Two, the business-to-business (B2B) e-commerce payments platform, and Allianz Trade, the trade credit insurance provider, have formed a partnership to grow the ‘buy now pay later’ (BNPL) finance market for small and medium-sized enterprises (SMEs) and their clients.
The companies have combined Allianz Trade’s experience in trade credit insurance with Two’s B2B BNPL technology.
This provides businesses with real-time data, enabling them to make automated trade credit decisions, and creating a seamless B2B e-commerce experience.
Fixing online B2B trade
Innovation in both digital payments and the provision of online finance to support it have progressed in recent years, making global commerce more connected than ever.
Despite being in the same century as blockchain technology, electric vehicles, and quantum computing, B2B sellers have not yet been able to enjoy the same instant and easy payment experiences as consumers (B2C).
They are still facing last century’s challenges of using paper cheques and receipts, long transaction times for cross border payments, credit assessments on their buyers, and tedious manual back-end processes.
“Thanks to our partnership with Allianz Trade, merchants get conversion rates of up to 40% on B2B purchases, instant credit decisions, approval rates of over 90%, and buyer credit limits of £100,000,” Stavros Tamvakakis, cofounder at Two, said.
“Business buyers get the payment terms they need plus a seamless purchasing experience.”
Enrique Elias, Head of Expansion at Two, added: “Allianz Trade is a scalable partner with a deep history in B2B.
“This partnership represents a unique opportunity to leverage decades of localised data with a global reach to solve B2B in the UK and beyond.”
“We have a role to play in helping the business community and our clients prepare for this new world of online trade, and to be the enabler of the new b-commerce market,” Sarah Murrow, CEO of Allianz Trade in the UK and Ireland, said.
“As the market leader of trade credit insurance, we are uniquely positioned to offer best in class digital trade credit solutions created for BNPL providers.
“We are excited about our partnership with an innovative player like Two.”
Fixing b-commerce through instant trade credit assessment online
As part of their partnership, Allianz Trade assesses credit requests through its API (application programming interface), which integrates both companies’ respective internal e-commerce and underwriting systems, helping Two to make financing decisions on the spot.
“E-Commerce is booming in B2B and traditional payment methods don’t allow online sellers and marketplaces to grasp the full potential,” François Burtin, global head of transformation at Allianz Trade, said.
“Allianz Trade has developed the assets to secure B2B online trading by providing real-time credit decisions and insurance anywhere in the world.”
Fintech companies are seeking out more efficient and secure methods to enable B2B growth.
Two is helping fix b-commerce by helping B2B players trade online without the operational complexity and the credit-fraud risk
Meanwhile, finance industry players such as Allianz Trade are responding with innovation in the provision of both online and offline access to cover, whether through brokers, direct clients or finance platforms.