TangoTrade has launched an assured payment solution that functions as a digital letter of credit (L/C) but does not require the participation of major banks.

Payment Assurance claims to provide an effective option for importers and exporters to reduce payment risks involved in international trade.

Secure payment

Under Payment Assurance, exporters can ship with the confidence that payment is assured and will be transferred to their bank account upon shipment confirmation

Importers meanwhile can engage with suppliers around the world, knowing that their payment is secure until their goods are actually shipped.

The Payment Assurance platform functions as an escrow device, ensuring that suppliers and buyers get what they have both agreed to.

Integrated platform

Businesses can access the platform via integrations with freight forwarders and even business-to-business marketplaces that also use TangoTrade. The developers say Payment Assurance can be easily integrated into a variety of partner platforms.

Importers and exporters manage the entire transaction online, including negotiating shipment terms and processing payment, thus eliminating much of the manual effort found in traditional L/C transactions according to the developers.

They say the solution will save time and money and drastically reduce the L/C rejection rates reported by banks.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.