- ABN AMRO introduces ‘Pay Later’ feature in partnership with Two, enhancing B2B payment flexibility.
- The initiative addresses payment concerns and streamlines online B2B transactions.
What happened: New Solutions for B2B Payments
ABN AMRO, a leading financial institution based in the Netherlands, has launched a pilot program named ‘Pay Later’ in collaboration with B2B tech company Two. This new feature allows business clients to make payments through online invoices, offering a 30-day payment term post-receipt of goods. The ‘Pay Later’ service not only guarantees payment to merchants but also takes over debtor management, thereby reducing the risk of non-payment and increasing trust in online B2B transactions .
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Why it is important
The collaboration between ABN AMRO and Two on ‘Pay Later’ is significant for several reasons. Firstly, it addresses the concerns of businesses that require assurance about delivered goods and the reliability of merchants, as highlighted by research from the 2022 Market Monitor which shows 90% of companies are seeking such assurances . Secondly, by allowing buyers to settle bills after receiving goods, ‘Pay Later’ eliminates the nuisance of advance payments and mitigates doubts about merchant reliability. This initiative is particularly important in the context of global B2B payments, which are projected to reach $1.7 billion by 2025, emphasizing the growing demand for embedded finance solutions . Furthermore, the ‘Pay Later’ feature aligns with the increasing trend of digital wallet adoption in B2B payments, which is expected to grow significantly from USD 4.2 billion in 2023 to USD 8.2 billion by 2028 . This development underscores ABN AMRO’s commitment to innovation and its dedication to providing solutions that meet the evolving needs of its customers in the digital economy.
