Deutsche Bank has been working with Vienna-based fintech , Credi2 for the development of a white-label buy now, pay later (BNPL) solution, targeting online retailers and e-commerce marketplaces.

Announced on Wednesday, the two companies are targeting to first pilot the product in Germany by the end of this year.

“Together with Credi2, we want to create a real and consumer-friendly alternative to existing BNPL offers,” said Deutsche Bank’s Head of Merchant Solutions, Kilian Thalhammer.

“Unlike most BNPL offers, the white label approach means that retailers retain full control over transactions with their new and existing customers.”

The platform can be flexibly added to the payment process of online merchants. It will offer a portal for the tracing of returns and partial payments of transactions.

“Our white label solution can be used internationally: banks, retailers and marketplaces can offer this modern and flexible payment solution under their own name – this ensures customer loyalty and increases sales,” Christian C. Waldheim, the Co-CEO of Credi2 explained.

Big Banks Are Jumping into a Growing Industry

BNPL solutions enable consumers to receive a small credit line when making online purchases. The merchant receives the money from the lender, while the consumer pays it back in a few interest-free installments.

The German banking giant is jumping into the BNPL space when demand for such services is skyrocketing. According to Juniper Research, the BNPL transactions are expected to grow at a rate of 30 percent annually till 2026.

In Germany, the prospects of such services are immense as purchase on an account has been dominant in the country for decades. It remains one of the top three payment methods for online transactions, alongside wallet payments and direct debits.

“The trend clearly points in the direction that the purchase on account and installment is an issue that will remain,” Thalhammer added.

Deutsche Bank has been working with Vienna-based fintech , Credi2 for the development of a white-label buy now, pay later (BNPL) solution, targeting online retailers and e-commerce marketplaces.

Announced on Wednesday, the two companies are targeting to first pilot the product in Germany by the end of this year.

“Together with Credi2, we want to create a real and consumer-friendly alternative to existing BNPL offers,” said Deutsche Bank’s Head of Merchant Solutions, Kilian Thalhammer.

“Unlike most BNPL offers, the white label approach means that retailers retain full control over transactions with their new and existing customers.”

The platform can be flexibly added to the payment process of online merchants. It will offer a portal for the tracing of returns and partial payments of transactions.

“Our white label solution can be used internationally: banks, retailers and marketplaces can offer this modern and flexible payment solution under their own name – this ensures customer loyalty and increases sales,” Christian C. Waldheim, the Co-CEO of Credi2 explained.

Big Banks Are Jumping into a Growing Industry

BNPL solutions enable consumers to receive a small credit line when making online purchases. The merchant receives the money from the lender, while the consumer pays it back in a few interest-free installments.

The German banking giant is jumping into the BNPL space when demand for such services is skyrocketing. According to Juniper Research, the BNPL transactions are expected to grow at a rate of 30 percent annually till 2026.

In Germany, the prospects of such services are immense as purchase on an account has been dominant in the country for decades. It remains one of the top three payment methods for online transactions, alongside wallet payments and direct debits.

“The trend clearly points in the direction that the purchase on account and installment is an issue that will remain,” Thalhammer added.