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Allianz Trade and Mastercard add trade credit coverage for travel payments

The program uses Mastercard Virtual Card Numbers so issuers can extend credit to online travel agencies, while Allianz Trade handles collections and indemnifies the issuer if an agency fails to pay.

Reported · Written up by our desk · Industry & Deals

Allianz Trade is partnering with Mastercard to offer trade credit insurance for issuers that support business to business travel payments, positioning the coverage to replace upfront payment requirements for online travel agencies.

According to Coverager, through Allianz Trade pay, issuers using Mastercard Virtual Card Numbers can extend credit to online travel agencies, and if an agency does not pay, Allianz Trade will manage collections and indemnify the issuer when necessary.

The offering is powered by actuary.aero, which converts transaction level payment data into real time risk signals, enabling Allianz Trade to underwrite each transaction within the payment flow and provide online travel agencies with an immediate decision.

For issuers, the insurer said the coverage is intended to reduce exposure, improve capital efficiency, and support higher transaction volumes, with Allianz Trade basing risk assessments on a database covering 289 million companies worldwide.

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