Integrating with SAP Digital Payments Add-On

Let's first review the purpose of SAP Digital Payments Add-On before you see how it integrates with Subscription Billing.

The SAP digital payments add-on provides integration with various payment providers, enabling businesses to securely process customer payments for subscription-based services. In relation to SAP Subscription Billing, the digital payment add-on facilitates the collection of recurring payments from subscribers, supporting the monetization of subscription services and ensuring a seamless payment experience for customers. It allows businesses to manage payment processing for their subscription billing, providing a convenient and reliable way to handle recurring payments.

With the integration of the SAP digital payments add-on with SAP Subscription Billing, the following processes are available:

• Tokenization of credit card data to ensure fulfillment of the Payment Card Industry Data Security Standard.
• Validation of credit card tokens.
• Settlement of credit card payments.

By default, settlement of credit card payments for subscriptions is triggered by a back-end system that is also integrated with the SAP digital payments add-on (SAP S/4HANA or an external back-end system).

1. SAP Subscription Billing to SAP digital payments add-on:

   Subscription Billing shares customer credit data with the digital payments add-on to register the customer for payment processing. Then SAP digital payments add-on provides a unique payment token back to the SAP Subscription Billing system, which can be used for future payment transactions.

2. SAP Subscription Billing to SAP S/4HANA:

   SAP Subscription Billing provides billing information, including payment tokens, to SAP S/4HANA for the creation of invoices and financial processing.

3. SAP S/4HANA to SAP digital payments add-on:

   SAP S/4HANA initiates authorization and settlement processes with the SAP digital payments add-on system to process customer payments. The SAP digital payments add-on system provides authorization status and payment/refund status updates back to SAP S/4HANA for reconciliation and financial reporting.

The integration of these SAP Systems allows for a seamless end-to-end subscription management process, enabling businesses to effectively monetize their subscription-based services while ensuring a positive customer experience.

Now that you have a better understanding of how SAP Subscription Billing is integrated with SAP systems, let’s move on to the next unit to focus on the integration of other SAP and non-SAP systems.