Request for pay (RfP) is a messaging system associated with a payment rail. Using RfP, an individual could request funds from another individual with a payment option woven in or an invoice could be messaged from one business to another for payment. The use case that has been getting a lot of attention lately is the ability for a biller to request payment from a customer.
In the U.S. there have been some notable launches of RfP specifically with The Clearing House’s RTP network. In August, JP Morgan Chase Bank announced a B2B option for its customers. You can read more about that here. Today, a mash up of BNY Mellon, Citi, and Verizon announced a consumer bill pay solution using RfP. Through Real-Time E-Bills and Payments, the RfP service offered by BNY Mellon, Verizon customers could pay their Verizon bills instantly if they have an account a Citi (Got that?). Both the Chase and the Verizon/BNY Mello/Citi announcements are narrow in scope, meaning that a limited number of businesses and consumers will have the opportunity to participate, but it’s a start. Here’s a description of this partnership from the press release:
BNY Mellon and Citi have collaborated with Verizon to be the first company to send request-for-payment messages to consumers who bank with Citi. When using BNY Mellon’s new Real-Time E-Bills and Payments functionality, Verizon customers with Citibank accounts can pay their bills immediately, at any time of day, 365 days a year, and enjoy greater control over their finances to help avoid overdraft fees.
Additionally, Verizon customers who bank at Citi can use Citibank Online to schedule the payment to be made at a specified date and time in the future, such as on their next recurring payday or as an on-demand payout from a platform supporting a supplementary income stream, such as a ride-hailing or food delivery app.
“While setting up automatic bill payments is convenient for many customers, living with weekly budgets or irregular income streams can be a challenge,” said Kate Luft, Head of Retail U.S. Segments and Products at Citi. “Real-Time Bill Pay gives people greater control to pay the bills they want to pay precisely when they want to pay them. We look forward to expanding this program.”
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group