Definition
The PR (Payment Recipient) is the beneficiary of a payment: the person or company whose account will be credited.
In the STET standard and, more broadly, across PSD2 APIs (Berlin Group, OB UK), they are identified by their IBAN and name, carried in the creditor or beneficiary block.
PR vs PAO: who pays, who receives
This is the basic duality of any payment:
- PAO (Payment Account Owner) — pays: their account is debited.
- PR (Payment Recipient) — receives: their account is credited.
The PSU, for their part, is the user of the service who orchestrates the operation. They may be the PAO (the standard case: you pay yourself), the PR (a Payment Request: a merchant asks to be paid) or a third party (an accountant acting for their client).
What defines the PR
- Identified by a valid IBAN, eligible for the instruments used (SCT, SCT Inst, SDD).
- Their name is matched against the IBAN through Verification of Payee (VoP), mandatory since 2025 on SEPA instant transfers.
- May be an individual, a company, a public administration or another PSP.
- Has nothing to do to receive a transfer (unlike a direct debit, which requires a mandate).
What does not define the PR
- They consent to nothing: it is the PAO who approves the debit via SCA.
- They do not need to be authorised or to have a contractual relationship with the PISP to receive funds.
- They do not control the timing of execution: it is the PAO's ASPSP that decides, according to SEPA rules.
Within the PSD2 ecosystem
The PR is passive in the flow: it is the destination of the funds, without taking part in consent or authentication. Its reliability (valid IBAN, consistent name), however, determines the success and security of the operation.
Real-world examples
- E-commerce: you pay at Decathlon via Fintecture. Decathlon is the PR, its merchant IBAN is credited; you are the PAO (and the PSU).
- B2B invoice: your supplier sends a payment request via Bridge. They are the PR; their IBAN is pre-loaded, so you have nothing to type in.
- Transfer between friends: on Lydia or Lyf, your friend is the PR; the app shows their phone number, but it is indeed their IBAN that is resolved and credited.
- VoP: since October 2025, every European bank checks that the PR's name matches their IBAN before an instant transfer — fintech apps must handle this check in their UX (warning, for instance, if "Jean Dupont" does not match "SARL Dupont").