Germany’s Ratepay Partners With PayPal Checkout

Ratepay, the buy now, pay later (BNPL) arm of Italian payments group Nexi, has been named PayPal Checkout’s exclusive payment-by-invoice partner in Germany.

As the company said in a news release Thursday (March 31), this means online merchants in Germany who use PayPal Checkout will be able to offer their customers Ratepay’s white label payment by invoice.

With this arrangement, Ratepay will take over the processing and default risk, with the buyer in the background. This connection is made possible through Ratepay’s new Payment API 2.0, which lets Ratepay payment methods “be integrated flexibly, scalably and easily with online payment service providers such as PayPal.”

Read more: Nexi Payments Could Unload BNPL Unit Ratepay

Ratepay said white-label payment-by-invoice enjoys higher trust among consumers than branded payment-by-invoice and leads to the highest conversion rate and the lowest purchase abandonment rate. This is mainly because it keeps consumers in the familiar shop environment and does not take them out of the merchant checkout.

“Buy now, pay later payment methods, which include payment by invoice, have become a global megatrend,” said Nina Pütz, Ratepay’s chief executive officer. “We are proud to help even more merchants achieve stronger growth through our white label invoice purchase via our new interface.”

Added Jörg Kablitz, managing director of PayPal DACH: “We are pleased that our merchants can also offer customers [with no] PayPal accounts a ‘buy now, pay later’ solution with Ratepay’s purchase account. Customer demands for online retail are constantly increasing. A smooth payment process is a critical part of the customer journey.”

Last month, reports emerged that Nexi was considering a sale of Ratepay, which it purchased in 2020 when it acquired Nordic payments firm Nets. Ratepay is valued at more than $1 billion and offers payment options that eCommerce merchants can provide to customers.