Business Model Innovation through startup collaboration - Pastpay B2B BNPL Qorus-Infosys Finacle Banking Innovation Awards 2024

The core concept of MBH Bank's innovation model is investing in promising fintech solutions and collaborating with them to bring new products and services to our customers rapidly

From startup investment to successful pilot:

MBH Bank’s startup incubator, MBH Fintechlab had invested in and owned a part of Péntech, a startup focused on creating a fully digital, online factoring process. As factoring is not very well known in Hungary, they recognized the opportunity for creating a B2B BNPL product that could also be a payment method. MBH Bank was keen to test out the BNPL model and the market, as it is part of our strategy for creating a payment ecosystem. Therefore, MBH Incubator invested from its equity capital with better capital requirements than the market which made it possible to develop the solution and start validating it. This mutually beneficial relationship allowed the bank to finance the validation process without any reputational risk, as it was running under a different brand than the bank’s. Later, MBH Bank also stepped in with refinancing to provide capital for the operation in the HUF market. As the reporting went to the bank from this point, the validation process became even easier.

Currently, PastPay’s deferred payment service (B2B BNPL) is available to SME clients of MBH through BUPA – the SME platform of MBH – and it will be integrated into and offered by the MBH Bank brand later on. However, since MBH was involved in this process from conception through validation, by the time the bank is ready to integrate it, only a decision needs to be made, as the operation and risks are already known and understood.

About PastPay’s B2B BNPL :

The essence of the innovation is that once PastPay enters a contract with the merchant, the deferred or installment payment option becomes immediately available during the purchase process, so there is no need to wait for a long approval process.

When a purchase is made, whether online or through direct sales, the customer is assessed in a matter of seconds by PastPay's proprietary intelligent risk algorithm to decide whether they are eligible for deferred payment and how much they can spend.

In addition to fully digital sales, the process can be integrated into any other type of ordering process, from hybrid solutions to manual order management.

PastPay seamlessly integrates into merchant webshops, appearing as a payment option during checkout. Customers can select from various deferred payment terms, repaying PastPay within the chosen period. Integration is simple: 1. Plug-and-play solutions for major eCommerce platforms, 2. API integration for custom-built webshops

PastPay extends beyond online sales, supporting direct, telephone, and email transactions. The PastPay portal offers merchants real-time insights into: Financing volume, Customer data, Order numbers, Invoice progress, Repayment statuses, Transaction details

This comprehensive solution enables merchants to implement B2B BNPL across their entire multi-channel sales process, covering all business use cases efficiently.