Mondu and Raisin Bank enable BNPL for business clients


The success of buy-now-pay-later in consumer markets has prompted payment companies to test the concept in commercial payments where it has the potential to solve the working capital and cash flow issues with SMEs. The initiatives provide much-needed competition to commercial cards which have been under attack for high interchange fees.

This week, Frankfurt-based Banking as a service provider, Raisin Bank has teamed up with Berlin-based B2B payments company, Mondu for launching a payment solution which will offer Buy-Now-Pay-Later (BNPL) solutions for online B2B merchants and marketplaces.

The press release said that ‘Purchasing on the account is the most popular payment method in the B2B sector’ but also noted that ‘much like the rest of the B2B payments space, it has not benefited from digitalization’.

In BNPL space last month, Thunes partnered with Clearpay for services.

The flexible payment methods are becoming increasingly important for the business clients and factors contributing are ‘inflation and economic uncertainty’ and the press note says that the SMBs are looking for ‘more flexibility with regard to planning their liquidity and settling their purchases’. This topped with vendors looking for solutions that provide ‘higher sales, better conversion rates, and operational efficiency’.

As per the statement, Mondu’s BNPL will directly integrate with the checkout process of the merchant portals where the clients can choose payment dates and if the service is of one of the payments methods provided by Mondu, it will ‘coordinates the processing of the payments as well as associated services with its full-service solution’.

On the Raisin Bank part, being the fronting bank it will handle the process and ‘ensures compliance with all regulatory and supervisory framework conditions’.

As noted, the service in future will also allow for instalment payments and expansion in other nations of the EU is on the horizon.

Mondu is a financial services company providing BNLP services to B2B clients while Raisin Bank AG offers Banking-as-a-Service solutions mostly in the processing of loan portfolios and the receivables of selected borrowers.