Mastercard Incorporated (NYSE: MA) and Temenos have confirmed a partnership to support banks to speed up the launch of Request to Pay services in the UK. Temenos and Mastercard hope to expedite market adoption by allowing complete end-to-end, real-time processing as well as safe and successful interaction between buyers and payers through this partnership.
Billers can use Request to Pay to dynamically request and handle the payment for a bill rather than issuing an invoice. Through a banking or third-party fintech application, the payer gets a curated digital request on their computer or mobile device. The payer can accept, postpone, or even reject the application in part or in full, allowing them to better manage their bill payments.
If authorized, a payment order will be sent to the bank for execution via a preferred method, such as the Faster Payments system, which will allow the Biller to accept money in real-time. Furthermore, Financial institutions like Request to Pay because it puts them in control of the bill-paying process, improving consumer engagement and allowing them to stand out from the competition.
In addition, it enables their biller clients to communicate with payers more securely, resulting in faster payment receipt, improved payment consolidation, and a reduction in delinquency and costs involved. Moreover, due to the strong Anti-Money Laundering and Know Your Customer policies in place across the ecosystem, Request to Pay can also assist prevent instances of Authorized Push Payment (APP) crime for both Financial Institutions and Payers.
According to Mastercard’s State of Pay survey, one in ten consumers in the UK forget to pay their bills, leading to delayed payment, and nearly one-fifth say they don’t feel in control of their account’s expenditures. Request to Pay gives people more alternatives and flexibility when it comes to paying bills, whether it’s for big purchases, utility and telecom bills, or things like council tax.