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Allianz Trade has partnered with Mastercard to expand trade credit insurance for business-to-business travel payments, aiming to improve cashflow and reduce payment risk for online travel agencies (OTAs).
The enhanced Allianz Trade pay solution will allow issuers using Mastercard Virtual Card Numbers (VCNs) to offer credit terms to OTAs with insurance protection against non-payment. If an OTA fails to settle its obligations, Allianz Trade will manage the collections process and indemnify the issuer where required.
The solution uses actuary.aero’s payment data intelligence platform to provide real-time transaction-level risk assessment and insurance underwriting within the payment flow.
Allianz Trade global head of e-commerce François Burtin says the partnership combines the company’s global risk intelligence with Mastercard’s travel payments infrastructure.
“Thanks to our global intelligence network… and our deep expertise of the travel sector, we are in a strong position to assess non-payment risk from travel agencies and to give issuers the confidence to grow their business,” François says.
Mastercard senior vice president, B2B Travel, Chiara Quaia says the solution will help issuers participate more confidently in B2B travel payments.
The companies say the partnership is expected to improve customer retention, capital efficiency, lending confidence and commercial opportunities for issuers operating in the travel sector.
