HSBC has launched of point-of-sale (POS) financing for business-to-business (B2B) transactions, a first-to-market banking solution in Hong Kong that enables B2B sellers to offer extended terms of payment to their business and institutional customers on their online platforms.
Using application programming interfaces (APIs), a seamless and fully embedded financing option will be created at the check-out page of banking clients’ B2B e-commerce platforms. The bank will pay its commercial clients in one business day after they receive a purchase order. This solution, the bank notes, will significantly enhance efficiency and convenience for the sellers who can reconcile their sales in a timely manner and optimize their working capital.
From early June 2023, the solution will be available on FreightAmigo, a digital freight logistics platform, to enable its business users, the bank says, to “ship now, pay later”. When a company places shipment booking on FreightAmigo, they can opt to pay on extended terms at no extra cost. “This innovative form of receivables finance,” the bank notes, “helps FreightAmigo uplift the digital customer experience and seek new clientele by providing greater payment flexibility.”
“The last few years mark an accelerated shift to online buying and selling of goods and services,” says Aditya Gahlaut, the bank’s managing director, co-head of global trade and receivables finance for Asia-Pacific. “Our brand new embedded POS financing solution will support our clients to maximize sales on their online platforms while maintaining better control over their cashflow.
“As people have higher expectation of having near-instant purchase experience, this API-enabled solution will unlock new sales opportunities for our clients by offering an additional payment option and almost immediately available finance to improve acceptance of their customers.”