UPS Capital has announced the launch of a new online business-to-business payment service that it claims offers a secure alternative to traditional letter of credit (L/C) payments.

The developers claim the new service will reduce risks and provide faster payment in secure transactions in more than 200 countries and 150 currencies.

L/C substitute

The subsidiary of the New York listed transport and logistics giant, UPS, is working with Payoneer, a cross-border payments company to deliver the new service.

It is based on a secure, digital platform to conduct and perform business-to-business transactions protected by licensed escrow.

As well as substituting L/Cs, the developers claim the service offers a secure alternative to other payment methods, including cash on delivery, credit card and payment-in-advance.

Benefits

Orders shipped within the worldwide UPS network receive a 10 per cent discount on the escrow fee.

UPS Capital reckons the payment service will increase transaction speed, claiming a transaction on the new system can generally be set up online in a matter of minutes whereas an L/C may take 10-14 days to initiate.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.