'Request to Pay' will spur new payment messaging services

Out-Law News | 03 Jun 2020 | 11:20 am | 1 min. read

Payment institutions and financial technology companies have an opportunity to build innovative new services based on the 'Request to Pay' framework newly published in the UK, according to an expert in payments law.

Andrew Barber of Pinsent Masons, the law firm behind Out-Law, said new payment messaging services will emerge in light of the development.

The 'Request to Pay' framework has been developed by Pay.UK, the body responsible for designing and implementing new payments architecture in the UK. It sets out message standards, rules, and terms and conditions for the development of so-called Request to Pay services, which will allow organisations to effectively invoice others through a two-way communication channel, and allow prospective payers to understand more about the payment they are being asked to make and decide whether to make a full or partial payment, query the bill, decline a payment or request an extension to pay, among other things.

Pay.UK said more than 400 organisations helped to "refine" the Request to Pay framework and that it has already been successfully piloted.

Barber said: "The publication by Pay.UK of the framework for the development of Request to Pay services is another key step in widening the range of payment offerings in the UK. While being a messaging overlay to existing payment systems, Request to Pay will allow for the creation of a new range of payment messaging services to allow payment users to quickly and easily pay invoices from a range of organisations."

"We will undoubtedly see a range of new propositions emerge over the next 12 to 18 months as firms take advantage of the development framework," he said.

Paul Horlock, Pay.UK chief executive, said “The Request to Pay framework represents the culmination of a user driven journey that was started by Faster Payments, taken forward by the Payments Strategy Forum and we’re now excited to see come to fruition through Pay.UK with the support of stakeholders from across the industry. It is another milestone on the way towards building a more flexible future for payment services, fit for the needs of people and businesses everywhere."