Bank Payment Obligations (BPO)

The world trade volumes have seen a startling increase in open account transactions over the recent years. Today, already more than 80% of the total world trade volume is settled by clean payment. This impressive ratio is expected to grow even more in the future. As a consequence, banks are compelled to offer their corporate clients products that support fully automated processing, as well as cost savings combined with payment assurance and financing options. Bank Payment Obligations (BPO) is the answer.

What can you expect?

The Bank Payment Obligation constitutes an irrevocable undertaking of a Bank (usually the bank of the importer) in favour of the bank of the exporter to pay at sight or to pay at maturity. It is subject to the electronic comparison of trade data between the banks via a so-called Transaction Matching Application (TMA) such as, for example, SWIFT-TSU. For the first time, banks are now in a position to offer an enriched payment instrument that meets the demands of their clients in the open account space. BPO benefits include:

  • Assurance of payment and mitigating risks in international trade for buyers and sellers alike
  • Speed, reliability, convenience
  • Reduced costs and improved accuracy
  • Enhanced risk management
  • Access to flexible financing
  • Reduction of risks in the supply chain

How does it work?

What’s in it for you?

  • Access to a large client base due to UniCredit's global reach and unique position in the CEE region
  • The leading bank in the area of supply chain finance and, as such, a financing partner to support client liquidity needs
  • A sparring partner for the implementation of BPO products in your institution
  • A test partner for SWIFT-TSU test cases


Ms. Kati Busse
Trade Product Management

Mr. Davide Sant
Trade Products & Services Italy

Ms. Mihaela Canciu
Global Transaction Banking CEE


Additional information