It was finally embarrassing for me to explain that we can't send notificatoin when pending status is generated....!
It was probably more embarrassing to explain to them that this has been base functionality for years and that you had not tested the end to end customer/vendor experience.
It's obviously essential to notify the shop owner that a client had a banking problem, if you want to help him to resolve it or to pay his order in another way.
I would expect a serious e-commerce store owner to review their orders and not expect emails to run their business. In the days of poor internet speeds and limited access - that might have been the way - but today I am stunned that a professional store is expecting to manage their orders based on email activity.
Proposing a software update is fine if such an update enhances the platform - but VM has operated like this since VM2 - a search of the forums will reveal much about this change.
If you have not shown your client the VM order list and how to refresh a web page - then maybe you can start there.
However:- There is no one stopping you from creating your own customisation to meet your client's needs.
Or you could ask the development team for a quote to develop the option for you.
Currently:
A status of "P" is set by VM as soon as an order is saved to the database and is seen as a technical step between an order being saved and a payment attempt by the customer. As you note - this step does not trigger any email to anyone.
The detail that is shown in the PayPal configuration regarding "Pending transactions" is related to a response from PayPal which states that they have "seen" the transaction and they are "handling it" - it is not yet a completed payment. This can trigger emails.
It's obviously essential to notify the shop owner that a client had a banking problem
There is no evidence that the customer had any banking problem - they may have just decided not to complete a payment for whatever reason.
That said, the store owner can review orders via the VM admin and decide what to do with those in a pending state.