Deutsche Bank is working on a white label buy now, pay later solution for online retailers and e-commerce marketplaces in partnership with Viennese fintech Credi2
Deutsche Bank announced that the new BNPL project created in cooperation with Credi2 would pilot in Germany by the end of the year. Although many instalment plans are on the market today, the white label product will be a consumer-friendly alternative to existing solutions.
In particular, Deutsche Bank will fund BNPL sales for retailers, evaluate the payment and fraud risk in real-time, and incorporate the arising claims into its risk portfolio. Besides, retailers will get a dashboard to track returns and partial payments. The white-label approach shall give retailers 100% control over transactions with their new and existing customers.
Another advantage is bank liquidity. Retailers and marketplaces will receive money faster as the bank pays out the purchase price. A full amount goes to the merchant’s account immediately upon confirmation of order shipment.
“Purchase on account” has been a dominant payment method in Germany for decades. It ranks among the top three e-commerce payment means in terms of transaction numbers. The other two are wallet payments and direct debits. This trend motivated Deutsche Bank to facilitate onboarding in the partial payment industry.
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