Buy Now, Pay Later (BNPL) is now emerging as an essential payment method, giving consumers the option to defer payment on their purchases. This model, largely driven by the rise of e-commerce, saw the French market reach €4.5 billion in 2021, with an anticipated annual growth rate of 27.3% until 2028 (Research And Markets). Consumers across all age groups and income levels are drawn to this financial flexibility. On the other hand, merchants are seeing a significant increase in sales: the average BNPL transaction amount is 17% higher than that of immediate payments.
However, the B2C BNPL market is currently facing significant challenges. Although e-commerce has long fueled its growth, the slowdown observed since 2024, due to inflation and decreased purchasing power, is weighing on this momentum. Additionally, rising interest rates are reducing the appeal of credit options and increasing the risk of payment defaults. These factors, combined with heightened regulation, are pushing BNPL players to find ways to remain competitive. Their options are limited: either absorb the costs, risking their profit margins, or pass them on to customers, which could reduce consumer interest.
In this context, a strong trend is emerging with the rise of a new market: B2B BNPL, which could transform the way businesses handle transactions.
The B2B Market: A rapidly expanding opportunity
While BNPL B2C is encountering obstacles, the B2B sector appears to be fertile ground for innovation in deferred financing. Businesses, particularly VSEs and SMEs, need flexible payment solutions to better manage their cash flow and meet demand. Traditionally, inter-company credit has taken the form of deferred payment terms (such as "30 days end of month") and has been supported by factoring practices and traditional methods that are costly, risky and manual. The B2B BNPL, by introducing advanced new technology, could simplify these processes, reduce costs and automate the financing process.
Thanks to the legal frameworks in place, such as the LME law in France, which allows payment terms of up to 60 days, companies already have a basis for further exploring BNPL in the B2B context. However, this market remains largely under-exploited, even though B2B transactions are on the increase. In 2023, Only a handful of fintechs in France offer BNPL solutions for B2B.This leaves considerable potential for players wishing to position themselves in this sector, particularly in e-commerce and physical points of sale.
B2B BNPL differs from traditional financing solutions such as reverse factoring in the way it is initiated: in this case, it is the buyer who requests deferred payment, thereby transferring the debt to a financial third party who pays the supplier directly. This inverted approach, centred on the needs of the buyer, offers greater flexibility, although its adoption remains limited, notably because of the challenges of access to finance and the complexity of the processes for VSEs and SMEs.
The B2B market presents specific challenges that are slowing the penetration of BNPL. Unlike B2C, where an individual's creditworthiness is assessed, scoring in B2B requires further analysis: in addition to assessing the company's financial health, the legitimacy of the transaction and the soundness of the commercial relationship between buyer and supplier must be verified. These requirements make BNPL's B2B solutions more complex to develop, but also more valuable for companies with rapid and reliable financing needs.
B2B BNPL brings tangible benefits for all parties involved. Sellers can outsource credit risk, optimizing cash flow and freeing resources for more strategic initiatives. Meanwhile, buyers can access goods and services essential to their operations, spreading payments over time. During economic pressure, this flexibility helps maintain activity without burdening the financial balance sheet.
By integrating BNPL, purchasing and sales journeys become fully digitalized, with multichannel solutions allowing merchants to offer payment flexibility in-store, online, or remotely. This seamlessness simplifies commercial interactions, eliminating administrative tasks and outdated financing methods no longer suited to the speed of modern transactions.
B2B BNPL is much more than just a financing option: a profound transformation in inter-company payment practices, promoting greater financial accessibility for businesses of all sizes. By reinventing B2B financing, this solution is helping to redefine industry standards and introduce a new dynamic, which promises to revolutionise business-to-business trade in the long term.
A business model suited to companies
The BNPL B2B business model is based on fees, calculated as a percentage of the amount financed. These fees cover technological costs (scoring, credit decisions, payment methods), financial costs (financing of sums due, cover for non-payment) and operational costs (customer service, merchant service, debt collection). Depending on the customer's risk and specific commercial conditions, the fees can be adjusted, leaving the merchant free to absorb them or pass them on to the customer. This model favours a balance between profitability and flexibility for both parties.
Concrete example:
- 3% fee for a 30-day deferred payment
- For a transaction of €100, the fee amounts to €3, which can be partially or fully covered by the merchant.
The applied rate varies based on the nature of the payment facility, the client’s risk profile, and the specific conditions of the seller. The merchant has the option to bear these fees or pass them on partially to the buyer.
How a B2B BNPL transaction works
Whether the purchase is made online or in-store, the B2B BNPL process is designed to be quick and seamless. The merchant simply needs to integrate a BNPL plugin into their sales platform or terminal, allowing professional clients to choose an installment payment option directly at the time of purchase. The buyer only needs to provide necessary information, such as contact details and the SIRET or SIREN number of their company.
Once this information is entered, the buyer initiates a request for payment facilitation from their mobile. The verification process is instant: with advanced scoring algorithms, a decision is made within seconds and simultaneously communicated to both the buyer and the merchant. If the request is approved, the BNPL provider immediately pays the transaction amount to the merchant, who can therefore complete the sale without delay or risk of default.
The BNPL provider then manages the buyer’s installment payments, ensuring they are collected on the agreed dates. This centralized and secure approach simplifies the process for everyone involved: the buyer enjoys payment terms tailored to their cash flow needs, while the merchant can focus on their core business without the complexities of credit management.
This transparent and efficient model brings real added value to businesses by streamlining the payment process. It ensures professionals a smooth and secure buying experience while enabling sellers to offer attractive and flexible payment options. By facilitating instant access to financing, B2B BNPL becomes an essential tool for businesses, simplifying the purchasing process and optimizing cash flow management.
The keys to a successful B2B BNPL
B2B BNPL is still maturing within the Fintech world, but certain key elements are already emerging to ensure its success. To provide a smooth, fast, and secure experience, here are the critical factors to master:
1. Ease of use
The customer journey must be smooth, with no external redirects, to guarantee an optimal experience both online and in-store.
2. Instant and quality financing decision
The speed and accuracy of the financing decision are crucial assets. The quicker the response, the more it strengthens trust and the effectiveness of the service.
3. Comprehensive fraud management
Managing fraud is a major challenge. Specialized expertise is needed to minimize this risk, which is both an operational and financial burden for merchants. The quality of the KYC/KYB process, combined with an efficient decision-making algorithm, is essential to secure transactions.
4. Omnichannel
Offering a BNPL solution across all sales channels is essential. Whether in-store, through a call center, or on an e-commerce platform, it’s strategic to meet the varied needs of merchants and their clients.
5. Tailored payment methods
Every client has their payment preferences. Some prefer credit cards, others opt for SEPA direct debits, while others prefer bank transfers after receiving the invoice. Adapting payment options to clients’ habits and geographic specifics is crucial.
6. Short payment terms for merchants
B2B BNPL allows merchants to offer payment terms to their clients while getting paid immediately, thus strengthening their cash flow.
By implementing these elements, the benefits for sellers can be significant: increased conversion rates, improved customer retention, and optimized customer satisfaction. Moreover, although B2B purchasing behavior differs from B2C, these strategies can also contribute to higher average order values.
With a rapidly growing market and widely underutilized financing demand, B2B BNPL is poised for rapid growth in the coming years. However, this market presents distinct characteristics compared to B2C, particularly in terms of scoring complexity, transaction amounts, and associated risks. These challenges could give rise to new players and innovative partners, especially from credit or B2B invoicing specialists.
Deferred payment: accelerate your growth with RollingFunds
At RollingFunds, we help B2B businesses boost their sales and generate additional revenue through customized deferred payment solutions. Here’s why RollingFunds is your ideal partner to support your growth:
- Seamless omnichannel experience: Provide your customers with a consistent and unified brand experience across all your channels, whether digital or physical. With our intuitive Extranet and integrated APIs, streamline information sharing and simplify access to deferred payment options for both your teams and customers.
- Fast onboarding process for SMEs: With a simplified and intuitive onboarding process that takes less than two minutes, our solutions are easily accessible even for small businesses. This proven efficiency, adopted by partners like La Plateforme du Bâtiment, enhances the user experience and promotes the adoption of our solutions.
- Accurate scoring and tailored solutions: Our in-depth understanding of SMEs allows us to provide precise scoring and customized installment payment solutions for each risk profile. By offering tailored revolving credit lines, we strengthen customer loyalty while improving conversion and satisfaction rates for end users.
- Flexibility in deferred and installment payments: From the first purchase, your B2B customers can access immediate and flexible deferred payment options, with choices of terms (30, 60, 90, or up to 180 days) or installment payments over 3 or 6 times. This level of flexibility allows your customers to manage their cash flow optimally, making payment terms not just an advantage, but a true competitive lever.
- Continuous data enrichment for optimized risk management: Through constant monitoring of client company information, we ensure proactive risk management by quickly detecting critical changes (such as changes in leadership or insolvency proceedings) that could impact their solvency. This vigilance strengthens the security of your transactions and protects your business.
With RollingFunds, turn financial challenges into growth opportunities.
Adopt our deferred payment solutions to turn cash flow constraints into competitive advantages and secure your company's future in the B2B market. With RollingFunds, deferred payment becomes a driver of sustainable development and customer loyalty, serving your success.
