Santander CIB, Allianz Trade, and Two have joined forces to create a Buy Now, Pay Later (BNPL) service for large multinational corporates in what they describe as the first partnership of its kind.

The new business-to-business (B2B) service will give corporate organisations the opportunity to access instant deferred payments at checkout.

B2B e-commerce payments platform Two will provide a single API integration, while Santander’s corporate and investment arm will finance upfront payments to sellers and credit terms to buyers.

Allianz’s global trade credit insurance division, Allianz Trade, said it would protect the “whole value chain" against non-payment risk, including credit risk.

The organisations say that while the large corporate segment is currently undertaking major online projects to grow B2B e-commerce sales and improve margins, they "lack the instant and seamless payments technology to facilitate B2B sales at a global level" and that the new partnership will foster the development of online B2B trade.

The move comes after Allianz Trade and Two partnered earlier this year to launch a B2B BNPL solution for UK SMEs.

Allianz Trade and Santander have also been working on "large BNPL projects".

“The fact that buyers have to use personal or corporate credit cards is still hindering B2B transactions,” said Ignacio Frutos Lopez, global head receivables, Santander CIB. “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 adding a major game changer: all concerns about non-payment risk are now removed, and their cash flow is preserved at all times.”

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