Buy Now, Pay Later for businesses: Why it matters and how to find the right provider
The way organizations pay and get paid is changing. From the introduction of digital wallets to brand-new forms of lending, there have never been more choices available for businesses and consumers, or more pressure for providers to meet expectations.
Where it once primarily targeted consumers, Buy Now, Pay Later (BNPL) is now opening new possibilities for business buyers and sellers, changing how businesses transact.
Understanding BNPL for businesses
B2B BNPL defined: A financing option that allows a business to purchase what they need now and pay for it over time, usually in low or interest-free installments. In turn, this leads to reduced friction, more access to working capital, and even business growth.
For platforms supporting commercial customers, this creates an opportunity to better serve businesses. It works in a few simple steps:
Integration: Your business integrates a BNPL solution through an API or plug-in for your existing checkout experience.
Checkout: When a buyer is ready to make a purchase, BNPL appears alongside traditional payment methods. The buyer chooses to break up payments and proceeds with their order.
Approval: The BNPL provider quickly assesses the buyer's eligibility, typically making a first approval decision in minutes to hours with minimal disruption. Once a business is approved and trusted, repeat purchases can often be approved instantly or within a few minutes.
Funding: Once approved, funds are paid to your company up front, typically minus a small provider fee. The BNPL provider now takes on the repayment schedule with the customer.
The outcome is buyers getting more flexibility and control over their cash flow, and suppliers getting paid in full, right away. A win-win.
Why BNPL for B2B matters
BNPL is more than a convenience for buyers. For businesses that offer it, the payoff can be a real competitive advantage.
Larger orders, higher conversion
Flexible payments give buyers the confidence they need to make bigger orders. The ability to pay over time can help alleviate sticker shock that comes with higher-ticket items, so more customers can feel prepared to commit. For many businesses, offering BNPL can help increase average order size and conversion rates.
Happy customers, lasting relationships
Just as consumers increasingly expect seamless, flexible experiences, today's business buyers often seek the same conveniences. By providing them with the opportunity to align payments with their revenue cycles, you can demonstrate that you both understand and support their needs. This can lead to higher satisfaction, more referrals, and stronger long-term partnerships.
Predictable cash flow, lower risk
With BNPL, the risk of late or non-payment shifts to the provider. You reap the benefits of a quicker and more predictable cash flow, while customers repay on their terms.
Standing out in a competitive marketplace
Flexible payments are quickly becoming a standard expectation, but that doesn't mean they aren't still a competitive advantage. Businesses that provide these choices will continue to have an edge with customers seeking modern, adaptable financial solutions.
What to look for in a BNPL provider
If you're ready to explore your options, here's what to consider when evaluating potential BNPL providers for your organization:
Experience and reliability
Look for providers with a proven track record of supporting B2B transactions at the scale you need now and in the future. Evaluate their uptime and review customer case studies.
Transparent costs
Understand the fee structure (typically a percentage of each transaction) and ensure it aligns with your expected revenue and customer satisfaction benefits. Ask potential providers to demonstrate their total cost of ownership at your transaction volume levels.
Easy integration
Look for a provider that can demonstrate their ability to get up and running quickly and smoothly, with minimal effort and interruptions. API integrations and UX tools can help you get your program to market faster.
Cross-border support
If you serve customers across several geographies, it's important that the BNPL provider you're evaluating has experience handling multiple currencies, regulatory requirements, and payment preferences.
Built-in analytics and reporting
Access to transaction data, repayment patterns, and trends will help equip your team with the insights they need to optimize sales and customer support.
Responsive customer service
Running into questions and problems is inevitable. Choose a provider with reliable, accessible customer support for your team and your buyers.
Next steps
Buy Now, Pay Later can help businesses simplify financing and build lasting customer loyalty. Succeeding with BNPL starts with the basics: finding a trusted provider.
At Marqeta*, we help platforms build flexible payment experiences, including BNPL partnerships. We believe payments should be fast, flexible, and built around the customer, and BNPL is one way to get there.
Talk to an expert to see how Marqeta could support your platform growth.
*Marqeta is not a bank, a lender or a money transmitter. Marqeta provides a technology platform to enable its customers to build out products using services offered by its bank or licensed partners.
