Berlin, Germany: Frankfurt-based Banking-as-a-Service provider Raisin Bank and Berlin-based B2B payment specialist Mondu are launching a new payment solutions partnership. The partnership enables Mondu to offer Buy-Now-Pay-Later (hereafter “BNPL”) solutions for online B2B merchants and marketplaces, allowing their customers to pay through online invoice purchasing on flexible terms. Within the framework of the new cooperation, Raisin Bank ensures the regulatory requirements for factoring and also provides payment and account services.

Needed but hardly offered: BNPL for business customers

Purchasing on account is the most popular payment method in the B2B sector. However, much like the rest of the B2B payments space, it has not benefitted from digitalization. This presents a growing challenge for B2B customers, who are looking to reliably and conveniently purchase goods and services while reducing risks and costs for retailers.

BNPL offers advantages for buyers and merchants

Flexible payment terms are becoming increasingly important for business clients. With inflation and economic uncertainty on the rise, small- and medium-sized enterprises are looking for more flexibility with regard to planning their liquidity and settling their purchases. At the same time, vendors are looking for solutions that ensure higher sales, better conversion rates, and operational efficiency. Checkout solutions that offer seamlessly integrated digital payment applications, like Mondu's BNPL solution, are therefore growing in demand.

Shared expertise for smooth payment processing

Mondu’s BNPL solution is directly integrated into the checkout process of merchant portals whereby B2B customers can freely choose flexible payment dates. If a business customer decides to use one of the payment methods offered by Mondu, Mondu coordinates the processing of the payments as well as associated services with its full-service solution.

As a fronting bank, Raisin Bank handles this process and ensures compliance with all regulatory and supervisory framework conditions. The jointly implemented BNPL business has already received a positive response from merchants in the German market. The offering by Mondu and Raisin Bank will also allow for instalment payments in the future. An expansion into other countries of the European Union is planned in the near future.

Commenting on the collaboration, Philipp Povel, co-founder of Mondu, says: “Thanks to Raisin Bank, we have a competent and strong partner with many years of experience by our side. With the bank's digital services behind us, we are revolutionizing the market for B2B payments and offering small- and medium-sized enterprises the financial flexibility they so urgently need right now.”

“The partnership with Mondu strengthens our position as a Banking-as-a-Service provider for fintechs and other financial service providers,” adds Dr. Andreas Wolf, Chief Commercial Officer at Raisin Bank. “Mondu's business model has great potential, and we are happy to help realize it with our services. Processes around factoring and BNPL are an essential part of Raisin Bank's service portfolio, both in the B2C and B2B sectors.”