How Allianz Trade pay speeds up the order-to-cash process
Allianz Trade pay is a platform that automates the entire order-to-cash process while preserving B2B relationships. Instead of limiting buyers to immediate payment, it enables sellers to offer flexible credit terms that support healthy cash flow on both sides of the transaction. But it goes far beyond facilitating deferred payments. The platform now provides real-time risk assessment at the point of order validation, instant credit insurance coverage, cash collection services and indemnification if needed.
The results following the launch exceeded our expectations. After just one year, Allianz Trade pay had intermediated over 117,000 transactions representing US$475 million in gross merchandise value (GMV) across 2,000 sellers and 24,000 B2B buyers. To put that in perspective, platforms that have been in the market for five or six years set their sights on US$590 million in GMV as an ambitious target. Our clients consistently highlight four key advantages to the platform: seamless API integration, our high acceptance ratios based on our confident credit decisions, the broad geographical coverage of buyers and our high risk appetite.
Early adopters of Allianz Trade pay have come from IT distribution, food & beverage, retail, and home equipment – industries investing heavily in their webstores as new sales channels. One client in IT distribution needed an alternative to credit cards as a payment method for buyers on its webstore. By integrating Allianz Trade pay, the company could offer 60-day payment terms as a competitive advantage. Furthermore, we deployed fraud checks though open banking to match individual purchasers with their companies. The entire credit risk assessment happens in real time within seconds, creating a smooth checkout experience.
Besides payment terms and the risk of fraud, preserving the customer relationships is another particular concern in B2B e-commerce. Business deals are built on connections that are typically forged offline, and remaining respectful of this dynamic throughout the order-to-cash process while protecting against non-payment risk is key. For France-based hardware retailer Mister Matériaux, Allianz Trade pay provides essential support to keep up with the competitive construction sector. In addition to enabling 30-day deferred payment, which is vital for Mister Matériaux’s customers, the platform integrates concrete criteria such as seasonality and the pace of construction projects to tailor buyer assessments to this particular industry.
We designed specific alerts and a button to make Allianz Trade pay more visible to buyers, leveraging the strength and inherent trust that comes with the Allianz brand. However, we can white-label the platform for companies that would like to use its services with their own branding. One digital B2B financing platform was able to onboard a large retailer with almost 30,000 sub-sellers attached to it, supported by Allianz Trade pay but integrated as one brand. Despite its intricate structure, the financing platform was able to get instant credit rating on over 100,000 buyers, offering a smooth user experience.
Expanding to meet B2B e-commerce needs
This anniversary, we’re happy to announce exciting new features that transform Allianz Trade pay into a complete end-to-end order-to-cash solution. We’ve recently added “know your buyer” (KYB) verification, which enables sellers to identify and validate buyers from our database of 400 million companies, checking everything from address and sector to individual purchaser information. It includes advanced fraud checks, with signature validation and company legitimacy scoring – helping our clients mitigate risk before transactions even begin.
Last year, we announced our partnership with Stripe, which enables sellers to receive payments directly to their accounts without manual intervention. Through Stripe, Allianz Trade pay handles the follow-up, sending payment links to buyers and managing payment transfer. This is particularly valuable for multinational companies (MNCs) managing cross-border payments, which previously required multiple payment service providers. The system also sends reminders ahead of payment due dates and escalates communication after a given number of days past due. Then, at the end of the maximum extension period defined by the seller, it triggers the claims process. These features are already available in France and the UK & Ireland, and will be rolled out to further markets soon.
Supporting the evolving B2B e-commerce market
B2B e-commerce is in the midst of yet another significant transformation. More companies are moving from marketplaces to their own webstores, and accounts receivable platforms are gaining market share with enterprise clients. We’re also seeing more banks interested in providing digital point-of-sale financing.
As Allianz Trade pay moves into its third year, we’re looking forward to rolling out our complete order-to-cash solution to new markets. We’re also launching a renewed client portal with an enhanced user experience, improved performance dashboards and faster navigation – all based on feedback from our clients. The new portal will allow buyers to view incoming invoices and select which ones to pay, making the entire experience more interactive and user-friendly. With Allianz Trade pay, we’re proving that digital transformation doesn’t have to mean taking on more risk, nor sacrificing the relationships that make business partnerships work.
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