What is a payment request and why it is important for businesses to use it?

It’s entirely possible that at some point in time you, as a customer, have received a payment request email from a seller you’ve just purchased something from. Or perhaps you’ve simply browsed through the many features myPOS offers, happened upon the Payment Request and wondered what form this service takes in our solution. Well, let’s dive right in.

What is the definition of a payment request?

To lay out the foundations, we briefly explore the meaning of payment requests for businesses. 

Originally designed to fill the gap between the decreasing direct debit payments and the need for quick and easy online transactions, a payment request is a hyperlink sent to a buyer by a seller. The hyperlink redirects the buyer to a secure checkout, where he or she makes the requested payment. The customer fills in their card details at the checkout and pays for the desired service or product.

The better payment solution providers offer this service, us included.

How does it work?

As noted above, the essence of a request to pay is to communicate to customers the necessity to pay for products or services. 

Usually sent as clickable links via an SMS messaging service, email, or chat, payment requests may come in URL or QR code format. This digital request can be received on a mobile banking app or a fintech solution provided by a third party. 

Once the shopper opens the link or scans the code, they’ll be transferred to a checkout page where they can initiate the transaction via a supported payment method.  

Here’s a detailed breakdown of how payment requests work:

• Step 1: A shopper wishes to acquire an item or a service from your online shop or website.
• Step 2: The business sends a payment request to collect funds from the shopper via a selected messaging option. The payment request links are usually provided in advance of invoices. The communicated message must include detailed information that will enable the shopper to complete a purchase. It includes the payment amount, the banking details of the payer and the payee, the payment due date, and a payment link.
  
  While the provided details are not as in-depth as they would be on an invoice, some references must be included. Many businesses automate this step to ensure payment requests are sent out at regular intervals, making the collection of recurring payments easier than ever.

• Step 3: Once the shopper receives and reviews the provided data within the message, they open the payment link to initiate the payment. At a bare minimum, they can opt to only cover part of the bill in some cases.
• Step 4: The transaction is processed, and after approval, the money is sent to the payee from the payer. 

Payment requests have gained popularity in the UK and worldwide as a reliable real-time payment solution. The majority of financial institutions are now implementing this system to offer customers convenience.

Benefits of the payment request

Regardless of the chosen method for sending payment requests to clients, the advantages that you can enjoy as a business are as follows:

• Faster payment – payments requests enable shoppers to complete payments quickly and easily in a matter of a few steps. This eliminates the need to fill out extensive checkout forms and waste time.
• Multi-currency payments – most payment request solutions facilitate international payments through processors that offer currency exchange. 
• Payment reminders – businesses can create automatic reminders that are sent out to customers at regular intervals, notifying them about unsettled payments and amounts owed. 
• Convenience – in most cases, shoppers can choose from a range of different payment methods, offering an extra layer of comfort and flexibility. In the past, payment requests were mostly associated with credit card payments. However, today, customers can select alternatives like in-app payments, bank-to-bank payments, and more. 
• Improved cash flow – as a business, you can enjoy an optimised cash flow and better predictions thanks to payment requests. 

It’s worth noting that your business must ensure that your existing payment infrastructure supports payment requests in order to use them. To create a reliable Request to Pay service, it’s key to explore all avenues for updating and improving your technology for a seamless, convenient, and fully supported solution.

Using payment requests is easy!

Payment request links can be sent via email, SMS, or any chat application that is used these days! Do you want to buy something or book an appointment? Contact your seller, and you can receive a payment link that makes making payments easier and more convenient for both parties.

Sellers can enjoy instant settlement of funds anytime, anywhere, while the convenience for buyers is that they’re not limited to a physical location to make a purchase they desire.

So, from two perspectives, the Payment Request forms the ideal marketing symbiosis between the seller and the customer.

So you see, the need to use this service for your clients is something no business should go without. Businesses are thriving and competing in an environment that dictates not only constant availability but also the need to be close to one another, even though the seller and the buyer are thousands of kilometres away.

myPOS delivers a remarkable solution to service industries, needing distant payments, and it does much more to help them grow. With our innovative platform, myPOS allows for a new connection between a buyer and a seller, which was not available a few years ago.

Our online payment solution can be initiated from different devices and sent via multiple channels

From your card payment device – Payment Requests can be generated only for the terminal’s transaction currency (BGN, EUR, USD, GBP, CHF, RON, HRK, NOK, SEK, CZK, HUF, PLN and DKK), via SMS.

From the myPOS online merchant account – Payment Requests can be sent in the form of an email or SMS in the following currencies: EUR, USD, GBP, CHF, RON, HRK and BGN.

Merchants can check the Request’s status at any time:

• Pending – the link has been sent, but has not been opened yet
• Seen – the link has been opened at least once, but no payment has taken place
• Failed attempts – the client failed to pay
• Paid – the payment has been completed
• Expired – a payment was not made on time. The link or button has an expiration date of 30 days. Therefore, a payment must be completed within that time frame. However, the merchant can send a reminder to the client before the link expires.

Requesting payments from myPOS mobile app!

Gone are the days when you have to be at your desk or computer to run your business operations. Now you can send requests for payments from virtually anywhere, and a great example of this is from the palm of your hand through the myPOS mobile app!

Taking payments acceptance to the next level, you can now harness all the opportunities technology offers and use your smartphone to get paid instantly.

What are some of the functions you can perform from the mobile app?

Here are some of them:

• Send the requests via email, SMS or chat apps 
• See the request’s history – pending, paid or expired
• Get push notifications about important movements in your account

Sending Payment Requests online is an opportunity that a serious business should definitely take advantage of. 

What do business owners say about Payment Request?

Overall,  the majority of business owners appreciate the perks offered by payment request services. 

This solution can help simplify the process of requesting and receiving payments. It enables merchants to save time and valuable resources. Instead of issuing invoices manually, they can automate the process, saving time and reducing the burdens put on administrative teams.

Many businesses also enjoy the fact that payment requests lead to quicker payments, improving cash flow. Automated reminders and easy payment options encourage prompt customer payments, boosting the performance of the company.

Visit our website to find out more about our other value-added payment services.