18 November, 2022

6 minutes of reading

Written by: Alice Casagrande

Buy Now Pay Later B2B: What It Is and What Benefits It Brings to Businesses


Buy Now Pay Later is a short-term credit service already widespread in the B2C sector. But the benefits of this solution are also significant for the B2B segment, yet the offer isn't as expansive. Addressing this gap, Opyn enters the market with Opyn Pay Later. Dive into the world of installment payments for businesses!


What is Buy Now Pay Later B2B?

Buy Now Pay Later (BNPL) is a short-term credit service that allows sellers, both online and offline, to offer their customers installment payments on purchases. 

While this system has firmly rooted itself in the B2C world, as we've discussed in a previous article, there's an enormous yet untapped potential market: B2B. 

According to various studies, this segment is worth 2.5 times the consumer-oriented one. 

Yet, only a few entities have structured an offering capable of addressing the needs of the business market.

Opyn aims to bridge this gap and in November 2022 launched Opyn Pay Later, an innovative Buy Now Pay Later service specifically targeted at the B2B sector. Opyn integrates its technology and credit expertise to assist companies eager to offer a new installment payment method to their clients.

B2B Market VS B2C Market

The distinctions between B2B and B2C markets are significant: fewer buyers but with larger transaction volumes, long-term relationships often based on trust, rational purchasing decisions rather than emotion-driven ones. Some examples of B2B markets include manufacturing, import-export, consulting, and professional services. 

Over recent years, much like B2C, B2B transactions have transitioned online. Data reveals B2B e-commerce as one of the fastest-growing sales models. According to Statista, the value of B2B e-commerce in Europe will reach more $1.8 trillion by 2025. 

This online realm is precisely where the BNPL concept predominantly fits, even though it also offers an opportunity in offline negotiations, providing a rapid installment payment method as an alternative or addition to traditional B2B payment systems. This allows buyers to experience a frictionless payment experience, while sellers can potentially boost conversion rates by 40% and increase average cart size by up to 60%.

How Does Buy Now Pay Later Work in the B2B World?

Given the distinct transactional behaviors and dynamics of the two segments, adapting BNPL services to the B2B market requires adjustments. Nevertheless, the way it works for merchants and buyers is essentially the same. Each player in this domain has its unique attributes. 

For instance, Opyn Pay Later allows sellers to offer flexible installment payments to their B2B clients for digital (both remote and e-commerce) and physical in-store purchases through a Payment Link. This approach enables the merchant to simply input the amount and the client's tax code, and then securely send a payment request.

Which Challenges Can Buy Now Pay Later Address for B2B Companies?

In the B2B world, extending credit to clients has always been a common practice. Yet, it remains anchored in cumbersome and analog methods like letters of credit, debt recovery, and manual due date management. In all these scenarios, payment timelines can be protracted, negatively impacting cash flow. 

Against this backdrop, Buy Now Pay Later emerges as a smart, swift, and reliable solution for both buyers and sellers. Here are some of the particular advantages for the latter:

  • Improved cash flow management: vendors can immediately receive part  of the total amount, averting cash flow gaps, while buyers, needing immediate supplies but with limited liquidity, can procure what they need by dividing the cost into three convenient installments.
  • Increased transaction value: in addition to improved online or in-store conversion rates, Opyn Pay Later enables merchants to boost the value of their orders through upselling and cross-selling.
  • No activation costs: with Opyn Pay Later, there are no interests for the buyer and no fixed costs for the seller – just variable fees based on transaction volumes.
  • Strengthened buyer loyalty: by offering the Buy Now Pay Later service, vendors provide an added service that meets clients' needs, fostering loyalty in the process.

The Next Steps for Buy Now Pay Later

Expectations for this type of service are soaring. Its success is inextricably linked to businesses' desire to innovate their credit and purchase practices, and the ability of BNPL providers to accurately showcase the benefits of this solution to buyers and merchants. 

Hence, short-term financing fintechs have the task of introducing more stakeholders to the BNPL world and designing customer-focused, need-based products. 

Opyn's mission aligns precisely with this vision. Do you wish to be among the pioneering sellers to experience the benefits of this solution? Discover Opyn Pay Later!