reject the request or pay in part. The invoice contains transaction details, the due date, and other information as per business preferences.

Easy access: Both parties have secure access to each other's account details and prior history. Communication is seamless via the platform's encrypted messaging feature.

Real-time update: Providing both the business and the customer with immediate confirmation of payment initiation and completion, updates are shared in real-time.

Acceptance or denial: Both biller and payer are notified of the final status of the payment request-whether it's accepted, rejected, or partially fulfilled.

Globally, The Next Big Thing: Request to Pay

In Europe, the real-time growth rate of the payment market is 35.4% till 2030 projecting the revenue up to $40,798.7 million. Till 2027, the cashless transaction is set to reach 2.3 trillion, doubling from 2022. In Europe alone the R2P market is expected to grow at a CAGR of 20% by 2027 resulting in driving digital payments in demand.

Request to Pay is revolutionising global payments by offering an efficient and flexible financial management solution. It enhances a business's payment cycle by giving real-time access to payment requests. Request to Pay is also benefiting many new-age industries, including Europe's growing gig economy.

The UK's gig economy is experiencing significant growth, with the number of freelance workers increasing from 4.7 million to 7.25 million by 2022. This expansion highlights the crucial role of Request to Pay systems in bridging gaps between billers and payees within this rapidly growing sector. It is particularly useful for managing transactions in the freelance economy.

Businesses can send payment requests directly to customers, avoiding delays. The traditional payment landscape often suffers from delays, impacting cash flow and customer satisfaction. However, a transformative solution is emerging: Request to Pay (R2P), which offers more flexibility and control over payments.

SEPA scheme in Europe

The Single Euro Payments Area (SEPA) aims to simplify electronic euro payments, allowing individuals and businesses to easily make instant payments throughout Europe using a single payment account and card - similar to domestic transactions.

In Europe, SEPA represents a major upcoming shift, effective January 9th and October 2025. Businesses will gain the capability to receive and send payments within 10 seconds. Instead of traditional payment security measures, a robust screening platform will scan customers, conduct thorough screening, and update data sources. Implementing the right solutions will be essential. Banks must evolve to support and integrate emerging payment software, which provides services like request-to-pay.

This innovative approach empowers businesses to directly initiate payment requests to their customers, significantly streamlining the entire payment cycle. R2P systems can provide rich data on payment patterns, customer behaviour, and transaction trends, offering valuable insights for business optimisation. It enhances information sharing and electronic payments.

To learn more about Request to Pay, contact the experts.

Nikita Deosarkar