Deutsche bank is working with Viennese fintech Credi2 to develope a white label buy now, pay later product for uptake by online retailers and e-commerce marketplaces.
Under the proposition, Deutsche Bank will fund BNPL sales for retailers, evaluating the payment- and fraud risk in real time and incorporating the claims arising from the respective purchase agreement into its own risk portfolio. Retailers will be provided with a dashboard to digitally track both returns and partial payments of transactions.
Deutsche Bank's head of merchant solutions Kilian Thalhammer says the bank want to create a consumer-friendly alternative to existing BNPL offers.
"Unlike most BNPL offers, the white-label approach ensures that retailers retain full control over transactions with their new and existing customers," he says.
Purchase on account, which has been dominant in Germany for decades, has firmly established itself among the top three payment methods in terms of the number of transactions in e-commerce, alongside wallet payments and direct debits.
“The trend clearly points in the direction that purchase on account and installment purchase is here to stay,” says Thalhammer.
The first pilot projects are expected to start in Germany by the end of the year he adds.