U.S. Bank announced that its consumer and small business clients will soon be able to receive what is called a Request for Pay (RfP) message for a bill that is owed. The payer can pay that bill, if they wish, instantly through The Clearing House Real Time Payments (TCH RTP®) network. The user experience goes something like this:
- A consumer or small business receives a text message or email initiated by a biller letting them know that they have a bill payment coming due. They payer has the opportunity to review the full details of that bill.
- The U.S Bank payer can respond by paying the bill in full or make a partial payment. They can pay the bill immediately or schedule the payment.
- When the payment is sent from the payer’s checking account, it is received immediately by the biller, with all the necessary payment details to facilitate an immediate reconcilement.
U.S. Bank’s announcement of their successful test of RfP, followed by a full launch in the first quarter, signals to billers that the opportunity to use RTP and the Request for Pay has expanded, as there are now millions more consumer and small businesses that can use RTP to pay bills. This announcement comes on the heels of a previous announcement the bank made in November where they launched the RfP capabilities for their corporate biller clients.
Here’s more from this week’s announcement:
U.S. Bank successfully completed a test of consumer bill payments using Request for Payment (RfP), an RTP® solution that is transforming how billers send and customers pay their bills. U.S. Bank will be one of the first financial institutions to bring this capability to the marketplace when it makes the service available to its millions of consumer bank customers in the first quarter of 2022.
The end-to-end process is done in real time, assuring both sender and receiver that the bill is paid instantly, simply and with all of the correct information contained in the payment.
“Request for Payment offers a new bill payment model that is better for billers and their customers, reducing the friction associated with existing bill presentment and payment solutions today,” said Shailesh Kotwal, vice chair, U.S. Bank Payment Services.
This milestone demonstrates U.S. Bank’s commitment to innovation, providing customers the very best tools to manage their money in a seamless and intuitive manner,” said Tim Welsh, vice chair for U.S. Bank Consumer and Business Banking. “While the first application of RfP for consumers is an innovative bill pay experience, RfPs have the power to enhance online account opening, account to account transfers, small business e-invoicing and simplified payables.”
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group