The big numbers driving a revolution in B2B payments

In 2023, there were over 2 billion Buy Now, Pay Later (BNPL) transactions globally, underscoring the rapid adoption and widespread usage of BNPL services across different markets. Although traditionally popular in B2C contexts, B2B adoption is rising as businesses seek flexible payment options.

In 2023, B2B BNPL transactions reached $14 billion¹, highlighting the escalating demand for flexible credit solutions amid challenging economic conditions. This upward trajectory shows no sign of slowing down, with projections indicating that the total value of the global BNPL market will surge between 2024 and 2028, from $334bn to $687bn, marking a 106% increase².​

Moreover, the medium to long-term growth story of the B2B BNPL sector remains particularly strong. Adoption of B2B BNPL payments is expected to grow steadily over the coming years, with a compound annual growth rate (CAGR) of 27.4% projected between 2024 and 2029. By 2029, the gross merchandise value (GMV) in the sector is set to reach an impressive $669.5 billion, demonstrating the industry’s increasing relevance and potential³.

This growth is fuelled by small and medium-sized enterprises (SMEs) seeking accessible and cost-effective financing alternatives. Integrating BNPL services with essential B2B platforms such as marketplaces and ERP systems further accelerates adoption rates, making deferred payments a mainstream choice for businesses worldwide.

Deferred payment options are not only convenient but also economically beneficial for businesses. Merchants offering BNPL solutions have reported up to a 40% increase in conversion rates, as buyers are more inclined to complete purchases when afforded payment flexibility. Additionally, average order values have seen significant uplifts, with buyer credit limits often exceeding $100,000 through partnerships facilitated by financial leaders like Allianz Trade.

Further enhancing this transformation, 62% of B2B buyers are now ready to spend over $47,000 through digital self-service, signalling a readiness to adopt more flexible, high-value purchasing options. Early adopters of B2B BNPL have reported conversion rates of 20-40%, while e-merchants offering credit financing have seen a 60% average increase in customer orders. Despite this, a significant gap remains, with 95% of B2B customers preferring to pay on invoice, yet fewer than 10% of merchants are equipped to offer credit. This unmet demand results in 29% of buyers abandoning their shopping carts due to a lack of flexible payment methods. These figures highlight the clear opportunity for businesses to capture untapped potential by adopting BNPL solutions.

BNPL is transforming purchasing behaviours, enabling businesses to make substantial investments without immediate financial strain and allowing sellers to expand their customer base and revenue streams effectively.

B2B transactions inherently involve higher purchase values compared to consumer markets. Industries such as manufacturing, wholesale, and technology frequently engage in transactions that exceed tens or even hundreds of thousands of dollars. The availability of deferred payment options is critical in managing these substantial expenditures, providing businesses with the liquidity and financial agility required to sustain operations and pursue growth opportunities​.

For sellers, accommodating these high-value transactions through BNPL attracts a broader clientele and fosters long-term partnerships built on trust and financial convenience.

While BNPL has gained popularity in the consumer sector, its application in B2B contexts presents distinct advantages and complexities. Unlike consumer BNPL, which typically covers smaller, short-term purchases, B2B deferred payments involve significantly larger amounts and longer repayment periods. This requires more robust risk assessment and tailored financial structuring to meet businesses' specific needs, ensuring sustainability and mutual benefit for all parties involved.

As digital commerce expands and economic landscapes evolve, deferred payment solutions emerge as indispensable tools that drive growth, enhance financial flexibility, and foster resilient business ecosystems. Embracing these innovative payment models positions companies at the forefront of the B2B payments revolution, ready to capitalize on emerging opportunities and confidently navigate future challenges.

As businesses continue to embrace the shift towards digital commerce, offering flexible payment solutions like BNPL is becoming essential for staying competitive. Yet, with greater financial flexibility comes the need for robust risk management strategies. By partnering with Allianz Trade, businesses can not only offer deferred payments with confidence but also safeguard against non-payment risks. With tailored e-commerce credit insurance solutions, Allianz Trade helps you protect your cash flow, secure your transactions, and maintain strong customer relationships—all while driving growth in the evolving B2B landscape.

Learn more about how you can empower your business with Allianz Trade’s comprehensive credit insurance solutions today.

_{^[1] BNPL Transaction Value to Rise 106% Globally by 2028; Catalysed by Regulatory Breakthroughs and Increased B2B Use, Juniper Research}

_{^[2] BNPL Transaction Value to Rise 106% Globally by 2028; Catalysed by Regulatory Breakthroughs and Increased B2B Use, Juniper Research}

_{^[3] Global B2B Buy Now Pay Later Market Intelligence Databook Subscription - Q1 2024, Research and Markets}