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5 Reasons to Use A Specialized B2B Buy Now, Pay Later Provider

The sudden rush of buyers moving online due to the COVID-19 pandemic led to business-to-business (B2B) merchants having to undergo rapid digitization. Despite this shift, B2B online stores often fail to meet the expected consumer-like experience. One main area where business buyers' needs and expectations surpass reality is the popular payment method Buy Now, Pay Later (BNPL). Meeting these expectations will set you apart from the competition and improve your B2B offering with an experience catered to business buyers. Here are 5 reasons to choose a specialized B2B Buy Now, Pay Later Provider over an in-house solution to achieve this.

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5 Reasons to Use a Specialized B2B Buy Now, Pay Later Provider

There are multiple reasons to use a BNPL provider tailored for B2B, and we have included some of the most relevant ones below:

Use Ready to Go Teams

One of the main benefits of outsourcing your BNPL program is that the people needed to set up and maintain it with the necessary skills and experience are already in place. And this is particularly valuable if you wish to enter the B2B space quickly or improve your current offering. Another benefit is that providers have people to continuously develop and improve their BNPL products since this is their core service. Using a provider allows you to hit the ground running and frees up resources within your teams to focus on where they are needed most.

Stand Out With Excellence

The experience business buyers receive while purchasing is often not up to scratch, and BNPL as a payment method is no exception. It is common for merchants to use a B2C product that dabbles in B2B. But a specialized solution is tailored to business buyers. Integrating a provider's checkout widget enables a frictionless purchasing experience, with buyers no longer needing to manually input their details and payment authorizations happening in real time. 66% of B2B buyers report a negative buying experience. And by using a provider that meets their needs, you can stand out against competitors that don't.

Serve More Customers

One key success metric of a BNPL solution is the number of business buyers that can use it, which is more complex than it sounds—with many dependencies happening behind the scenes. One such requirement is the capability of reliably identifying a variety of business types and allocating a correct creditworthiness score. And from sole traders to public institutions, there are multiple out there that all need different assessments. Instead of negotiating contracts with credit bureau providers to use their external databases to support this, a specialized provider already has these in place. Therefore it has incorporated the data to feed into an AI-supported scoring model that comes with acceptance rates that can hit the ground running, enabling BNPL for almost all of your buyers, including guests and new buyers.

Enjoy Zero Default Payment and Fraud Risk

One of the biggest risk factors when it comes to offering flexible payments is the risk of business buyers defaulting on payments or, even worse, making a fraudulent order. An attractive advantage of using a BNPL provider is that they cover fraud and default payment risk, removing a costly worry with zero risk to the merchant. This is particularly important due to the current macroeconomic situation with rising inflation impacting buyers' ability to pay on time, or worst case scenario, being unable to. A provider also offers a dunning and collections service, meaning if buyers default, they will handle the whole collections process end-to-end.

Be Specialized for Business Buyers

Offering BNPL tailored for B2B goes beyond just having the payment option available at the checkout. Business orders require increased payment terms to support lengthy and complex processes. Business buyers also need higher credit limits to cover larger basket sizes. And an often overlooked requirement is the need for separate shipping addresses for ordered goods or services. Additionally, having features like post-purchase services and order management tools help to support business buyers further. And there are even more requirements. Using a specialized BNPL provider allows you to meet these specific needs of business buyers, increasing customer satisfaction and reorder rates.

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If you want to cater to business buyers or improve your current offering, then using a specialized provider is the way to go. While knowing the benefits of using a BNPL provider is important, understanding how this fits into B2B e-commerce is too. Topics such as revenue potential, BNPL's impact on business metrics, and the cost structure need to be taken into account. You can gain further insights into these topics to support your understanding in our whitepaper.

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