In a recent panel session focused on the state of Request-to-Pay (RTP) in the Nordics, Gary Wright, head of research at Finextra, engaged with industry leaders Per Nilson from Bankgirot, Anders Olofsson of Tietoevry Banking, and Paul Francis Walvik-Joynt from Mastercard.
Nordic consumers are increasingly adopting retail instant payment solutions like Swish in Sweden, Vipps in Norway, and Siirto in Finland. However, the role of RTP infrastructure in this landscape is still being evaluated. Wright commenced the discussion by asking how RTP aligns with existing payment solutions.
Nilson remarked that current services such as direct debits and e-invoices can be viewed as variations of RTP. Yet, he pointed out that substantial clarifications are still needed regarding the SEPA Request-to-Pay mandate. He emphasized the importance of defining primary use cases, understanding the relevant rulebook schemes, and ensuring that banks commit resources to prioritize RTP.
Walvik-Joynt agreed, stressing the need to understand consumer expectations, particularly those of younger generations who desire immediate transaction capabilities. He highlighted the need for cooperation and partnerships among stakeholders to effectively address consumers’ needs, emphasizing the coexistence of real-time and batch processes.
Olofsson added that RTP should be separated from existing payment types, as it can serve various transactional contexts. He observed that banks have focused more on consumer needs than on corporate needs, especially in light of changing interest rates, where RTP could emerge as a valuable tool for managing working capital.
The conversation then shifted to the innovation surrounding RTP-related products, with Olofsson noting that the current credit transfer system places the onus of providing transaction data on the payer. He proposed that a pull mechanism, where the recipient supplies the relevant data, could streamline the payment process, potentially benefiting banks and corporates in transaction reconciliation.
Walvik-Joynt highlighted the potential of RTP opportunities for corporations, referencing successful implementations in the Philippines. He acknowledged the importance of domestic schemes and payment rails as foundational elements for RTP use cases.
Nilson pointed out that payments themselves are not the primary use case; rather, they are a byproduct of consumer needs, which revolve around simplicity, seamlessness, security, and the ability to choose payment methods upon receiving a payment request.
Towards the end of the discussion, Wright prompted the panelists to consider what corporate treasurers should be discussing regarding RTP. Olofsson stated that banks must define their strategies, focusing on whom they aim to enable—merchants, corporates, or individuals—and how RTP can improve working capital management.
Walvik-Joynt emphasized three critical elements for banks: managing liquidity with RTP, streamlining reconciliation processes, and creating transparency in cash management. He underscored that these measures would address challenges faced by corporations today.
Wright concluded the session by noting that the panel aimed not to provide all the answers but to foster conversation. He acknowledged the complexities and opportunities within the existing payment landscape, recognizing the need for a cohesive approach to unify the various components effectively.