Programmable payment workflow creates new industry standard

We worked with Trafigura to transform the way payments are processed, establishing a new industry standard.

April 21, 2025

3 mins

Corporate & investment bankingTransaction banking

A digital upgrade to Trafigura’s payment processes has established a forward-looking benchmark for Trafigura and for the broader commodities industry. Smart contracts ensure accurate invoice matching, eliminating fraud and dramatically reducing both processing times and administrative load. The co-created solution, which was built with our payouts-as-a-service platform at the core, increased the security, speed and efficiency of payments.

The co-creation effort with Standard Chartered breaks new ground by adding vitality to our flagship Trade Receivable Securitisation programme. This initiative aligns with our long-term vision of operating a robust and modern operational framework.

Chris McLaughlin

Global Head of Group Treasury, Trafigura

Background

Trafigura Group Pte Ltd is one of the world’s largest suppliers of commodities. Founded in 1993, the company trades oil and petroleum products, metals and minerals, gas and power, renewables and hydrogen, and carbon products and solutions. It facilitates logistics and manages complex supply chains to bring commodities to its customers. Trafigura is domiciled in Singapore and headquartered in Geneva, Switzerland, with more than 60 offices globally, and producers and customers in over 150 countries.

Client challenges and objectives

Trafigura’s long-running receivables securitisation programme vehicle – Trafigura Securitisation Finance Plc – covers 75 per cent of the Group’s global accounts receivables. This programme has accumulated approximately 150+ financial intermediary participants, with approximately USD1 billion in payments processed daily. Various parties (including trustees and a programme agent) oversee the programme, implementing governance standards and managing the layers of legal documentation involved.

The previous processes for overseeing these payments were largely manual and susceptible to fraud and errors: in particular, with incorrect or late payment to finance parties. Trafigura sought to modernise these processes and strengthen its operational framework.

Solution and implementation

Standard Chartered – the programme’s account bank since 2020 – worked with Trafigura and the programme agent to co-create a digital, automated solution for the programme’s payment workflows. The solution was built with Standard Chartered’s payouts-as-a-service platform at the core. It incorporates smart contracts into the fiat world through automated matching of invoice data provided by Trafigura and the programme agent to Standard Chartered.

The Bank provides 100 per cent two-way programmed matching of invoice data, which then triggers payments to the relevant intermediary participants (as identified in the invoice data), without the need for separate payment files or instructions.

The solution defines a new industry standard for complex and controlled money movement, whilst elevating the security and control systems of our programme at significantly increased speed and efficiency.

Chris McLaughlin

Global Head of Group Treasury, Trafigura