Real-Time Payments Tracker® Series Report

Digital Alchemy: The Rise and Reach of Request for Payment (RfP) Capabilities

September 2023

The rise of Request for Payment (RfP) is turning the digital payments experience upside down. Are we on the brink of a new era in digital payments?

PYMNTS

RfP solutions are orchestrating a transformative update of the global payments landscape. As regional authorities and institutions race to adopt and enhance their RfP and real-time payments systems, the motivation for doing so is clear: Immediate, efficient and user-controlled payment methods are the future.
The global rise in real-time payments offerings and use cases parallels the ascendency of RfP solutions. Together, they redefine the global landscape of financial transactions — with booming adoption in the U.S. and Asian markets underscoring the payment method’s transformative impact.
As the global transition from traditional payment methods gains speed, RfP stands out for its promise to ease payments and collections processes. Fusing the immediacy required in today’s business climate with enhanced security, RfP is poised to further transform both payment method standards and user experiences.


Register for Unlimited Access
Fill in the form below for free unlimited access to all our Trackers and Studies.

Thank you for registering. Please confirm your email to view all our Trackers.

    yesSubscribe to our daily newsletter, PYMNTS Today
    By completing this form, I have read and acknowledged the terms and conditions.


    The digital payments ecosystem stands at the tideline of a new era as systems such as The Clearing House’s Request for Payment (RfP) capability, available on the RTP® network, set a new current in motion. RfP is more than just a transactional method. It offers a union of instantaneous payments and direct messaging — empowering businesses to channel payment requests straight to consumers’ banking apps. As the United States, Europe and Asia embrace this novel payments solution, grasping RfP’s game-changing nuances is all the more critical for businesses and consumers.

    The Global Race to Adopt RfP Solutions Is Intensifying

    RfP solutions are orchestrating a transformative update of the global payments landscape. As regional authorities and institutions race to adopt and enhance their RfP and real-time payments systems, the motivation for doing so is clear: Immediate, efficient and user-controlled payment methods are the future.

    Witness the dawn of the RfP era:

    From The Clearing House in the U.S.
    to SEPA in Europe and UPI in India,
    RfP is fast introducing a
    new payment experience.

    The Clearing House reboots the payment paradigm with RfP.

    The Clearing House’s RfP capability is reshaping how businesses and consumers transact. The company’s RfP offering now permits broker-dealers, billers and suppliers to request immediate payments from customers, transforming the conventional payment dynamic. The solution’s design grants consumers the autonomy to manage their payment decisions, and for businesses, it represents a leap in the direction of more streamlined digital invoicing and billing.

    RfP storms Europe as CaixaBank and Iberpay forge ahead with SEPA implementation.

    CaixaBank and Iberpay’s announcement of the launch of Request-to-Pay (RtP) — European parlance for RfP — in the Single Euro Payments Area (SEPA) of Europe is testament to the growing clout of payment capabilities such as RtP and RfP. This innovative “pull” payment system complements prevalent “push” methods, demonstrating the versatility of RfP solutions. As RfP gains traction across SEPA, Europe’s commitment to modernizing digital payments looks increasingly strong.

    India deals a winning hand in the RfP game.

    India’s dominance on the digital payments field is hard to overlook. The country’s Unified Payments Interface (UPI) platform not only showcases the essence of RfP but also demonstrates its vast potential. With the National Payments Corporation of India (NPCI) spearheading initiatives, the stage is set for RfP to reshape consumer and business payment experiences across the subcontinent.

    RfP and Real-Time Payments: A Global Tango of Payments Innovation

    The global rise in real-time payments offerings and use cases parallels the ascendency of RfP solutions. Together, they redefine the global landscape of financial transactions — with booming adoption in the U.S. and Asian markets underscoring the payment method’s transformative impact.

    500M+

    Payments The Clearing House’s RTP® network
    has processed in its five-year lifespan as of August 2023

    The Clearing House’s RTP® network milestones set RfP on path for meteoric rise.

    The staggering growth of The Clearing House’s RTP network highlights the healthy appetite in the U.S. for real-time transactions. Having completed more than 500 million payments in five years as of August 2023, the network has cleared the way for RfP solutions to flood popular consciousness, spotlighting the latent demand for streamlined, user-controlled payment methods — exactly what RfP delivers.

    India and Singapore shake up the status quo with PayNow-UPI union.

    Earlier this year, India and Singapore made waves with their integration of UPI and PayNow. Aiming to streamline more than $1 billion in annual financial transfers, this groundbreaking collaboration sets a new standard for cross-border payments possibilities. By marrying the capabilities of RfP and real-time payments, the two countries have cracked open the door for a more efficient global payments landscape.

    RfP Emerges as the North Star of Digital Payments

    As the global transition from traditional payment methods gains speed, RfP stands out for its promise to ease payments and collections processes. Fusing the immediacy required in today’s business climate with enhanced security, RfP is poised to further transform both payment method standards and user experiences.

    $1.2T

    Value of same-day ACH payments processed
    in the first half of 2023, a clear indication of the
    market’s evolving appetite for fast payments

    Same-day ACH boom signals the oncoming RfP tsunami.

    In the first half of 2023, same-day automated clearing house (ACH) payments rose sharply to achieve a value of nearly $1.2 trillion — a year-over-year growth of almost 52%. Nacha attributes this rise to the increased payment limit of $1 million — yet another story in the book of growing demand for speedy transactions. This momentum showcases the market’s readiness for more advanced payment systems, including real-time payments that also feature RfP capabilities, which offer both speed and two-way communication.

    Is it checkmate for checks as the surge in fraud ushers in RfP era?

    The global trend toward cashless transactions is irrefutable, yet the shocking escalation of check fraud — at 680,000 reported instances in 2022, nearly double those in 2021 — is a call to action to move past the vulnerabilities of outdated systems. While consumers in the U.S. retain a lingering affinity for checks, systemic fraud might just be the catalyst-in-waiting, encouraging an uptick in the use of RfP to address security concerns and inefficiencies.

    Europe pivots to a synchronized payments future.

    Even in regions that are traditionally slower to embrace rapid innovation, such as Europe, the allure of real-time payments and RfP is undeniable. However, for RfP to truly cement its place on Europe’s payments landscape, banks and other financial institutions must confront the dual challenges of synergizing payments ecosystems and championing collaboration.

    From Insight to Impact: The RfP Directive for Businesses

    As the narrative of digital payments continues to unfold, all eyes are now on RfP. The rapid rise of this new payments technology means that businesses have an unparalleled opportunity to enhance the efficiency of their accounts payable (AP) processes while crafting more personalized customer experiences.

    Understanding RfP’s trajectory provides businesses with a compelling vantage point. How do businesses translate these insights into action?

    • Set the RfP pace: In the quicksilver world of digital transactions, speed and dialogue increasingly reign supreme. RfP offers both. By integrating this system, businesses do not just keep up — they lead.
    • Fortifying trust through RfP: With the cyber landscape becoming increasingly complex and threat prone, offering a secure RfP option can set a brand apart. Ensure the RfP framework is backed by robust security measures to bolster consumer confidence.
    • Do not recreate. Collaborate: While crafting a bespoke RfP solution might seem appealing, partnering with a seasoned RfP provider offers a decisive advantage. These experts bring experience and established infrastructure that enable faster integration and scalability.
    • Illuminate the RfP path for consumers: A well-informed consumer is an empowered one. By demystifying RfP’s benefits, businesses foster a consumer experience conducive to RfP’s widespread adoption.
    • Say adieu to vulnerable payment methods: The clock is ticking for checks and other archaic payment methods. Transitioning to RfP is not only about embracing the future — it’s also about breaking from a vulnerable present.

    Will your organization blaze the trail or simply tread the path others pave?

    About

    The Clearing House operates U.S.-based payments networks that clear and settle funds through ACH, check image, the RTP® network and wire transfers. The RTP network supports the immediate clearing and settlement of payments along with the ability to exchange related payment information across the same secure channel.
    Learn more at www.theclearinghouse.org/

    Ingo

    PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists include leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multi-lingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.


    We are interested in your feedback on this report. If you have questions or comments, or if you would like to subscribe to this report, please email us at feedback@pymnts.com.

    Disclaimer

    The Real-Time Payments Tracker® Series may be updated periodically. While reasonable efforts are made to keep the content accurate and up to date, PYMNTS MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE CORRECTNESS, ACCURACY, COMPLETENESS, ADEQUACY, OR RELIABILITY OF OR THE USE OF OR RESULTS THAT MAY BE GENERATED FROM THE USE OF THE INFORMATION OR THAT THE CONTENT WILL SATISFY YOUR REQUIREMENTS OR EXPECTATIONS. THE CONTENT IS PROVIDED “AS IS” AND ON AN “AS AVAILABLE” BASIS. YOU EXPRESSLY AGREE THAT YOUR USE OF THE CONTENT IS AT YOUR SOLE RISK. PYMNTS SHALL HAVE NO LIABILITY FOR ANY INTERRUPTIONS IN THE CONTENT THAT IS PROVIDED AND DISCLAIMS ALL WARRANTIES WITH REGARD TO THE CONTENT, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT AND TITLE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF CERTAIN WARRANTIES, AND, IN SUCH CASES, THE STATED EX CLUSIONS DO NOT APPLY. PYMNTS RESERVES THE RIGHT AND SHOULD NOT BE LIABLE SHOULD IT EXERCISE ITS RIGHT TO MODIFY, INTERRUPT, OR DISCONTINUE THE AVAILABILITY OF THE CONTENT OR ANY COMPONENT OF IT WITH OR WITHOUT NOTICE.
    PYMNTS SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER, AND, IN PARTICULAR, SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAM AGES, OR DAMAGES FOR LOST PROFITS, LOSS OF REVENUE, OR LOSS OF USE, ARISING OUT OF OR RELATED TO THE CONTENT, WHETHER SUCH DAMAGES ARISE IN CONTRACT, NEGLIGENCE, TORT, UNDER STATUTE, IN EQUITY, AT LAW, OR OTHERWISE, EVEN IF PYMNTS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
    SOME JURISDICTIONS DO NOT ALLOW FOR THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, AND IN SUCH CASES SOME OF THE ABOVE LIMITATIONS DO NOT APPLY. THE ABOVE DISCLAIMERS AND LIMITATIONS ARE PROVIDED BY PYMNTS AND ITS PARENTS, AFFILIATED AND RELATED COMPANIES, CONTRACTORS, AND SPONSORS, AND EACH OF ITS RESPECTIVE DIRECTORS, OFFICERS, MEMBERS, EMPLOYEES, AGENTS, CONTENT COMPONENT PROVIDERS, LICENSORS, AND ADVISERS.
    Components of the content original to and the compilation produced by PYMNTS is the property of PYMNTS and cannot be reproduced without its prior written permission.
    The Real-TIme Payments Tracker® Series is a registered trademark of What’s Next Media & Analytics, LLC (“PYMNTS”).