Will Digital Negotiable Instruments replace Irrevocable Payment Undertakings?

Published on 2023-04-17

Unlike traditional bills of exchange that are legally recognised financial instruments, IPUs are rooted in contractual agreements. Therefore, it is essential to ensure that regulations and case law are clear on the use of digital bills of exchange as well as their synthetic siblings – irrevocable payment undertakings (IPUs).

Bills of exchange have become out of vogue in the recent decades due to their paper-based nature, which has given rise to IPUs. Legislators are catching up with trade practices, however, so digital bills of exchange are being recognised as easily financeable and enforceable documents. Buyers who rely on deferred payment terms are thus expected to equip their payables with bills of exchange, easing their suppliers access to financing at the buyer’s risk. This strategy would significantly expand the market for Supply Chain Financing (SCF) by reducing transaction costs and increasing the availability of financing to practically any is bankable buyer.

Find out more about how digital bills of exchange can revolutionise the SCF space—and what policymakers can do to support that—by watching the session “Will Digital Negotiable Instruments replace Irrevocable Payment Undertakings?” at the Tallinn SCF Summit 2023. https://lnkd.in/edxTBNmx


- Robert Parson, Partner at the Squire Patton Boggs;
- Airi Jansen-Uueda, General Counsel at the SupplierPlus;
- Uve Poom, COO at SupplierPlus;
- Gunnar Collin, Head of Sales at the Enigio;
- André Casterman, Managing Director at Casterman Advisory, Chairman at ITFA’s Fintech Committee.

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