Temenos and Mastercard Join Forces to Accelerate the Adoption of Request to Pay

Rhea-AI Summary

Temenos announced a collaboration with Mastercard to enhance Request to Pay services in the UK, making it simpler for banks to adopt this payment method. The partnership seeks to provide banks with pre-composed solutions on the Temenos Banking Cloud alongside Mastercard’s services, facilitating quicker, cost-effective implementation.

Request to Pay allows dynamic management of bill payments, enhancing convenience and security for users. With the UK recurring bill payments market estimated to surpass six billion transactions, the initiative aims to capture significant market potential while addressing consumer needs for control and flexibility.

Positive

• Collaboration with Mastercard to accelerate Request to Pay services adoption in the UK.
• Enhanced customer engagement for financial institutions through the implementation of Request to Pay.
• Potential to capture vast market estimated at over six billion transactions and hundreds of billions of pounds in value.

Negative

• None.

The collaboration aims to drive forward the development of Request to Pay in the UK, making it easier for financial institutions to introduce Request to Pay services for their customers

GENEVA, Switzerland--(BUSINESS WIRE)-- Temenos (SIX: TEMN), the cloud banking platform, today announced a collaboration with Mastercard, a leading global technology company in the payments industry, that will help banks to accelerate their introduction of Request to Pay services in the UK. This new initiative combines pre-composed solutions on the Temenos Banking Cloud with market-certified Mastercard services, making it easier, faster and cheaper for financial institutions to introduce Request to Pay services.

Request to Pay enables billers to dynamically request and manage the payment for a bill rather than simply sending an invoice. The payer receives a curated digital request on their internet or mobile device through a banking or third-party fintech application. The payer can either partially or fully approve, defer, or even reject the request, enabling them to manage their bill payments better. However, if approved, a payment order will be submitted for execution within the bank via a preferred route, including through the Faster Payments system, allowing the Biller to receive funds in real-time.

While Request to Pay has enormous potential to transform the payments landscape, it is still at an early phase of its rollout and reach. With this collaboration, Temenos and Mastercard aim to accelerate market adoption, enabling complete end-to-end, real-time processing and secure and successful communication between buyers and payers.

Request to Pay is attractive to financial institutions as it positions them at the center of the bill pay experience, helping to improve customer engagement and achieve competitive differentiation. For their biller clients, it helps them engage with payers more securely and effect the faster receipt of the payment, improve payment reconciliation and reduce arrears and associated costs. Furthermore, for both Financial Institutions and Payers, Request to Pay can also help reduce instances of Authorized Push Payment (APP) fraud due to the strict Anti-Money Laundering and Know Your Customer processes in place across the ecosystem.

Mastercard’s State of Pay report found one in ten people in the UK often forget to pay their bills resulting in late payments, and nearly one in five say they do not feel in control of the outgoings from their accounts. Request to Pay provides individuals with more options and flexibility to settle bills, whether for significant purchases, utility and telecoms bills, or items such as council tax payments.

The estimated market potential for Request to Pay is vast. The UK recurring bill payments market alone is estimated at more than six billion transactions, amounting to hundreds of billions of pounds in value. There are also a large number of ad-hoc bills for non-recurring items like car repairs and decorating services, which present an additional significant potential market for Request to Pay. UK Finance estimates these ad-hoc bills total approximately 30bn bills annually. Increased digital services and subscriptions have stimulated the growth of non-traditional recurring bills – further increasing the expectation of volume growth in the upcoming years.

Mick Fennell, Business Line Director, Temenos Payments, said: “The race is now on to take advantage of Request to Pay driven market opportunities, where both billers and payers demand easy to use solutions embedded into the service offerings from their banks. Working with Mastercard, the Temenos Request to Pay solution will enable banks to quickly seize and develop these opportunities, building a competitive edge in fulfilling market demand for efficient, reliable, and cost-effective execution of the service.”

Frode Asheim, EVP, Bill Pay, Mastercard, added: “When paying bills, people value choice, control and flexibility with the added convenience of having all their bills in one place for a smooth day-to-day money management experience. Our innovative Request to Pay solution addresses these needs from consumers while at the same time providing additional benefits for billers and financial institutions. The participation of banks and other FI’s is essential to the success of Request to Pay, and by working with partners like Temenos, we can accelerate adoption in the market.”

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About Temenos

Temenos AG (SIX: TEMN) is the world’s leader in banking software. Over 3,000 banks across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 1.2 billion banking customers. Temenos offers cloud-native, cloud-agnostic and AI-driven front office, core banking, payments and fund administration software enabling banks to deliver frictionless, omnichannel customer experiences and gain operational excellence.

Temenos software is proven to enable its top-performing clients to achieve cost-income ratios of 26.8% half the industry average and returns on equity of 29%, three times the industry average. These clients also invest 51% of their IT budget on growth and innovation versus maintenance, which is double the industry average, proving the banks’ IT investment is adding tangible value to their business.

For more information, please visit www.temenos.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220328005774/en/

Jessica Wolfe & Scott Rowe

Temenos Global Public Relations

Tel: +1 610 232 2793 & +44 20 7423 3857

Email : press@temenos.com

Alistair Kellie & Andrew Adie

Newgate Communications on behalf of Temenos

Tel: +44 20 7680 6550

Email: allnewgatetemenos@newgatecomms.com

Source: Temenos

FAQ

What is the collaboration between Temenos and Mastercard about?

Temenos and Mastercard are collaborating to accelerate the adoption of Request to Pay services in the UK, helping banks implement this payment method more efficiently.

How does Request to Pay work?

Request to Pay enables billers to dynamically request and manage payments, allowing payers to approve, defer, or reject requests directly through their banking or fintech applications.

What market potential does Request to Pay have in the UK?

The UK recurring bill payments market for Request to Pay is estimated to exceed six billion transactions, representing a significant financial opportunity for participating banks.

What benefits does Request to Pay offer to financial institutions?

Request to Pay enhances customer engagement, allows for faster receipt of payments, and helps reduce instances of fraud through improved security measures.

When was the collaboration between Temenos and Mastercard announced?

The collaboration was announced in a press release dated March 28, 2023.