ABN AMRO Tests New 'Pay Later' Solution for Businesses

​​ABN AMRO has initiated a pilot program called Achteraf Betalen, or "Pay Later," aimed at enhancing payment options for its business clients. This feature allows merchants to offer their customers the convenience of online invoicing, facilitating quicker transactions without the fear of non-payment.

With the "Pay Later" service, ABN AMRO ensures that payments are guaranteed while managing the debtor accounts for merchants. This initiative was created in partnership with Two, a technology firm specializing in B2B payment solutions.

A recent Market Monitor study from 2022 indicates that a significant 90% of companies (n=2,032) engage in online ordering, but many seek greater assurance regarding the goods received. The requirement to pay upfront is viewed as a hassle by 10% of respondents, and 9% expressed concerns about the trustworthiness of merchants. The new "Pay Later" option allows buyers to pay after receiving their products, with a 30-day payment window.

Carsten Bittner, Chief Technology Officer at ABN AMRO, stated that this launch marks a significant shift toward Embedded Finance, aiming to improve trust and flexibility in B2B online transactions. The introduction of this service reflects the bank's focus on innovation and its responsiveness to the changing demands of its business customers.