Now is the time! The opportunities offered by Buy Now Pay Later (BNPL) appear to be massive for B2B. When offering their payment methods, platforms and marketplaces should choose to stand out from the rest, as recommended by Meriem Ouenniche, Client Solution Manager at Webhelp Payment Services.
This is no longer simply an option, it’s a standard: Buy Now Pay Later is experiencing exponential growth in the area of B2B. It is noted that this credit purchase option has been offered in e-commerce and B2C marketplaces for years by fintechs such as Younited Credit or Klarna, who are now transposing their solutions to B2B. Buy Now Pay Later (BNPL) allows marketplace operators, sellers and buyers to access deferred payment solutions.
But is this not “merely” a new credit option? Here are the arguments suggesting that this phenomenon deserves to be looked at more closely:
– It is true that credit is nothing new in B2B commerce, but we are conscious of a new desire on the part of Buyers and Sellers for a solution that is perfectly integrated with the shopping experience. This “way of thinking” comes as no surprise: millennials represent a significant part of the workforce in companies, and 73% of them are involved in B2B purchasing decisions*. As keen supporters of B2C purchases on ultra-optimised platforms (eBay, Amazon, Cdiscount, etc.), they aren’t ready to give up this quality of experience in the workplace.
– From the perspective of Sellers and the business platform, BNPL is seen as an opportunity to increase the value of the average basket, to enhance customer involvement and loyalty, to reduce financial risks and to focus on the business and growth rather than on payments.
– From the Buyers’ perspective, VSEs and SMEs are a very receptive target for the benefits offered by BNPL, as long as the operations and formalities are straightforward and fast. These companies are looking for more flexible and less restrictive alternatives to the credit solutions offered by conventional banks.
4 ways to stand out with BNPL
In a context of rapid change it would seem appropriate to offer Buy Now Pay Later in the following 4 areas of differentiation:
1) You need to offer a highly personalized shopping and payment experience
The buyers must feel understood, listened to, and that their preferred payment methods are taken into account. Analytics and AI seem to be particularly relevant in this new purchasing ecosystem, thanks to their ability to personalise the customer experience.
2) Your payment solution should make it possible for the seller to be paid more quickly (instant pay out) and for the buyer to pay on the payment date that suits them (which may differ from the one proposed by the seller)
Scoring plays an essential role in the analysis and evaluation of the buyer’s profile in order to define the appropriate credit line and thus limit the risk of non-payment.
3) Your payment solution needs to be fully integrated, fluid and seamless
In contrast, a complex payment experience will, in the long run, prove to be a deal breaker. This shows the importance of continuous, dynamic improvement of the user experience (UX).
4) Your payment solution needs to be comprehensive and flexible
To meet new market demands, it is recommended to offer BNPL solutions in order to support B2B marketplaces in their growth and diversification of their offer.
As a PSP (payment service provider), Webhelp Payment Services covers the entire spectrum of B2B payment services through a scalable offer adapted to the client’s needs: scoring, onboarding of buyers & sellers, pay in / out, white label invoicing, dunning, debt collection, credit insurance, BNPL, etc.
*According to a report published by Merit.
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