How does request to pay work?
Fundamentally, a request to pay enables a payee to make a request for the initiation of a payment by a payer. The payee and the payer may be persons, businesses or any other payment account holders.
The essential steps in the process are usually the following:
- A request is made by the payee.
- The payer is provided with information on the amount, description of the purpose of the transaction and payee information.
- The payer decides to approve or decline the request, resulting in the authorisation (or the refusal) of the payment transaction.
- Upon approval of the payment request, the payer’s bank is instructed to execute a payment to the payee.
How does EBA CLEARING’s R2P service support request to pay?
R2P is based on a four-corner model: as a real-time messaging layer separate from the clearing & settlement and the end-user services layers, R2P enables the request to pay-related message flow between the PSPs of the payee and the payer.
With a four-corner model, PSPs have the flexibility to develop their own end-user products.
R2P allows local request to pay solutions to interoperate and it provides the basis on which PSPs can create new pan-European solutions.
To learn more about the 4-corner model and how it is different from the UK community's Open Banking approach to request to pay, read the recent article by Finextra.