# Payment Initiation
source: https://developer.mastercard.com/payment-initiation-api/documentation/index.md

## Overview {#overview}

Managing business‑to‑business (B2B) card payments often involves fragmented systems, manual steps, and inconsistent standards across issuers, networks, and platforms. These challenges increase processing complexity, delay settlements, and reduce transparency for both Debtors and Creditors.

The Payment Initiation API provides a secure and standardized way for issuers for initiating commercial card‑based payments to suppliers. By automating payment initiation, the API reduces manual efforts and enables faster, more efficient B2B payment workflows.

Built on ISO 20022 standards, the Payment Initiation API supports multiple payment flows, including both Straight Through Processing (STP) and non‑STP models. It is **card‑agnostic** and **brand‑neutral** , allowing organizations to use **physical or virtual cards** without adapting integrations for specific card types or networks. By enabling the exchange of enriched payment and remittance data, the API improves transparency, accelerates settlement, and simplifies reconciliation.
Note: The Payment Initiation product page can be found [here](https://developer.mastercard.com/product/commercial-direct-payments/).

## How it Works {#how-it-works}

![Diagram showing how the Debtor Agent submits a payment instruction on behalf of the Debtor to CDP through the Payment Initiation API. CDP routes the instruction through Mastercard Gateway or an Acquiring Partner Gateway, the Creditor receives the payment instruction, and CDP sends status updates back to the Debtor.](https://static.developer.mastercard.com/content/payment-initiation-api/uploads/how-it-works.png)

1. The Debtor Agent submits a B2B card payment initiation request using the Payment Initiation API.
2. Commercial Direct Payments (CDP) receives the request and references the Supplier Directory to determine the Creditor's configured payment routing and remittance preferences.  
   Note: The Supplier Directory is a registry that stores the Creditor's preferences for payment routing and remittance delivery.
3. CDP applies routing rules and prepares the payment instruction for acceptance and processing.
4. The payment request is forwarded through CDP toward the [Payment Acceptance API](https://developer.mastercard.com/payment-acceptance-api/documentation), carrying enriched payment and remittance information for the Creditor side.

### Parties involved {#parties-involved}

* **Debtor** (ISO term for Buyer): The entity making payments to a Creditor to procure goods or services.
* **Creditor** (ISO term for Supplier): The entity receiving payments from a Debtor for selling goods or services.
* **Debtor Agent** (ISO term for Issuer or Accounts Payable platform): The entity acting on behalf of a Debtor to submit payment instructions. Debtor Agents include procure-to-pay networks, banks, and other specialty players, such as accounts payable automation companies.
* **Creditor Agent** (ISO term for Acquirer or Accounts Receivable platform): The entity acting on behalf of a Creditor to retrieve and process payment instructions. Creditor Agents include procure-to-pay networks, banks, and other specialty players like accounts receivable automation companies.
* **Commercial Direct Payments**: CDP is a Mastercard service that automates, streamlines, and secures B2B card payments by enabling fast, transparent, and data‑rich payment exchanges between Debtors and Creditors.
* **Customer Service Provider**: An entity that performs program service that is an agent of the customer, receives or otherwise benefits from program service, whether directly or indirectly, performed by such service provider.

### Outcome of use {#outcome-of-use}

* CDP's Payment Initiation API helps Debtor Agents with real-time B2B card payment initiation and payment routing without having to worry about how Creditors might want to receive the card payments.
* The API supports authorization of the B2B card payment transactions in a straight through processed manner basis how Creditor is set up in the Supplier Directory of CDP for accepting STP payments.
* CDP also helps Debtor Agents initiate both STP and non-STP B2B card payment transactions in a single integration point.
* Rich remittance data formats supported in CDP's Payment Initiation API, helps the Debtor Agents send the high-quality remittance data to the Creditors for reconciliation.   

For a more detailed view of Payment Initiation use cases, refer to the [Use Cases](https://developer.mastercard.com/payment-initiation-api/documentation/use-cases/index.md) section.

## Good to Know {#good-to-know}

* **Onboarding information:** Onboarding is done through creating an account on [Mastercard Developers](https://developer.mastercard.com/) and activating Sandbox and Production project credentials.
* **Testing information:** A delivery and integration manager assists with mapping customer IDs (keys) during implementation.
* **Backwards-compatibility:** This API service is backwards-compatible.
* **User responsibilities:** Users must complete an API evaluation or commercial agreement before integrating with the Payment Initiation service. After agreement execution, a delivery manager is assigned, and the user must configure an [event notification URL](https://developer.mastercard.com/payment-initiation-api/documentation/use-cases/event-notifications/index.md) to receive API notifications.
* **Region availability:** This API service is available globally; however, certain use cases are restricted to specific regions and will expand over time.

## Next Steps {#next-steps}

Now that you have an understanding of what the service does, you can proceed to the [Quick Start Guide](https://developer.mastercard.com/payment-initiation-api/documentation/quick-start-guide/index.md) to quickly get started, or to the [API Basics](https://developer.mastercard.com/payment-initiation-api/documentation/api-basics/index.md) section for details on authentication and encryption.