German banking group Deutsche Bank is developing its own white-label BNPL solution for invoice and instalment purchases in partnership with Austrian fintech firm Credi2.

Deutsche Bank’s new BNPL offering, which can be integrated into the payment process, is aimed at online merchants and e-commerce marketplaces in Germany.

Credi2 is serving as the technology partner in this initiative.

The firms hope the start the pilot testing of the new offering in 2022 itself.

The new solution will enable online retailers and e-commerce marketplaces to access a dedicated portal, which can be used to track both returns and partial payments of the transactions.

Additionally, the bank will pay the purchase price to the merchant when the order is shipped giving clients a liquidity advantage. 

Deutsche Bank head of merchant solutions Kilian Thalhammer said: “Together with Credi2, we want to create a real alternative to existing BNPL offerings. Unlike most BNPL offerings, merchants retain full control over transactions with their new and existing customers through the white label approach.”

Credi2 co-CEO Christian Waldheim said: “With Deutsche Bank and Credi2, a major international bank and fintech are working together successfully. Through our white-label solution, banks, merchants and marketplaces can offer our modern and flexible payment solution under their own brand – this ensures customer loyalty and increases sales.”

“The trend is clearly pointing in the direction that invoice and instalment buying is here to stay,” Thalhammer noted.