ABN Amro is reshaping the B2B payment era with the launch of its innovative ‘Pay Later’ feature. This debtor management pilot, developed in partnership with B2B tech firm Two, aims to tackle a persistent challenge in online transactions: trust.
Under this initiative, ABN Amro guarantees payments and takes over debtor management for merchants, allowing business clients to pay via online invoices without the risk of non-payment.
Why It Matters
Recent research by the 2022 Market Monitor highlights the urgency of this solution. While 90% of companies place online orders, many hesitate due to concerns about delivery reliability and the hassle of upfront payments. Alarmingly, one in ten businesses views advance payment requirements as a significant obstacle.
Pay Later directly addresses these issues by allowing buyers to settle invoices within 30 days of receiving goods. This added flexibility encourages confidence between buyers and sellers, ultimately boosting online trade.
A Step Toward Embedded Finance
Carsten Bittner, ABN Amro’s Chief Technology Officer, emphasized the broader implications of this launch. “With Pay Later, we are pioneering a new era of embedded finance by increasing trust and flexibility in online B2B transactions. This underscores our commitment to innovation and our dedication to providing solutions that align with our customers’ evolving needs.”
A Win for Merchants and Buyers
This pilot is more than a payment tool, it’s a trust-building mechanism. Merchants gain peace of mind with guaranteed payments, while buyers enjoy flexibility and reduced financial risk. The feature bridges a critical gap in the rapidly evolving B2B e-commerce ecosystem.
If successful, Pay Later could transform how businesses handle online transactions, paving the way for embedded financial services.
Let us know your thoughts on how this could impact B2B commerce!