Santander launches multinational BNPL product
Santander teams with Allianz, Two on the solution
Santander Corporate and Investment Banking has launched a business-to-business product via a new buy-now, pay-later solution.
Madrid-based Santander CIB tapped global trade credit insurance company Allianz Trade and B2B payments platform Two for the venture, which aims to provide large, multinational corporations the ability to instantly defer payments at checkout, according to a Santander release.
“We wanted to provide an end-to-end global solution with a cutting-edge risk-management solution and competitive rates,” Ignacio Frutos, global head of receivables at Santander CIB, told Bank Automation News. “The solution is instant and seamless which makes it really powerful for a firm dealing with huge sales volumes across different countries.”
Using a single API integration, Santander finances upfront payments and credit terms to buyers while Paris-based Allianz protects the seller against potential non-payment risk. The agreement also provides sellers with multi-currency support to ensure payments are made and received globally, Frutos added.
Through Allianz Trade’s APIs, the company assesses credit requests, allowing Santander to help make financing decisions instantly, the release said.
The new solution allows Santander to cover all BNPL products and complements its business-to-consumer product Zinia, which launched in January 2022 by Santander’s Digital Consumer Bank in areas such as Germany and the Netherlands, according to Santander’s website.
The partnership between the three companies will give businesses assurance that sellers’ income forecasting will not be thrown off by non-payment, Frutos told BAN.
“Enabling businesses to maintain their payment habits within 30 or 60 days of their invoices, in an e-commerce environment, will be a big differentiator for sellers, while all concerns about non-payment risk are now removed and their cash flow is preserved at all times,” he said.
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