11 April 2025
Flexible payments necessitated by the economic flux that companies face are the bread and butter of the new avatar of the booming business-to-business (B2B) payments market a.k.a. Payments 2.0. Digitisation of B2B payments is shaping up how Small and Medium-sized Enterprises (SMEs) engage with each other, often requiring speed of execution in high-risk transactions.
Buy Now Pay Later (BNPL) solutions can offer the best tool for these unmet needs. The BNPL offerings have shown an incredible ascent in capturing the retail B2C payments market, with an astonishing 106% [1] projected growth globally by 2028, cementing BNPL's place in the B2C payments market. The growing appetite for B2B digital payments and increasing demand for flexibility from SMEs transacting will mean significant volume growth as B2B BNPL catches up with its 5 times bigger B2C segment.[2]
BNPL for B2B sellers means receiving payments upfront while reducing the late payment risk to zero. Especially with BNPL solutions like Affivo, businesses can enhance sales by up to 40%, optimize cash flow and build a pipeline of better repeat customer orders while building better and stronger customer relations.
B2B BNPL is a credit-based payment method through which the buyers can defer payments for a certain number of days while the seller can receive immediate payment. This solution reduces the risks of late payment or non-payment for sellers by entrusting credit assessments, underwriting and collection processes to BNPL service providers like Affivo. This not only saves businesses time, and operational hassles but also helps them focus on growth rather than managing unpaid invoices. An average UK business spends £22,000 on average chasing invoices, which increases in cases of businesses such as construction and wholesale which are notorious for late payments. BNPL solutions can remove this friction from the selling process and save financial as well as operational resources.
Focusing on the Cash Flow is a major issue for SMEs and BNPL aids by ensuring sellers receive payment upfront. This alleviates financial strain and enables businesses to reinvest in operations. Offering BNPL also motivates clients to make larger purchases since they know they will be able to pay later. This leads to higher conversion rates and order value. Businesses that offer flexible payment options also have a competitive advantage over other businesses. SMEs will prefer those who offer flexible BNPL solutions over those who still use traditional credit systems. Additionally, BNPL fosters trust and loyalty, thereby improving customer relationships and driving customer retention.
Affivo provides a seamless BNPL solution for SMEs, simplifying the payment process and mitigating the risks usually associated with unpaid invoices. Integration is simple, whether companies use B2B e-commerce systems or traditional invoicing. Affivo’s technology features immediate credit approval, which assesses the buyer’s credit approval in real time to ensure quick approvals while not disrupting the purchasing process.
Seamless BNPL systems are the future with more and more businesses moving towards digital payments.
Especially in the B2B sector where it is projected that by the end of 2025 , 80% of all transactions will be online, a significant increase from 30% in 2024 . This shift underlines the importance of adopting flexible payment solutions like BNPL. By integrating solutions such as BNPLs like Affivo, sellers can enhance their revenue streams and provide a frictionless purchasing experience for their buyers in the evolving digital marketplace.
For SMEs looking to scale, B2B BNPL is more than just a payment method, it’s a strategic tool for improving business trajectory. Stay ahead with smarter and better payment solutions, Affivo’s BNPL gets you paid instantly while giving buyers the freedom they need. Don't let outdated payment systems slow your business down.
Partner with Affivo and make all transactions work for you!