StanChart completes bank payment obligation transaction under URBPO

Transaction was fully automated through Straight2Bank.

According to a release, Standard Chartered announced today that it has completed a trade finance transaction with the Bank Payment Obligation (BPO) under the Uniform Rules for BPO for PTT Polymer Marketing, a leading polymer sales and marketing company in Thailand.

The BPO transaction was established between PTTPM in Thailand and Polymer Marketing DMCC in Dubai on 24th of June and has since matured on the 15th of July.

This end-to-end BPO transaction was fully automated through Straight2Bank, the Bank’s fully integrated online banking platform, under the URBPO that was launched in April and went live in July 2013.

The URBPO is a new set of industry-wide standards in supply chain finance for international trade settlement. The rules were developed jointly by the International Chamber of Commerce (ICC) and SWIFT, based on standardised messaging and advanced transaction data matching.

Standard Chartered worked closely with both organisations, playing a significant role in developing the rules. With the URBPO, Standard Chartered clients can now enjoy the assurance of global acceptability in addition to the existing benefits of BPO transactions including enhanced risk management, reduced time and cost through faster paperless processes, and the payment certainty matching that of Letters of Credit.

Commenting on the transaction, Mr. Saravut Damrichob, Vice President, PTT Polymer Marketing Co., Ltd., said:
“Getting paid on time has always been a key requirement for us as an exporter.

Standard Chartered has brought to our organisation the new Bank Payment Obligation instrument, allowing us for the first time ever, to process transactions in a fully automated mode.

BPO provides us with the flexibility of open account trade combined with the payment certainty of Letters of Credit.”