[ad_1]
Key analysis and exclusive content under the tree. You can even give someone a last minute gift with a one-year subscription to Portfolio Signature. And if you buy an annual subscription for multiple friends, friends and family at the same time, you can also get a quantity discount. So in addition to being a useful gift for the holidays, it can even support the production of quality inexpensive content. Know more
Since the launch of the Instant Payment System (AFR) in early March, more and more national banks have made the payment request service available, which is actually an instant transfer that can be started with preloaded data. A payment request makes it easier for the recipient (in this case the payer) to pay an amount to the requestor for the payment.
How does the payment request work?
Although it is not mandatory for banks to introduce the payment request service, the MNB expects market participants to develop and provide such services to their customers. Based on market feedback, banks that have not yet joined also intend to introduce a payment request that works as follows:
- the initiating party requests a certain amount from the recipient, sends a message containing all the data so that the recipient can start sending money even with a single approval,
- The recipient of the transaction can decide whether to comply with the request, rewrite the requested amount, send more or less, or even reject the request.
However, not only banks (or their customers) can send a payment request to the instant system. The rules and operation of the AFR are designed to allow the incorporation of non-bank actors, either directly or indirectly. Examples of such providers include utilities, insurers, and other players who have a large customer base and issue large amounts of bills on a regular basis.
This is because a payment request is perfectly applicable in situations where a service provider charges a monthly fee, issues an invoice, and wishes to receive consideration for it.
Thus, GIRO Zrt., Which operates the central infrastructure of the national immediate transfer system, allows non-bank participants to connect directly with relatively larger developments, but also provides the possibility of indirect connection through the GIROFix service as of 1 of December. This enables the processing and handling of massive service request messages for service users.
| Payment request submission forms | ||
| GIROFix | Direct connection | |
| Customer base | Utility providers, telecommunications companies, insurance companies, service providers with a larger customer base, institutions | Banks, payment service providers, aggregators, technical service providers, fintechs, high-volume merchants |
| Handling requests and payment responses | In one batch (max 250,000 pieces) | One by one |
| Processing time | Shipping based on receiving capacity on a continuous basis. Comments in cycles per hour | In 5 seconds, 365/7/24 |
| Use cases | Bill payment, rate request | Time Critical Pay Situations, Bill Pay |
| Net | Internet | GIRONetwork |
| Connection | Through the GIROFix client program or API | GIROInstant interface |
| Client-side development | Minimal (using client program) / Moderate (via API) | Major (GIROInstant connection) |
| Source: Giro, Portfolio.hu | ||
“The purpose of the service is to serve customers who would incur disproportionate costs to implement improvements in their direct connection to GIROInstant, but want to submit a large bulk payment request on a regular basis and for whom immediate collection of payment requests is not a time-critical business requirement. “
– The communication department of Giro Zrt told us.
“The service provider sends us information about payment requests, how many customers would like to collect, we process it and send it to the banks as a payment request. The connection with the settlement system goes through us. Also, service providers will be able to connect directly to the payment request service in the same way as banks, which requires more complex development, but this is the only way to send time-critical payment requests, ”said Selmeczi, CEO of GIRO Zrt. Zsolt Kovacs.
The “enemy” of the yellow check
Payment requests work like a digitized yellow check – you don’t need to take a photo or go to the post office to make a payment, but it can be approved at the touch of a button, for example when you arrive in a push message. If the big service providers start offering a new kind of opportunity through the new service, it could easily be that the popularity of yellow checks is starting to wane as well. After all, a payment request, such as a yellow check, supports the family’s cash management (as opposed to direct debit), but is much easier to deposit.
Cover image source: Getty Images.
Article sponsor: Giro Zrt.
[ad_2]
