Request to Pay opens significant market opportunities for corporate banking
With Request to Pay banks can offer additional immediate payment services to corporate, merchant and retail customers
The new SEPA Request to Pay scheme facilitates the immediate electronic payment of invoices, enabling banks’ corporate customers to fully digitalise their invoicing processes
coconet, the market-leading provider of digital solutions for corporate customers, empowers banks to seize the opportunities presented by the new SEPA Request to Pay (R2P) scheme. The scheme, which is currently due for launch in November 2020 by EPC, will enable banks to enter new markets by providing the necessary infrastructure. As a result, they will be able to boost their revenues, increase customer loyalty and gain competitive advantage in the marketplace.
Immediate services for banks’ corporate customers
The new Request to Pay scheme is bridging the gap between invoices and (instant) payments, which optimises digital processes by making them easier, quicker and safer.
For example, banks can use R2P to support their corporate customers in the utilities sector and replace monthly direct debit payments with instant and irrevocable payments. Those customers will then benefit from simplified debtor management, enhanced forecasting and improved liquidity management. Since there will be less manual intervention in the reconciliation process, customers will also benefit from cost savings and reduced risk of error.
Benefits for merchant customers
The new scheme will not only benefit corporate customers, but also enable banks to offer additional services to merchant customers. Banks can provide them with a convenient, account-based payment method. The merchants can instantly access their funds as well as instant status reports allowing better matching of incoming payments with customer orders. Merchant customers in turn can offer their retail customers an alternative payment method. As this method only requires the regular bank account, it will particularly appeal to customers with sensitive data and it might become cheaper than other payment methods.
The versatile range of applications makes R2P particularly attractive. In addition to direct payment, the new format can also be used in combination with other payment methods such as cash on delivery, instalment payments or partial payments from the bank.
In future, the Request to Pay scheme could be expanded to world-wide SWIFT payments. In that case, it will open further opportunities in forecasting and coordination of payments for banks and their customers.
“Banks are working around the clock to prepare for the implementation of the SEPA Request to Pay scheme,” said Björn Hassing, CTO of coconet. “At coconet, we have many years of experience in the areas of payments and cash management. So, we can offer banks our expert support and high-end products as they take this decisive step to serve the Request to Pay market.”
He added: “R2Pwill be highly beneficial to banks and their customers since it will be less error-prone, thereby optimising the payment matching process. The scheme will also be a cost-effective alternative to other payment methods. We are committed to supporting banks as they develop their strategies for offering a convenient Request to Pay experience.”