Hokodo and Citi join forces to power payments on new renewables marketplace, Covento
- Collaboration marks the first step in new and improved payment solutions on B2B marketplaces
- Working with Covento, the Citi and Hokodo partnership is supporting processes needed for a low carbon economy
- Covento serves the needs of renewable energy field engineers, technicians, site managers, and procurement professionals
London, 27 April 2023 – A leading provider of B2B payment solutions, Hokodo, and global financial services firm Citi today announced their collaboration to power payments for Covento, a first-of-its-kind renewable energy marketplace.
The strategic collaboration will deliver a best-in-class and frictionless B2B Buy Now, Pay Later (BNPL) solution that enables large global businesses to offer trade credit on e-commerce platforms and marketplaces.
The e-commerce operation to benefit from this B2B payment solution is Covento, a B2B marketplace for renewable energy spare parts and tools that has been created by Vestas, the global leader in sustainable energy solutions.
Covento’s stated aim is to transform the cumbersome buying processes for spare parts within the renewable energy space, that are currently fragmented and lacking in transparency.
According to Covento, failing to provide buyers with B2C basics like pricing, delivery information and tracking, and product imagery were top of the list during their initial market research and customer interviews. The company also saw that counterintuitively, by staying out of the payment flow, traditional marketplaces still need to agree on individual payment terms and add each supplier in their systems to facilitate the transactions. Covento believes this defeats the goal of consolidation.
Covento provides a central online solution to connect buyers and sellers of spare parts across various renewable energy technologies, delivering transparency for prices, product availability and delivery tracking. Covento’s search algorithm enables a buyer to search for a part with whatever information they have available (any ID or even just generic searching) and be able to find the part with all relevant offers from all Covento suppliers. Covento is also now enabling supplier consolidation by the innovative payments solution, getting into the payment experience (i.e., Covento is in the funds flow) and separating buyer pay-in with supplier pay-out.
By joining forces, Citi and Hokodo have created a payment experience for Covento’s customers that includes:
- API integrated customer registration, with instant credit scoring and limits setting
- Automated assessment and processing to allow trade credit in under 24 hours
- Flexible deferred payment options thanks to Hokodo’s B2B Buy Now, Pay Later
- Collections and credit management
This unified marketplace was made possible through combining the strength of Vestas’ global network, Citi’s capabilities and Hokodo’s digital trade credit platform.
The news today marks an important innovation for new and improved payment solutions that will increasingly become available on B2B marketplaces.
“Hokodo’s proprietary underwriting engine and instant credit decisions, combined with Citi’s unmatched financing capability means we’re able to offer Covento customers the payment terms they desire, while suppliers receive payment up front,” explains Raphael Caruso, Director of Strategic Projects and Partnerships at Hokodo. “We’re super excited to support Covento as the marketplace expands into new geographies.”
Steven Elms, Global Head of Corporate, Commercial and Public Sector sales at Citi Treasury and Trade Solutions, said: “Through our partnership with Hokodo, Citi is helping to transform buyer and seller experiences across the renewable aftermarket through this transformative B2B marketplace. We’re excited to create new industry models to help our clients solve complex problems in the provision of innovative payment and finance solutions.”
“We are excited to partner with Hokodo and Covento to deliver a new marketplace experience for the renewables sector. Digitalising trade flows in the renewables ecosystem will make it easier and safer for buyers and sellers to interact, manage risks and to pay or finance their purchases and sales.” said Peadar Mac Canna, EMEA Head of Trade & Working Capital Solutions at Citi
“The climate crisis demands new innovative solutions, and the partnership with Citi and Hokodo enables us to simplify the ordering process of spare parts and increase customer satisfaction. We can now onboard new customers within seconds and provide them with multiple payment options. By offering a comprehensive, user-friendly, and secure platform, we empower the industry to optimise their operations, reduce cost, and contribute to a greener future,” said Jill Brandt, CEO of Covento.