Deutsche Bank develops its own buy now, pay later solution for e-commerce and digital marketplaces

Deutsche Bank is developing its own BNPL (buy now, pay later) solution for invoice and instalment purchases in a collaboration with Vienna-based fintech Credi2.

The white-label – own brand – solution for online merchants and e-commerce marketplaces in Germany can be flexibly integrated into the payment process. Pilot projects are scheduled to start this year.

Kilian Thalhammer, Head of Merchant Solutions, Deutsche Bank: "Together with Credi2, we want to create a real alternative to existing BNPL offerings. Unlike most BNPL offerings, merchants retain full control over transactions with their new and existing customers through the white label approach," says Thalhammer. A special merchant portal enables them to digitally track both returns and partial payments of the transactions. In addition, merchants and marketplaces benefit from a liquidity advantage, as the bank pays out the purchase price to the merchant's account immediately upon confirmation of order shipment. Deutsche Bank assesses the risk of non-payment and fraud in real time and includes the receivables arising from the respective sales contract in its own risk portfolio.

Christian Waldheim, co-CEO, Credi2: "With Deutsche Bank and Credi2, a major international bank and fintech are working together successfully. Through our white-label solution, banks, merchants and marketplaces can offer our modern and flexible payment solution under their own brand – this ensures customer loyalty and increases sales.”

Invoice purchasing, which has dominated in Germany for decades, has firmly established itself among the top 3 payment methods in terms of the number of transactions in e-commerce, alongside wallet payments and direct debits.

Juniper Research projects annual global BNPL transaction volume growth of more than 30 percent through 2026.

Thalhammer: "The trend is clearly pointing in the direction that invoice and instalment buying is here to stay.”

www.db.com

www.credi2.com

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