· Merchants can add a “pay later” option in their check-out (online) or offer flexible payment conditions to their corporate customers.
· Customers can benefit instantly from payment terms : the solution leverages credit risk decisions in real time from Allianz Trade and combines Fintecture’s expertise in payment.
· Trade Credit Insurance is embedded and automated into the payment solution. Merchants can develop their business without being exposed to non-payment risks.
Allianz Trade, the world leader in trade credit insurance and Fintecture, a fast-growing fintech specialized in B2B payment solutions, partnered to develop a new B2B Buy Now Pay Later (BNPL) solution dedicated to the French market. Through this partnership, Allianz Trade and Fintecture will provide B2B French merchants with a digital and automated “Secured Payment Terms” solution, available for all purchasing contexts, both online and offline.
Securing B2B transactions in an uncertain economic context
Corporate buyers require specialized payment terms solutions as the purchasing amounts are higher, approvals are more complex and most payments are made on due date. Offering flexible payment conditions is key to achieve high conversion and retention rates.
However, the risk of non-payment remains an important threat on the merchant's financial solidity. In the uncertain current economic context, Allianz Trade expects business insolvencies to rise by +40% in 2023 in France. Business insolvencies in France could thus exceed their pre-Covid level by +3%, and get close to 60,000 cases in 2023.
Providing the most competitive deferred payment solution for B2B
Based on this observation, Allianz Trade and Fintecture partnered to develop an new B2B BNPL solution. This “Secured Payment Terms” product will help sellers to be competitive, by providing their B2B customers with a digital deferred payment solution, while securing their growth. It combines Allianz Trade’s more than 100 years of experience in trade credit insurance and credit intelligence on +80 million companies worldwide, and Fintecture’s expertise in payment based on +385 000 payers and an experience proven with large corporates.
Customers can benefit instantly from payment terms, as the solution leverages credit risk decisions in real time from Allianz Trade. Allianz Trade’s credit insurance is embedded into a frictionless, automated payment pathway, offering instant confirmation of eligibility to the buyer and easy programming of the payment on due date. In case of non-payment, Fintecture orchestrates reminders prior to handing over the debt collections and indemnification process to Allianz Trade.
“After participating in their recent fundraising round, the launch of this new B2B BNPL solution is a new step in our partnership with Fintecture. Combining the very best of our two firms, we are convinced that we will help many corporates to develop their online and offline sales by offering deferred payment without being exposed to non-payment risk. KYC and instant risk analysis are major challenges for e-commerce, and we are glad to help the ecosystem breaking through this barrier thanks to our credit risk expertise and unique database”, explains Mickael De Sa, CDO of Allianz Trade in France.
A seamless payment experience, regardless of the sales channel
This new solution is available for all purchasing contexts. Concretely, merchants can add a “pay later” option in their check-out (online) or offer flexible payment conditions to their corporate customers by sending a payment link by email or by providing a QR code to be scanned in-store. The payer accesses via this link to a digital payment terminal, and can benefit from an instant payment delay offering the same payment experience.
It not only allows merchants to offer payment terms at no cost to their clients, but also to benefit from a cost effective solution without having extra fees due to factoring cost usually applied in BNPL.
"The merchant delegates his outstanding amounts to us, via a mechanism that secures his working capital and weighs less on his gross margin. Besides, our knowledge of payers allows us today to adapt the purchase path and activate the relevant anti-fraud checks” comments Faysal Oudmine, CEO of Fintecture. "Behind this technicality, our customers are looking for simplicity of use. We are able to transpose our proven experience with Ecommerce players into a seamless payment experience, whatever the sales channel, which is key to address all B2B opportunities and answer order-to-cash challenges of our customers”.