Mondu, a B2B payments company, has launched a new payment solution: Digital Trade Account. Mondu’s new product offering enables B2B merchants and marketplaces to provide their business customers with a trade account, allowing them to consolidate several purchases within a pre-set period into one statement.
Buyers settle their bill at the end of the pre-set period according to pre-aligned net terms. While buyers pay according to the net terms, Mondu pays out the merchants or the marketplace after every purchase according to a pre-aligned payment schedule. This may mean a next-day payout, and Mondu protects the merchants from default, credit and fraud risks.
Mondu also manages the payment collection from the buyers according to the payment schedules and takes on the operational burden from reconciliation to debtor management.
Its new solution enables merchants to capitalise on the economic benefits of offering a Trade Account to business customers – without the typical financial and operational burden.
Malte Huffmann, co-founder and co-CEO of Mondu, explained the need for the trade account solution: “There is a clear opportunity for merchants to increase their sales by making frequent purchasing easier. Neither sellers nor buyers want to spend time issuing and paying numerous invoices.
“By creating the Digital Trade Account, we’re answering a real need in the market and delivering further on our commitment to make payments a positive experience and business growth lever. Merchants who offer a trade account can double spend per customer.”
Saving time and reducing errors for buyers
Mondu explained that verticals including car parts, food and beverages, construction materials, and office supplies, often have high buying frequencies where replenishing stock based on demand happens frequently.
In these verticals, keeping track of separate orders and reconciling each purchase with the correct invoice is a manual and error-prone process for many companies.
Relying on Mondu’s credit engine, merchants can offer new and existing customers a trade account, enabling them to buy as often as they want within a pre-assigned purchasing power.
At the end of each period, purchases are aggregated and summarised in a single statement, which can be paid with net terms agreed between the merchants and Mondu. This saves time, reduces errors, as well as makes payments next-level convenient for buyers. The enhanced convenience has the potential to double customer spending.
Mondu also recently announced its suite of B2B payment services will be offered to more customers in Europe through payment specialist Acquired.com’s network. The company is also collaborating with composable commerce platform Spryker, where Mondu will be available as a payment partner to offer flexible payments to its B2B buyers.