An irrevocable and independent undertaking of an Obligor Bank to pay or incur a deferred payment obligation and pay at maturity a specified amount to a Recipient Bank after successful electronic matching of data. Intended to reduce the perceived inefficiency and cost of paper based payment methods (eg Letters of Credit) whilst mitigating the risk o [..]

Bank payment obligation (BPO) is a class of settlement solution in international supply chain finance. Bank payment obligation is an irrevocable undertaking given by an obligator bank (typically buyer’s bank) to a recipient bank (usually seller's bank) to pay a specified amount on an agreed date under the condition of successful electronic mat [..]