Traxpay joins DNI Initiative

Traxpay which joined ITFA early 2021 has decided to engage with the wider trade finance community on trade digitization and MLETR adoption through our DNI Initiative.

Markus Rupprecht, CEO of Traxpay explains the membership decision: “Our Traxpay mission is to make supply chains more resilient. A core component of this is sufficient working capital. Key to that is ensuring liquidity. Many companies believe that a liquidity ratio of at least 60% is necessary to ensure going concern in times of crisis. The trend of treasury departments is moving towards liquidity management in the entire supply chain and not only in their own company. Supplier liquidity is strengthened by supply chain finance (SCF) instruments. Empirical studies show that the use of SCF instruments by as many participants as possible increases the resilience of the supply chain and leads to disproportionate improvements in earnings for all those involved in the value creation processes. ITFA’s DNI Initiative is of great importance for our mission for two main reasons: a) exchange and collaboration with partners to offer a compelling suite of value adding products and b) creating the necessary legal framework for these.”

Markus Wohlgeschaffen, Head of Product at Traxpay adds: “Supply chain finance tools like Dynamic Discounting and Reverse Factoring have even gained importance in the recent years, not only due to the corona pandemic. The combination of suitable SCF instruments is the prerequisite to achieve the goal of CFOs and treasurers for a 360° liquidity optimization which is considered a comparative competitive advantage! Traxpay offers the possibility to combine various working capital/SCF solutions. As Head of Product at Traxpay, I strive to constantly develop new digital Supply Chain Finance products such as our recently launched Digital Forfaiting Tools and Digital Guarantees. ITFA’s DNI initiative is of similar importance to previous industry initiatives, e.g. ICC/GSCFF’s Standard Definitions for SCF Techniques or SWIFT’s BPO, which I have had the privilege of contributing to as a supply chain finance practitioner over the past 37 years. I am very happy to contribute to the DNI initiative together with old friends and hopefully new ones.”

“I am delighted to welcome Traxpay to this global industry effort. Digitising trade documents such as payment guarantees, and negotiable instruments is high on the agenda of both corporates and banks. But it must be done in the most interoperable way to avoid creating more digital islands. That’s exactly the mission of the DNI Initiative which we achieve by introducing advanced e-original technologies as per ITFA’s dDOC specifications.”, says André Casterman, Chair Fintech Committee, ITFA.

The ITFA Fintech Committee now regroups a total of 49 players which are listed on our website. Our Fintech Initiatives aim to address two market-level ambitions: DNI Initiative focuses on digitising trade documents and negotiable instruments in corporate-to-bank relationships, whilst TFD Initiative aims to help trade originators adopt the automated originate-and-distribute model by partnering with institutional investors. Our advocacy task force (TERA) aims to promote the integration of digital options such as MLETR-based e-originals within national laws.