In Germany, where pay-later is the standard, which brand provides that pay-later option is a more important decision than it might seem. Ratepay handles screening and receivables in the background while leaving only the merchant's brand visible to the consumer, which is why retailers who don't want to hand their customer relationship over to an external BNPL brand have chosen it. Payment execution itself runs on SEPA direct debit (mandate)-based pay-later and installment payments.

It suits mid-to-large commerce businesses where their own brand loyalty matters, and merchants with high purchase frequency who want to directly control the payment experience. New entrants without established brand recognition may instead be better off borrowing the recognition of a brand like Klarna.

The consumer selects pay-later or installments within the merchant's own checkout screen and submits their IBAN along with a direct debit mandate. Ratepay performs a real-time credit assessment in the background, and once approved, SEPA direct debits are executed for each installment, with merchant proceeds flowing to Hecto Financial in euros (EUR).

Since the white-label structure has checkout UI requirements and disclosure text standards, please confirm both contract eligibility for a Korea-based entity and the screen configuration requirements before integration.

• Business registration country

  Confirm contract eligibility for Korea-based merchants

• Sales channels

  The integration method and priority differ depending on your online sales channel mix, such as your own storefront, open marketplaces, or mobile apps

• Product categories

  Advance confirmation is needed to check whether your category falls under Ratepay Direct debit's restricted merchant policies

• EU regulatory compliance

  Confirm compliance with EU payment regulations such as PSD2 and SEPA (see official sources below)

Merchant proceeds received by Hecto Financial in euros (EUR) are converted and paid out domestically in whichever of USD, KRW, or JPY was specified in the contract.

Because it is based on SEPA direct debit installments, the consumer's 8-week direct debit reversal right may apply per installment, and when this overlaps with the 14-day right of withdrawal, invoice and debit cancellations must be coordinated together, making return operation design important.

• Deutsche Bundesbank, Federal Financial Supervisory Authority (BaFin)Official information on Germany's payment system operations and financial supervision. Where this page differs from actual regulations, the official source takes precedence.