Describing Digital Payments (1S2)

The digital economy is putting pressure on finance departments around the globe.

This is the new normal of volatility - it is not just in the traditional areas of currency exchange risk and commodity prices, but also includes macroeconomic volatility and rapidly changing consumer preferences. In addition, tax policy volatility and complex regulatory requirements are challenging finance departments to provide ever deeper and ever more real-time information.

The second challenge is the proliferation of business model change, across all industries. Industry lines are blurring and the number of mergers and acquisitions continues to grow, becoming a standard model for achieving growth and innovation. Disruptive competitors are entering the market at an increasing pace. The emergence of digitally-enabled business models is forcing finance to become ever more agile and proactive.

As a result, finance is being asked to drive strategy in a whole new different way - providing real-time insight and proactive advice on investments, mergers and acquisitions, and on business model transformation.

In addition, finance is being asked to support the process of digital transformation across the enterprise. The sum of these changes has the potential to impact the entire financial value chain. Everything from how we bill, collect, report, and pay taxes, to how we plan for and control the business is going digital and real-time.

Enterprises have realized that finance transformation will help drive innovation and manage this volatility.

Real-time payments without the SAP digital payments add-on can be costly and tedious. The following constraints result from legacy system landscapes.

• Custom specific implementation and maintenance for each PSP
• Technical lock-in

• Restricted to credit card payments
• Further digital payment methods only via custom implementation

• Critical credit card data stored in ERP - risk of data loss
• High costs for PCI DSS certification

No automatic post processing in accounting, high manual effort and error-prone

The digital payments add-on is a cloud service that allows companies to process incoming credit card payments and other real-time payment methods in a secure and efficient way. This helps to significantly reduce cash reconciliation efforts for all companies running any variant of SAP order/sale-to-cash processes (B2B, B2C, POS, web shops, and so on) who need to offer their customers flexibility and access to multiple digital payment methods.

Customers implementing the SAP digital payments add-on should also consider:

• The customer needs to license the SAP digital payments add-on (which is transaction-based).
• SAP S/4HANA Cloud, SAP S/4HANA On-Premise and several other SAP solutions are integrated out-of-the-box.
• Integration with the PSPs is available out-of-the-box. The customer must have a contract with the PSP(s) of their choice.

For your IT department there are many benefits to adopting this standard approach:

• Predictable setup and operation costs for integrating PSPs by using SAP services to link to world-class PSPs and digital payment processors
• Avoid expensive PCI compliance audits by using standard connection methods that keep sensitive data out of your system.
• Simplified operations - Services provided by one service provider (SAP) across your IT landscape - SAP takes care of all format changes
• Future proof:
  • As your landscape changes, the links to digital payment methods stay stable
  • As new payment methods and providers evolve, SAP keeps your payment processes up-to-date

• Technical integration to world-class PSPs and digital payment processors - the list is growing!
• Tokenization - With the tokenization approach, sensitive data is not stored in the SAP system, thus avoiding the need for PCI compliance audits.
• Stable and harmonized APIs (not dependent on PSP integration methods) to integrate non-SAP solutions. One solution that fits your whole landscape
• Multiple backend systems supported

For your finance department, there are many benefits to adopting this standard approach:

• Significant reduction in reconciliation effort of digital payments with open items because of continual process oversight
• Increased choice of digital payment options for customers and sales teams. Customers and the business with options to support various cards and digital payment methods.
• Insulates finance systems from changes as digital payment methods evolve - Always be up to date with the latest digital payment methods without changes to backend SAP systems

• Automated reconciliation - The manual effort of post-processing of bank statements items with open items is significant due to granularity changes between items, payments, and statements. When information granularity changes, SAP keeps the information flow stable to allow automated reconciliation of payments with open items.
• Provide additional business value at post-payment activities, such as advice handling​
• Provide the business with options to support various cards and digital payment methods. SAP service provides standard links to PSPs and digital payment methods, allowing all regions to participate in digital payment processing

The SAP digital payments add-on is compliant with the Payment Card Industry Data Security Standard (PCI DSS).

• Only PCI DSS-certified external partners (PSPs) process and store the original card data.
• The credit card number is replaced by the PSP with a token.
• The token is the only identification that is processed and stored in the SAP software.

For more information, see the PCI DSS Attestation of Compliance and SAP Trust Center.

The tokenized credit card details (including card holder) are stored on behalf of the consumer application.

• The deletion of data after it has been used has to be requested by the consumer application.
• The consumer application can read the card data to provide disclosure functionality.
• SAP digital payments add-on users have no read access to the data.
• No logging of read accesses from the consumer application is required.

The credit card token is stored in a mapping table (internal and external tokens).

• Deletion of data is triggered by the deletion API from the consumer application.
• SAP digital payments add-on users have no read access to the data.

The credit card token is part of any transaction processed and is stored in the SAP digital payments add-on.

• Automatic deletion ensures that the data is deleted after use.
• SAP digital payments add-on users have no read access to the data.

The SAP Digital Payments add-on enables you to connect SAP and non-SAP consumer applications with non-SAP Payment Service Providers (PSPs). Its function is to facilitate secure, end-to-end processing of digital payments.

You can connect to the PSPs shown via the SAP Digital Payments add-on, provided that you have a contract with the PSP in question.

Note

Which digital payment functions are delivered depends on the services consumed and delivered within the consumer application. Verify the scenarios covered with SAP in advance.

Note

Systems highlighted with an asterisk must be integrated via APIs. The remaining systems are integrated out-of-the-box.

SAP Digital Payments is a payment hub between PSPs and SAP components, solutions, or applications that process incoming credit card payments.

The scope item enables the integration between SAP S/4HANA Cloud and SAP Digital Payments, which allows for the use of credit card payment methods in SAP S/4HANA for incoming payments.

The complete process, from settlement using secure tokens via PSP advice to final bank statement, is covered and automated. Various payment service providers are supported.

The SAP Digital Payments add-on also supports what are referred to as external payments. External payments are payments made using external channels, such as online or mobile payment systems, rather than payment cards. This part is facilitated by best practice scope item 2LZ.

Depending on the PSP's functional scope, external payments can be implemented using either a one-step procedure (known as direct capture) where the payment is charged directly to the payer's account without any prior authorization, or a two-step procedure (known as charge with authorization) where the payment is first authorized at the payer's account before being charged.

The system landscape for payment scenarios using the SAP Digital Payments add-on is composed of three elements:

• Consumer Application

  Communication between the consumer application, such as SAP S/4HANA Cloud, and the customer account in the SAP Business Technology Platform works using REST Web services and is generally triggered by the consumer application.

• SAP Digital Payments Add-On on SAP Business Technology Platform

  The SAP Digital Payments add-on processes requests from the consumer application and routes them to the relevant external PSP. The add-on contains one core adapter and one adapter for each PSP. Please note that messages from the SAP Digital Payments add-on are issued in English only.

• Payment Service Provider

  The SAP Digital Payments add-on and external PSPs communicate using Web services. Most of this communication is synchronous.

The interaction between the system on a high level is as follows:

1. The consumer application sends a request to the SAP Digital Payments add-on.

2. Based on the details of the request, the SAP Digital Payments add-on determines the relevant PSP in a process called routing.

3. The request is then forwarded to the relevant PSP via its adapter where it is mapped into the appropriate format.

4. Connection to the PSP is established using the technical requirements of the PSP. Identification of the account at the PSP is achieved using the credentials provided by the PSP.

Several of the SAP S/4HANA Cloud consumer applications shown are out-of-the-box integrations with the SAP Digital Payments add-on. More consumer applications can be found on the SAP Help Portal.

The consumer application sends a request to the SAP Digital Payments add-on. Based on the details of the request, the SAP Digital Payments add-on determines the relevant PSP in a process called routing. The request is then forwarded to the relevant PSP adapter where it is mapped into the appropriate format. Connection to the PSP is then established using the credentials already maintained by the system administrator. The request is sent using the technical protocol required by the PSP.

SAP Digital Payments add-on is essentially a machine-to-machine communication without a dedicated user interface for the end user. In this regard, you need to use the SAP Digital Payments add-on in combination with a second scope item to facilitate card payments for this process.

One example is the 1S0 - Customer Payments Process scope item. If a customer wants to assign a credit card payment method to one of his items in the electronic bill presentment and payment, the two scope items need to be implemented to enable processing.

The same is true for other combinations when credit card payments should be, for example, integrated with external billing.

The complete process for the customer payment scenario can be described as follows:

1. The customer logs on to SAP S/4HANA Cloud for customer payments to add a new credit card to their account.

2. The SAP Digital Payments add-on connects to the PSP and the credit card entry UI opens. The customer enters credit card data.

3. The customer with credit card data is created at the PSP.

4. The credit card data is stored at the PSP and tokenized.

5. The tokenized credit card data is stored in the business partner record in SAP S/4HANA.

1. The customer logs on to SAP S/4HANA Cloud for customer payments to pay for open items by credit card.

2. The customer selects the open items that will be paid by credit card.

3. The amount of the selected open items is sent to the PSP with the credit card by the SAP Digital Payments add-on.

4. The amount is authorized by the PSP and the authorization number is provided to SAP Cloud for customer payments.

5. The authorization number is transferred to SAP S/4HANA FI-AR for further processing.

As an Accounts Receivable (AR) accountant, and after an invoice has been created, you can clear the open items of the invoice by initiating either the automatic credit card payment or creating the manual credit card payment in SAP S/4HANA Cloud.

In the payment run, you define for which customer(s) and with which criteria you want to schedule a payment run to clear open items. The system starts the payment run at the time you specified and generates a payment proposal.

You can check the payment proposal and execute the payment.

When the settlement run is done, the status of the settled credit card payments changes to In Transfer and the payment message is sent to the provider by Web services.

The service provider then forwards the message to the clearing house. The clearing house checks the request and sends a reply via the provider as to whether it will credit (or debit) the amount of the credit card payments bundled in the message to your account. This reply is automatically updated to the system in the form of the appropriate settlement status.

The following settlement statuses are available:

• Pending

  This status means that the message has been sent to the service provider and the system is waiting for confirmation of the settlement. If no problems occur, the settlement status normally changes to Accepted within a few minutes.

• Accepted

  This status means that the message has been successfully sent to the service provider, and from the service provider to the clearing house. The clearing house in turn has confirmed that it will settle the payment and sends this information to the system via the service provider.

• Rejected

  This status means that the clearing house rejects the settlement of the payment. The payment status in the Payment Monitor changes back from In Transfer to Ready for Transfer. In this case, contact the service provider or the clearing house to find out the reason for rejection, indicating either the provider ID or the clearing house ID.

After you have initiated the credit card payment, you want to inform your PSP that the payment should be made now. In the settlement run, credit card payments are grouped together in one settlement message. When the settlement run is done, the settled items are sent to the PSP by the SAP Digital Payments add-on. This settlement request is forwarded to the clearing house (acquirer bank) by the PSP.

The clearing house checks the request and sends a reply via the PSP as to whether it will credit (or debit) the amount of the credit card payments bundled in the message to your account. The system updates the settlement status.

The credit card advice contains items (taxes, charges) in the cash position that are not captured automatically. It acts like a memo, ensuring that the item is reflected in the current cash position.

1. The AR accountant in SAP S/4HANA requests the credit card advice from the PSP via the SAP Digital Payments add-on.

2. The PSP collects the information from the acquirer banks and sends advice data to SAP S/4HANA (via the SAP Digital Payments add-on).

3. The SAP Digital Payments add-on collects the information from the PSPs and maps it to the formats that the SAP S/4HANA system can understand.

4. The advice is posted in SAP S/4HANA and automatically updates the status of the settlements.

Note

This advice functionality is not provided by all PSPs. Check with your PSP for details and availability. For more information, see https://help.sap.com/viewer/product/DIGITALPAYMENTS/PROD/en-US.

This is standard FI-AR functionality for important bank statement details. The bank statement is usually very aggregated and is therefore not useful for clearing (no settlements, no individual transactions). That is why the advice functionality is so helpful for finance teams.

Sometimes the granularity of the data is different - the advice might not have all the details (coming later) or the advice might not reflect the settlement granularity. The AR accountant could run an automated clearing run (periodic job) to clear credit card cash clearing accounts at a later point in time (also standard FI-AR functionality).

1. The card acquirer transfers money to your account at your bank.

2. The bank statement is imported through the standard process (there is no change in the SAP Digital Payments scenario).

3. It shows you that the payment has been received. You see the incoming payment amount which corresponds to the total net amount of the clearing house statement.

1. A sales representative adds a customer's credit card to their account in SAP S/4HANA Cloud.

2. The SAP Digital Payments add-on connects to the PSP and the credit card entry UI opens. The sales representative enters the credit card data.

3. The credit card is stored at the PSP and tokenized.

4. The tokenized credit card data is stored in the business partner record in SAP S/4HANA Cloud.

1. A sales representative uses an existing credit card in a customer account in SAP S/4HANA Cloud to pay for open order items on the customer account.

2. The sales representative selects the open order items that are to be paid by credit card.

3. The amount of the selected open order items is sent to the PSP with credit card information via the SAP Digital Payments add-on.

4. The amount is authorized via the PSP.

5. The authorization number is provided to finance for further processing.

When the settlement run is done, the status of the settled credit card payments changes to In Transfer and the payment message is sent to the provider by Web services.

The service provider forwards the message to the clearing house. The clearing house checks the request and sends a reply via the provider as to whether it will credit (or debit) the amount of the credit card payments bundled in the message to your account. This reply is automatically updated to the system in the form of the appropriate settlement status.

The following settlement statuses exist:

• Pending

  This status means that the message has been sent to the service provider and the system is waiting for confirmation of the settlement. If no problems occur, the settlement status normally changes to Accepted within a few minutes.

• Accepted

  This status means that the message has been successfully sent to the service provider, and from the service provider to the clearing house. The clearing house in turn has confirmed that it will settle the payment and sends this information to the system via the service provider.

• Rejected

  This status means that the clearing house rejects the settlement of the payment. The payment status in the Payment Monitor changes back from In Transfer to Ready for Transfer. In this case, contact the service provider or the clearing house to find out the reason for rejection, indicating either the provider ID or the clearing house ID.

After you have initiated the credit card payment, you want to inform your PSP that the payment should be made now. In the settlement run, credit card payments are grouped together in one settlement message. When the settlement run is done, the settled items are sent to the PSP via the SAP Digital Payments add-on. This settlement request is forwarded to the clearing house (acquirer bank) by the PSP.

The clearing house checks the request and sends a reply via the PSP whether it will credit (or debit) the amount of the credit card payments bundled in the message to your account. The system updates the settlement status.

The credit card advice contains items (taxes, charges) in the cash position that are not captured automatically. It acts like a memo, ensuring that the item is reflected in the current cash position.

1. The AR accountant in SAP S/4HANA requests the credit card advice from the PSP via the SAP Digital Payments add-on.

2. The PSP collects the information from the acquirer banks and sends advice data to SAP S/4HANA (via the SAP Digital Payments add-on).

3. The SAP Digital Payments add-on collects the information from the PSPs and maps it to the formats that the SAP S/4HANA system can understand.

4. The advice is posted in SAP S/4HANA and automatically updates the status of the settlements.

Note

This advice functionality is not provided by all PSPs. Paymetric, for example, does not support this standard, but Stripe does. Check with your PSP for details and availability.

This is standard FI-AR functionality for important bank statement details. The bank statement is usually very aggregated and is therefore not useful for clearing (no settlements, no individual transactions). That is why the advice functionality is so helpful for finance teams.

Sometimes the granularity of the data is different - the advice might not have all the details (coming later) or the advice might not reflect the settlement granularity. The AR accountant could run an automated clearing run (periodic job) to clear credit card cash clearing accounts at later point in time (also standard FI-AR functionality).

1. The card acquirer transfers money to your account at your bank.

2. The bank statement is imported through the standard process (there is no change in the SAP Digital Payments scenario).

3. It shows you that the payment has been received. You see the incoming payment amount which corresponds to the total net amount of the clearing house statement.

Note

One-time payments with credit card are also supported. This means that the sales representative does not have to register a credit card beforehand, but can just use the credit card once to trigger payment for order items. In this case, the tokenized credit card is not stored in the business partner record in SAP S/4HANA.

The end-to-end process for the external billing scenario runs inline with the before-mentioned procedures. After the credit card is registered via the SAP Commerce Cloud, the payment is authorized via the PSP.

After the payment is captured, the SAP Digital Payments add-on sends on the digital payment advice to reconcile the information. The external bank statement is delivered from the PSP and imported into the SAP S/4HANA Cloud system. This clears the digital payments clearing accounts against the house bank accounts.

When looking at the complete process, starting in contract accounting for card payments, there is a similar picture as seen in the other process areas.

1. An external application registers a credit card with the SAP Digital Payments add-on.

2. The SAP Digital Payments add-on connects to the PSP and the credit card entry UI opens. The person responsible enters credit card data.

3. The credit card data is stored at the PSP and tokenized.

4. The external application hands over the open items together with the already set credit card information to the SAP S/4HANA Cloud system.

5. From Subscription Billing and Revenue Management, the authorization request and capturing of the amount is triggered.

6. After the payment is captured, the SAP Digital Payments add-on sends on the digital payment advice to reconcile the information.

7. The external bank statement is delivered from the PSP and imported into the SAP S/4HANA Cloud system. This clears the digital payments clearing accounts against the house bank accounts.

Depending on the SAP digital payments add-on component used, consumer applications can initiate the several services using the SAP digital payments add-on. In terms of the payment card processing that could be payment card creation, payment card payment authorization or payment card payment settlement. This functionality is covered by Best Practice Scope Item 1S2.

The SAP digital payments add-on also supports what are referred to as external payments. External payments are payments made using external channels, such as online or mobile payments systems, rather than payment cards. *This part is facilitated by Best Practice Scope Item 2LZ.

Depending on the PSP's functional scope, external payments can be implemented using either a one-step procedure, known as direct capture) where the payment is charged directly to the payer's account without any prior authorization, or a two-step procedure (known as charge with authorization) where the payment is first authorized at the payer's account before being charged.

• A user in a consumer application requests the creation of a payment card. This request is sent to the SAP digital payments add-on
• Based on settings made by the key user, the relevant PSP is determined and the appropriate Web user interface for entering the payment card details is opened.
• The user enters and saves the payment card data. The request is sent to the PSP, which saves the payment card data and creates a token as identification.
• This token replaces the payment card number. The tokenized payment card data is returned to the consumer application so it can be used.

• A user in a consumer application requests the deletion of a payment card. This request is sent to the SAP digital payments add-on.
• The system checks if this card is used in payment transactions which are not completed. Depending on the result the deletion at PSP is triggered or rejected.
• Based on the card token, the relevant PSP is determined and the request is sent to the PSP in the appropriate format. The result of the request is returned to the consumer application.

• A customer orders a product and wants to pay using a payment card. Approval for the amount of the transaction must be obtained from the card holder's bank.
• The consumer application sends an authorization request to the SAP digital payments add-on.
• Based on the card details, the relevant PSP is determined and the request is sent to the PSP in the appropriate format.
• The PSP then processes the authorization and returns the result to the consumer application via the SAP digital payments add-on.

• A customer cancels an order for which a payment card payment has already been approved.
• The consumer application sends an authorization cancellation request to SAP digital payments.
• Based on the card details, the relevant PSP is determined and the request is sent to the PSP in the appropriate format. The PSP processes the cancellation and returns the result to the consumer application via the SAP digital payments add-on.
• Cancellation of the authorization process is not supported for all payment card types and PSPs. In cases where it is not supported, the authorization remains until it automatically expires. If cancellation is not possible, the consumer application is informed.

• The consumer application triggers settlement runs periodically to settle authorized payment card payments.
• The authorization and card data are sent to the SAP digital payments add-on to be settled.
• Based on the card details, the relevant PSP is determined and the request is sent to the PSP in the appropriate format.
• The PSP then processes the settlement and returns the result to the consumer application via the SAP digital payments add-on.

• In case payment settlement is not possible, e.g. authorization is expired, the customer has the option to perform a direct capture.
• Depending on the PSP, SAP digital payments add-on initiates a direct capture. For example by sending an authorization request to the PSP in the appropriate format. If the authorization result is positive, SAP digital payments add-on directly charges the payment.

• The consumer application requests a refund when a card payment that has already been settled has to be paid back to the customer, for example in the case of a return. The request contains reference information about the payment to be refunded.
• The PSP then processes the refund and returns the result to the consumer application via the SAP digital payments add-on.

• The consumer application executes a report periodically to request advice details about the digital payments that have been processed.
• This request is sent to the SAP digital payments add-on. The add-on requests the advice details from all relevant PSPs.
• The advice details are merged and returned to the consumer application.

In the following example, the procedure on how authorized credit card payments are handled in Finance is demonstrated.

As a first step, payments are transferred to Financials Accounts Receivables by different channels, for example:

• Customer Portal
• Online shop
• Point of Sale via Sales/Distribution

These payments are represented as open item on Account Receivables Credit Card Clearing Accounts (G/L Accounts). The corresponding item on the Customer Account is automatically cleared against this. The payments contain credit card token and authorization data.

In order to settle authorized credit card payments, you can use the app Schedule Accounts Receivable Jobs. Pick the standard Credit Card Settlement option from the list and set your parameters for the scheduling or selections for company code and G/L Account.

This settlement report creates batches and sends them to the Payment Service Provider (via SAP Digital payments add-on). Thereby, items on the AR credit card clearing account will cleared and posted to a cash clearing account for credit cards.

Data provided in Digital Payment advice is used for the automatic reconciliation in Financials.

Note

Advice processing is not supported by all PSPs. For more information, see SAP Help.

Advice information will be requested using the Digital Payments Advice report from the Schedule Accounts Receivables Jobs in SAP S/4HANA Cloud. When the report is executed, the advice is requested via Digital Payments from PSP and the data will be processed into Accounts Receivables.

Items on the cash credit card clearing account will cleared and posted to a cash transfer for credit cards account (considering charges). The cash credit card clearing account is cleared automatically by a periodic G/L automatic clearing report.

Finally, the transfer of the collected money to a bank account is triggered via standard bank statement functionality. When importing external bank statements the corresponding bank statement items will be posted against cash credit card transfer account.

The clearing of the cash credit card transfer account is typically done manually depending on the reference information.

To work with the SAP Digital Payments add-on, there are three main pillars that need to be worked on. For the SAP S/4HANA Cloud environment, consider the following tasks:

• Set up the communication scenario (SAP_COM_0216) for SAP Digital Payments add-on.

• Activate the SAP Digital Payments add-on and payment scenarios.

Create a test account at the Payment Service Provider (PSP) of your choice and integrate it with SAP Digital Payments add-on.

• Set up a digital payments test tenant.

• Configure the PSP test account with the configuration UI. 

• Activate PSP.

• Define routing with the PSP determination UI.

• Define merchant mapping with the merchant mapping UI.

• Define periodicity to fetch advice data from PSP.

In the SAP Business Technology Platform cockpit, perform the necessary steps to set up your SAP Digital Payments add-on tenant. Your SAP Digital Payments add-on license allows you to subscribe to one test subaccount to the application (SAP Digital Payments Add-On Demo) and one productive subaccount to the application (SAP Digital Payments Add-On Prod).

You must perform the following steps:

• Create a subaccount (SaaS tenant) in your global account (GA).

  Once you have access to your SAP Business Technology Platform global account, you need to create subaccounts to use applications and services on the SAP Business Technology Platform. The SAP Digital Payments add-on is delivered with two tenants: a test tenant for testing integration and a productive tenant for productive usage. We strongly recommend that you create and configure two subaccounts to distinguish between the usages.

• Configure the Identity Provider (IdP) and set up authentication.

  Once you have created your subaccounts, you need to establish mutual trust between your subaccount and your IdP. You also need to define two user groups in your IdP, one for administrators, and one for key users, so that after the configuration of role collections in the SAP Business Technology Platform cockpit, the users assigned to these groups can access the SAP Digital Payments add-on.

• Subscribe the SaaS tenant to the SAP Digital Payments add-on.

  You need to subscribe to the SAP Digital Payments add-on in your subaccount in the SAP Business Technology Platform cockpit.

• Create role collections and assign them to user groups or users.

  Once you have subscribed to the SAP Digital Payments add-on application, you need to create role collections and assign roles to users or user groups in the SAP Business Technology Platform cockpit so that you can manage access to the application.

• Enable Machine-to-Machine (M2M) communication.

  To enable M2M communication for the applications or systems that consume the SAP Digital Payments add-on, for example an SAP S/4HANA system, you need to create a service instance of the service broker that provides access to the APIs. You have to create this service instance in the Cloud Foundry environment. 

For more information, refer to the Administration Guide on the Help Portal:SAP Help

To enable M2M communication for your consumer applications, you need to create an instance of the service broker that provides access to the APIs. To authorize communication between your consumer application and the SAP Digital Payments add-on, client credentials are required. These can be obtained by creating a service key for the service instance you created. The client credentials and other authorization-related details are stored in the service key. The service keys are permanently stored in the Cloud Foundry environment of your subaccount. The data provided in the service key created, such as clientid or clientsecret, will be needed to establish the communication arrangement between your consumer application and the SAP Digital Payments add-on.

Open your created instance, go to the Service Keys section, and create a new service key. This generates unique credentials for you to access the service.

Once you have the key, you need to pick up the following fields from this key - downloadUrl, uploadUrl, clientid, clientsecret, and url.

Once you have set up your account, you need to activate the adapter(s) for the PSP(s) you want to use with the SAP Digital Payments add-on. Each PSP has its own dedicated adapter.

To activate adapters, access the Payment Service Provider Status UI using the URLs below, and provide the appropriate credentials.

• For your test account, go to:

  https://<subdomain>.demo-digitalpayments-sap.cfapps.eu10.hana.ondemand.com/pspStatus/index.html

• For your productive account, go to:

  https://<subdomain>.digitalpayments-sap.cfapps.eu10.hana.ondemand.com/pspStatus/index.html

When you access the UI, you will see a list of active/inactive PSPs. Select the row of the inactive PSP you want to activate and choose Activate.

The status then changes to Active and the PSP is ready for use.

To set up the connection between the SAP Digital Payments add-on and a PSP (here for example, Stripe), you configure at least one Stripe account (merchant ID) using the Stripe Configuration UI.

The URLs to access this UI have the following formats:

• Test account:

  https://<subdomain>.demo-digitalpayments-sap.cfapps.eu10.hana.ondemand.com/stripeConfiguration/index.html

• Productive account:

  https://<subdomain>.digitalpayments-sap.cfapps.eu10.hana.ondemand.com/stripeConfiguration/index.html

You have to make settings for the PSP determination based on your PSP partners and your company's business needs. Use the URLs provided by your system administrator to do this.

The URLs have the following format:

• The URL for test account is as follows:

  https://<subdomain>.demo-digitalpayments-sap.cfapps.eu10.hana.ondemand.com/pspDetermination/index.html

• The URL for productive account is as follows:

  https://<subdomain>.digitalpayments-sap.cfapps.eu10.hana.ondemand.com/pspDetermination/index.html

You must maintain at least one row and specify at least the PSP and the merchant. Note that you can only choose PSPs with whom you have a contract, and merchants that are configured at the relevant PSP's adapter.

If you are working with only one PSP you need only one row.

If you are working with two or more PSPs, you need to define under which conditions which PSP is to be used. You do this by defining the PSP determination using various parameters. Each set of parameters (row) is classified as a routing. If you are working with two PSPs you need a minimum of two rows, three PSPs three rows, and so on. You can add rows using the New Routing  button.

The sequence numbers of the routings work as a ranking from top to bottom. The system analyzes the parameters maintained, starting with the routing with sequence number 1. If the routing with sequence number 1 does not provide a match, the system analyzes the next row, and so on. As soon as a match is found, the appropriate PSP is used. If no match is found, an error message will appear stating that no PSP could be determined.

The processing of payment advice information is based on data provided by PSPs. The SAP Digital Payments add-on fetches this data from the PSPs periodically, stores it, and provides it to the consumer application when the application requests it. A special status is assigned to each transaction to ensure that the transaction is not processed more than once.

You have to run jobs to fetch the payment advice data from the PSP. Although it is possible to fetch the payment advice information from the PSPs on demand, in general jobs are scheduled to run periodically.

The job scheduling UI varies from one PSP to another. The UIs for PayPal and Stripe are provided by SAP. The URLs to access these UIs have the following formats:

• PayPal:

  https://<subdomain>.digitalpayments-sap.cfapps.eu10.hana.ondemand.com/paypalAdvice/index.html

• Stripe:

  https://<subdomain>.digitalpayments-sap.cfapps.eu10.hana.ondemand.com/stripeAdvice/index.html

Payment service providers issue accounts, which you can use to group transactions according to your business needs. The SAP Digital Payments add-on supports multiple accounts per PSP within a single tenant. These PSP accounts are referred to as merchant IDs within the SAP Digital Payments add-on.

When using multiple merchant IDs, you must ensure that the payment processes are handled correctly and that transactions are represented correctly in the consumer application.

Each digital payment transaction is linked to one specific merchant ID. During configuration, you have to define rules to enable the SAP Digital Payments add-on to determine which PSP and merchant ID are used for each transaction. For more information on this, refer to Setting Up the Payment Service Provider Determination.

Depending on the PSP, payment cards may be assigned to a single merchant ID or to all merchant IDs. If a single merchant ID is specified during registration of a payment card, all payment processes using that card will use that merchant ID. If a payment card is assigned to all merchant IDs, the merchant ID used for a particular process is determined using the PSP determination rules in the first step of the process, such as payment authorization, and used throughout the process.

The merchant ID used for a particular process is determined using the PSP determination rules in the first step of the process, such a payment initiation, and used throughout the process.

To ensure that merchants are used correctly and efficiently throughout your business, use the merchant ID aliases for both card payments and external payments. These aliases enable you to do the following:

• Represent merchant IDs in consumer applications
• Define your own descriptions irrespective of PSP naming conventions
• Tokenize PSP accounts
• Combine accounts from different PSPs
• Use digital payment advice processing (if your PSP supports this)

To create and maintain your merchant ID aliases, you use a special configuration UI.

The URL to access this UI has the following format:

https://<subdomain>.digitalpayments-sap.cfapps.eu10.hana.ondemand.com/merchantMapping/index.html

All PSP accounts (merchant IDs) of all activated PSPs are displayed on the UI. You can define merchant aliases for the merchant IDs according to your needs.

In the SAP S/4HANA Cloud system, verify whether you have fulfilled the prerequisites for the SAP Digital Payments add-on to work.

• It is mandatory that the SAP Digital Payments add-on (scope item 1S2) is active.

  To verify that it is active, go to Manage Your Solution → View Solution Scope.

• If the scope item is not active for your system, request activation by filing a Business Continuity Plan (BPC) incident using the following ticket component:

  XX-S4C-OPR-SRV

If the activation of the scope item is performed, the following actions must be performed in the SAP S/4HANA Cloud system:

• Integration - Technical Setup
• Configuration - Items for Digital Payments

In the Manage your Solution app, activate the SAP Digital Payments add-on in the SAP S/4HANA Cloud system. In the Search field, enter SAP Digital Payments add-on and select the entry from the search results.

Choose to activate the SAP Digital Payments add-on and pick the scenarios that fit your requirements. This scope item supports six scenarios. Each scenario requires you to complete the steps for this scope item to activate, configure, and test, as well as to activate other, dependent scope items.

Create a communication system for use in the communication arrangement first. The communication arrangement in the SAP S/4HANA Cloud system defines all relevant information for the interface, containing the communication system and inbound authentication.