With the development of the Internet technology and new business models, the efficiency of real supply chains has greatly improved. Trade parties have accelerated their industry processes, reduced processing costs, and improved forecasting and planning. Under these circumstances, traditional settlement methods based on paper-based trade can no longer meet the requirements of enterprises. The traditional international payment method(Letter of credit, collection and remittance) of commercial banks cannot meet the requirements of large-scale enterprises for efficient and convenient settlement methods. On the other hand, these settlement methods can not meet the needs of SMEs'' financing facilities, which leads to the dilemma of weak growth.
Under this circumstance, commercial banks around the world began to innovate in the trade finance model. As a new international channel, BPO(bank payment obligation) combines the security of Letter of creditt and the convenience of Open Account(O/A)，which makes banks and enterprises more efficient, convenient and low-risk to deal with international settlement business, which has important application value. Although the BPO business has a slow development process in China, it has made considerable progress from the perspective of the entire international trade finance market. The future of BPO is expected to replace L/C and O/A as the mainstream payment mode for international trade.
Firstly, this paper explains the background and significance of BPO, and then introduces the concepts, characteristics and development status of BPO national around the world. Secondly, it expounds the development status of BPO in China, and then analyzes the obstacles and advantages of BPO promotion in China. Thirdly, Through Internal and External Analysis is used to expound the strengths and weaknesses of BPO and the threats and opportunities in the development process. It discusses the important role of BPO in solving the dilemma of international settlement and put forward the corresponding strategies for promoting the development of BPO business in China.