Nowadays, the traditional methods of payment have shifted from documentary L/C to remittance basis, using especially open accounts. Open account terms are most advantageous for the buyer because goods are shipped and delivered before payment is due, so there is a possibility that a foreign buyer will not be able to pay. Under the documentary L/C basis, the bank provides an irrevocable payment undertaking to the seller, which is the most complex and costliest of traditional payment arrangements. The purpose of this paper is to determine the applicability of TSU·BPO in settlement of international trade through case studies. The international business community has been seeking to change paper Bill of Lading to electronic Bill of Lading that is fast to issue, transmit and process. Various attempts at electronic payment are offered to achieve these benefits and these were evident in the Sea Docks project, CMI Rules for Electronic Bills of Lading, Bolero project and TradeCard. Nevertheless, attempted trade electronics as in the case of the electronic payments systems failed. In the light of such failures to change payment platforms, SWIFT has devised a new electronic payment method called the Bank Payment Obligation, on SWIFT’s Trade Service Utility platform. The BPO is a new payment method based on data matching that can be used for risk mitigation and financing.
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