How Request-to-Pay Will Transform Digital Payments

Around 90% of everyone either shops or banks online, or both. Unfortunately, this has spawned a virtual cottage industry for payment fraudsters. In fact, approximately 63% of businesses have experienced fraud losses in the past 12 months, with $1.2 billion having been stolen during 2018 in the U.K. alone. Enter Exela’s new Request to Pay solution, on which it has partnered with Mastercard Vocalink in the U.K. Under the venture, Exela is developing the Request to Pay Solution, which Mastercard will host and run and Exela will act as distribution partner.

What is Request to Pay?

Request to Pay is a secure messaging service for overlay on top of existing payments infrastructure as a new flexible way to settle bills between businesses, businesses and individuals, and individuals and social contacts. Request to Pay allows end-user solutions to interconnect, and at the same time, provides the basis for the development of new pan-European payment solutions. 

For each “request to pay” transaction, the payer and biller will have the opportunity to communicate in real-time. Supporting and expanding e-commerce and opening up opportunities for value-added services to existing repertoires (such as transaction-financing, liquidity financing, and cash management). Overall, Request to Pay should reduce reconciliation costs and reduce fraud for all parties.

Let’s walk through a Request to Pay use case

For example, let’s envision a consumer traveling for business. Through Request to Pay, the consumer purchases train tickets, and in return, receives a payment confirmation through the communication platform. That’s nothing new, of course, but there’s plenty of opportunity for adding on for the benefit of all parties, as we’ll see. For example:

• The transportation company can use the communication platform to upsell (for example, ticket upgrades) and cross-sell (for example, amenities for the train ride), in all cases, allowing pre-payment with electronic confirmation, and as an add-on, payment and financing options.
• Through partnerships with hotels, restaurants, shops, and attractions at the destination, the platform can be used to cross-sell additional goods and services to the consumer, for which the consumer can utilize the same variety of payment options.
• Billers can use the platform to apply for invoice financing, while the bank can use the platform to analyze investment risk, initiate credit checking, and manage payments.

Request to Pay at the European Digital Banking Summit

Exela recently had an opportunity to present Request to Pay at the European Digital Banking Summit (EDBS) in Berlin, Germany in late November 2019. The EDBS is a private invitation-only gathering that plays host to a community of senior digital banking and FinTech leaders from across the European Banking sector who come together to address key challenges and opportunities within the industry.

There were approximately 50 banks and financial institutions in attendance, although the setting was refreshingly personal, according to Ralf Kastner, Christ Vincent, and Huib Gerrits, who represented Exela at the event.  We also gave a series of 30-minute one-on-one presentations to a select group of banks and other financial institutions. We look forward to rolling out our brand new Request to Pay product demonstration in the months to come.

Stay tuned for 2020 updates to our Events calendar, and don’t miss Exela at the 2020 Diamond Resorts Tournament of Champions in Orlando, Florida. We’re a proud premium sponsor and are hosting two pro-am teams of four golfers.