A Bank Payment Obligation (BPO) is an irrevocable agreement to pay issued by your customer's bank (the Obligor Bank) to your bank (the Recipient Bank, i.e., SCB) upon verification that your trade data meets your customer's conditions as specified in the BPO.
• The trade data that you provide confirms your performance meeting your customer's conditions. This typically includes commercial, transport, insurance or certification information, which you must present to SCB to check against the conditions specified in the BPO.
A BPO is similar to a Letter of Credit (L/C) because the party obligated to pay is your customer's bank, which must pay after confirming your company has complied with all the pre-set conditions. Unlike an L/C. however, a BPO relies on an electronic platform (aTransaction Matching Application, or TMA) to verify the information, as opposed to physical checking of L/C documents by bank personnel. A BPO supports the sending and receipt of information electronically rather than sending original physical documents.
Rest assured of BPO payment when you export to risky markets. Electronic processing is faster and easier than an L/C.
Export with greater ease and speed. Receive and verify Bank Payment Obligations (BPOs) electronically.