A Guide To Choosing The Right B2B BNPL Provider For You
Buy Now, Pay Later is a payment method that allows buyers to make their transactions instantly and delay payment. Depending on the provider, buyers can choose to pay their invoice in equal instalments over the months or they can pay them in full in 30, 60, or 90 days.
The rise of B2B BNPL
If you are a B2B merchant, you may have heard that B2B BNPL has been taking the business e-commerce space by storm in the past few years. The pandemic has caused many businesses to move online, and many business owners have very quickly caught up with the integration of different payment methods in their online shops. This integration was motivated by several factors:
1. Buyer Behaviour Has Changed.
In the past, buyers often made business transactions in person or over the phone. These days, the overwhelming majority are comfortable making large transactions online, and many of them even state that they prefer making transactions through digital channels instead of through any other avenue.
2. Buyer Expectations Have Changed.
As it has become easier and easier for buyers to make B2C purchases online, many of them have expected the same of B2B transactions. They want transactions with fast approval, and they want a streamlined checkout experience. They are also looking for more options to pay – and this is a key reason why BNPL has taken off in the B2B space.
Do I Need B2B BNPL?
Whether any B2B merchant ‘needs’ BNPL as a payment method depends on a huge variety of factors. However, if you find yourself constantly chasing late invoices, not having enough time to conduct credit checks on your prospective buyers, or generally having a high cart abandonment rate – BNPL may just be the answer.
But how do you choose which provider you should work with? And how do you know you have made the right decision? To learn more, keep reading.
How to Choose the Right BNPL Provider For Your Business
With the popularity of B2B BNPL rising, there has been a proliferation of BNPL providers targeted towards B2B merchants. To determine which one will be most suitable for your business, you should consider the following:
What Type Of Business Do You Run?
Some BNPL providers cater to B2B marketplaces, while some cater more towards large corporations. There are also providers that lean more towards start-ups and small and medium enterprises. Knowing where you fall is crucial, because different providers will offer different levels of customer support depending on the kind of business they are most used to serving.
Where Does Your Business Operate?
Another crucial factor to consider is where your business operates. Choose a B2B BNPL provider that can provide payment services in your region and in your preferred currencies. If you are in the European Union, you may consider providers that work with the SEPA direct debit system. If you are an international company, you may want to select a provider that can facilitate cross-border payments and accepts payments in multiple currencies.
How Much Does The B2B BNPL Provider Cost?
The way many BNPL providers work is that they charge a small amount of money from your buyer’s transactions. This can be a sliding percentage that changes depending on the sum of a transaction or it can be a fixed fee. Make sure you enquire about the costs upfront and how much your provider will charge you per transaction. You should also make sure there are no hidden fees.
Does the B2B BNPL Provider Have Experience?
Next, you should consider the reputation and reliability of a BNPL provider for your B2B online shop. You can check out testimonials and reviews to see what others are saying about them. You can also see if they have any case studies on their website for you to refer to. The main thing you should know is if they have any experience working with your type of business, and if so, what successes they have brought other companies with their collaboration.
What Kind of Support can the B2B BNPL Provider Offer?
Most BNPL providers will be able to provide a few services beyond just the payment method itself. Some of these services include payment processing, invoicing, credit-checking, and invoice management. Knowing what your BNPL provider offers is important, especially for smaller companies that have limited resources.
The Bottom Line
B2B BNPL is on the rise because more and more B2B merchants are realising that it works. Whether you are looking to stay abreast the competition or to out-compete them, having a streamlined checkout process that offers multiple options to your buyers is a great way to do so. However, understand that not all providers are the same. To find the best fit for you, remember to do thorough research, understand your business and your target demographic, as well as what the provider’s services are.