Traxpay provides dynamic discounting and reverse factoring solutions to the corporate clients, empowering them manage the cash flows flexibly
A Deutsche Bank retail branch in Munich. (Credit: Ich fahre hummer/Wikipedia.)
Germany-based investment bank Deutsche Bank has invested in the Frankfurt-based fintech Traxpay, in a bid to use the fintech’s platform technology to expand its supply chain finance offering.
Traxpay provides dynamic discounting and reverse factoring solutions to the corporate clients, empowering them to manage the cash flows flexibly.
With the Deutsche Bank investment, Traxpay broadens its circle of shareholders and intends to attract more banks to join its platform.
Deutsche Bank trade finance and lending global head Daniel Schmand said: “The current crisis acts like a catalyst to the market. Numerous companies are reviewing their strategic relations with their suppliers and are identifying substantial potential in terms of financing.
“Recent developments we’ve seen as a result of COVID-19 show how important liquidity is for our clients. With Traxpay we have an experienced partner with a good track record. We can work with them to offer our clients further solutions in this area,” Schmand says, adding: “Our answer to the question ‘fintech or bank’ is: ‘fintech AND bank’”.
Traxpay platform will benefit buyers and sellers with flexible payment terms
The current investment from Deutsche Bank would help Traxpay strengthen its position in Europe.
The firm is also encouraging other banks join as investors and partners to further expand the platform, while maintaining its existing relationship with other banks.
According to Traxpay, buyers and sellers using its dynamic discounting solution would benefit from the flexible payment terms for goods and services, and get a discount when they decide to pay.
In addition, retailers and suppliers are allowed to use the Traxpay platform to decide whether to settle a payable earlier and receive a discount in their individual case or receive an interim financing offered by a bank.
Currently, the company processes volumes of more than one billion euros each year.
Recently, Deutsche Bank has introduced its first digital employee, named Blue Bot ‘Yi’ in a customer-facing role in its corporate banking division in China.