What is POBO?Pay on behalf of, explained.
A payment company pays a supplier for its client. The supplier's bank needs to see who really pays.
POBO, defined
POBO (pay on behalf of) means a payment provider pays a supplier or other third party for its client. The money leaves the provider's account. The payment names the client as payer and links to the client's invoice.
How a POBO payment works.From invoice to paid supplier.
Example: a Nigerian importer pays a supplier in mainland China through its PSP.
Client shares the invoice
The importer gives its PSP the supplier's invoice and payment details.
Funds arrive in local currency
The importer pays the PSP in naira. The PSP funds Nilos in NGN.
Checks on the payment
The payer, the supplier and the invoice are screened. If the PSP is regulated, Nilos can rely on its KYB.
Supplier is paid
Nilos pays the supplier in CNY, naming the importer as the party paying the invoice.
POBO vs your own account.Whose name the bank sees.
Same money either way. What changes is what the supplier's bank sees.
| Point of comparison | Paying from your own account | POBO |
|---|---|---|
| Name on the payment | The payment company | The client who owes the invoice |
| Link to the trade | Often missing | Linked to the client's invoice |
| Correspondent bank view | One name paying for another, often queried or rejected | The payer matches the invoice |
| Supplier reconciliation | Supplier has to work out who paid | Supplier sees which customer paid |
When you need POBO.
You need it when you move money for other businesses, and their suppliers or banks must see who paid.
- PSPs and fintechs paying for importers
- Banks settling clients' trade payments
- Remitters sending B2B to mainland China
- When a correspondent bank asks who paid
Related terms.The words around POBO.
Each term opens the page that covers it in full.
Pay suppliers for your clients,with their name on the payment.
See how Nilos POBO links each payment to your client's invoice. Or tell us your corridors and we'll map the route.