When we think BNPL, most of us go straight into an e-commerce mindset – which makes sense considering the buy now, pay later market was worth $125 billion USD in 2021. As well as growing upwards, we’re now seeing this trend move laterally as BNPL becomes more common in B2B and services industries.
Here, we look at types of businesses outside of traditional e-commerce retail that are starting to leverage the power of BNPL. Read on to find out how buy now, pay later can support B2B and services and learn how Splitit can trigger growth in these “new” spaces.
How BNPL works for B2B transactions and services agreements
Just as BNPL isn’t a new phenomenon in the retail space, installment-based contracts are a common way to pay for B2B and other services.
Many contractual B2B relationships and service transactions are structured around a payment plan, in which the provider agrees to deliver the product or service upfront and the client pays for it across a series of installments.
This method has traditionally been an (often-laborious) process that can involve long contracts, credit checks, and signoff across multiple stakeholders. Modern BNPL can streamline B2B transactions or service agreements and make it easier for businesses and clients to get what they need in a quick and flexible way.
How this comes to life depends on the structure of the business and the provider – with Splitit, there’s no need to take out an additional line of credit or undergo any application process.
Companies and clients can leverage the buying power of an existing credit card and use it to pay for B2B services across a series of installments. By splitting these payments out over time, they’re able to benefit from the services they need immediately without having to apply for a loan or tie up existing funds.
The benefits of using BNPL for B2B transactions
Most businesses already have the tools they need to benefit from BNPL solutions – it just might not be something they’re aware they can take advantage of within a B2B space.
However, using Splitit’s BNPL format to pay for B2B can boost productivity and modernize the workflow in many different ways:
- Aligning budgeting: Businesses already tend to operate on monthly budgeting calendars that mimic installment plans, which makes it easy to factor BNPL payments into an existing budget.
- Large purchases: BNPL allows businesses and clients to invest in the services they need without tying up substantial funds upfront.
- Guaranteed payment: Because transactions are secured against a client’s credit card, there’s no risk of defaulting on a payment or failing to pay an invoice, which can give peace of mind to both the service provider and the client.
- Flexibility: An installment plan means that there’s more space and flexibility to allocate funds to progress all priorities and ensure all areas of the business get the support they need within budget, which is especially helpful for small businesses or startups that have multiple focuses.
- Simplicity: Splitit’s card-based model means that key stakeholders don’t need to sign off on additional lines of credit – once a decision is made and an investment is approved, those involved can use the budgeting tools already at their disposal.
- No applications: As well as avoiding lengthy internal processes, BNPL for B2B simplifies the traditionally laborious process of developing a contractual agreement for an installment payment plan.
Eyes on growth: BNPL in B2B and services
As businesses become more agile and consumer expectations shift, we’re seeing BNPL find success across a variety of industries, including B2B and services.
Health and lifestyle
Oral care platform Byte offers BNPL to customers as a way to make smile correcting technology more affordable. People are able to access Byte’s services upfront and pay for their products across a series of affordable installments.
Consulting services
Fortuna Admissions is a firm that coaches students and works with them to strengthen their profiles and application to top tier business schools. Using Splitit to pay for services makes it easier for prospective students to invest in their future.
Boundless, a firm that helps immigrants who are seeking residence in the US, partnered with Splitit to provide clients with alternative ways to pay for their services. People from around the world are now able to use their credit cards to fund a BNPL plan that allows them to access Boundless’ online filing platform and support from their expert immigration lawyers.
How to incorporate BNPL into B2B or services
As the BNPL industry expands and develops, we’re seeing opportunities for implementation across overlooked industries and formats.
Bringing payment diversity to traditional transactional relationships is a choice that can differentiate your business and open up new possibilities for your clients or customers.
With Splitit, there are many ways to add BNPL to your transactional flow. Our white-label offering means we can integrate it as a seamless part of your brand – find out more.