PayU Pay-by-Link

Introduction

PayU Pay-by-Link is a bank-based payment method that provides customers with the flexibility to pay via their trusted online banking portal. During the checkout process, customers select their preferred bank from a provided list and are redirected to the bank’s secure online interface to authorize the payment. This method is highly popular in markets where online banking is a preferred payment option, particularly across Europe.

Additionally, PayU Pay-by-Link can seamlessly integrate with SEPA (Single Euro Payments Area), enabling merchants to process payments in EUR across all SEPA-participating countries. This integration supports both one-time payments and recurring billing, making it ideal for subscription services and other repeat transactions. SEPA's inclusion ensures compliance with EU payment regulations and leverages standardized bank transfer mechanisms, further enhancing security and efficiency.

Workflows and Transaction Types

Integration Flow for Merchants

Merchants can integrate PayU Pay-by-Link into their systems using KontoCloud's APIs. The process begins with an authorization request, specifying PayU as the payment method and including transaction details such as the amount and currency. Customers are redirected to their chosen bank's portal to log in and authorize the payment. When SEPA integration is enabled, the system can initiate direct debits for EUR-based payments. For more details on integration, see the PayU Authorization Guide.

CIT and MIT Use Cases

• CIT (Customer-Initiated Transactions): Customers initiate payments by selecting their bank at checkout and authorizing the payment through their bank's portal. This approach is most commonly used for one-time purchases and guest checkouts.
• MIT (Merchant-Initiated Transactions): When integrated with SEPA, PayU allows merchants to initiate recurring payments or subscriptions directly from a customer’s bank account. SEPA’s direct debit mechanism securely processes these transactions without requiring the customer’s presence for each billing cycle. For SEPA-specific workflows, refer to the SEPA Payment Process Documentation.

Storable Payment Option (SPO)

In conjunction with SEPA, PayU enables the secure storage of payment details for recurring transactions. Customers’ bank account details are tokenized to comply with PCI DSS standards and ensure that sensitive information is safeguarded. The stored payment option can be utilized for subsequent transactions, streamlining the payment experience for recurring billing scenarios.

Lifecycle and Status of SPO

PayU Pay-by-Link transactions follow a structured lifecycle:

• Authorization: The customer selects their bank and completes payment authorization through the bank's online portal. SEPA-enabled workflows allow merchants to pull funds directly from the customer's account for recurring transactions. Learn more in the Authorization Documentation.
• Capture: Once authorized, the merchant finalizes the transaction by capturing the authorized funds. SEPA integration ensures the transaction is processed in compliance with EU standards for direct debit payments. Detailed capture steps are available in the Capture Guide.
• Refunds and Cancellations: Merchants can issue full or partial refunds or cancel authorized payments before capture. SEPA ensures these actions adhere to standardized processes for EU-based transactions.

Specific Workflows

PayU Pay-by-Link offers workflows for one-time payments, recurring transactions through SEPA, and flexible refund and cancellation management. For merchants operating in Europe, the SEPA integration simplifies cross-border payments by using a unified process for EUR transactions. This ensures faster processing times and reduces costs associated with traditional cross-border bank transfers. For details, refer to the SEPA Documentation.

Transaction Status Flow

Transaction statuses include "Pending Authorization," "Authorized," "Captured," "Refunded," and "Canceled." Each status can be queried and updated via the KontoCloud API, providing merchants with complete visibility into the payment lifecycle. SEPA transactions align with these statuses, offering consistency across different payment methods.

Communication with the Customer

PayU Pay-by-Link ensures customers are informed throughout the payment process via email and app notifications. These communications include updates on payment authorization, successful captures, issued refunds, and transaction cancellations. For recurring SEPA payments, customers are notified before each debit, as mandated by EU regulations, ensuring transparency and trust. By maintaining clear and proactive communication, merchants can enhance customer confidence and minimize disputes. For more on customer communication best practices, visit the PayU Integration Guide.