How to Choose the Perfect B2B Buy Now, Pay Later (B2B BNPL) Provider

Updated:

April 12, 2024

Identifying your B2B BNPL needs

When planning to adopt B2B BNPL, start by defining your business objectives. Consider your target market, sector, average order value, buyer preferences, and what other software you use that it needs to connect to.

In order to successfully fulfil your business's needs, you’ll want to review the main channels of your business. For example; Ecommerce-based transactions, offline channels like tele-sales and invoicing,or a hybrid approach. You’ll want to assess B2B BNPL providers experienced in the relevant types of transactions you take. Look at providers that are highly active in your market, or where your top competitors have had success.

Understanding buyer needs will help you build the best customer experience for your business. Evaluate your buyer’s purchasing patterns and payment preferences. If you’re already offering finance to customers through other methods like trade credit, we’d advise discussing B2B BNPL payment options with those buyers to understand how often they would choose to pay by BNPL and what payment terms they would expect.

Also consider discussing BNPL payment options with your other buyers not paying via financing to understand their preferences. Would they increase their order size & frequency knowing they won’t have to pay upfront? Use this insight to determine the servicing you need from a BNPL platform.

Key factors when choosing a B2B BNPL provider

Increasingly, B2B buyers now expect the shopping experiences they have in the B2C world. At Kriya we provide B2B buyers the B2C BNPL experience by creating:

A frictionless buyer journey, making transacting as easy as possible

Flexible 30, 60, 90 day payment terms to suit both merchant & buyer
A unified, multichannel buying experience - coverage wherever you sell, for online or offline channels.

When selecting the perfect B2B BNPL provider for your business, there are several key factors to consider. These factors will help you evaluate different providers and choose the one that aligns with your specific needs and goals. The following considerations should guide your decision-making process:

Providers Built-for B2B Solutions

B2B transactions often involve complex buying journeys and industry-specific requirements. It is essential to choose a B2B BNPL provider that understands these intricacies and offers solutions tailored to the B2B market. If required, you’ll need to look for providers that can handle multichannel commerce, order pricing adjustments, buyer approvals before checkout, and the ability to accommodate large orders paid in instalments.

Not all providers will have the level of functionality that you’re looking for. Many merchants will go for the household names, but companies like Klarna are designed for B2C transactions, whereas Kriya is built specifically for B2B BNPL.

Reputation

Choosing a reputable Buy Now, Pay Later (BNPL) provider is essential to guaranteeing your clients a smooth and dependable experience.

A BNPL provider's credibility stems from their proficiency in handling transactions in a secure and effective manner. Look into how long the provider has been servicing merchants, their reviews on sites like Trustpilot, their customer stories & their investor backing to get a comprehensive overview of their reputation.

Kriya has a long track record of success. We've been providing PayLater services for over 12 years, processing over £27 billion in payments through 3.7 million transactions. We’re backed by some of the biggest high street banks, so our customers know they’re in safe hands.

Ease of Implementation & Integration

Integration should be straightforward and efficient. There are several possible ways to integrate a BNPL solution. For example, with Kriya, you can build BNPL into your sales process and platforms through the following methods;

Direct API – Build directly to our API for a highly flexible and customised checkout solution.
Hosted Payments Flow – Insert a branded payment page at checkout or embedded within other payment prompts.
Ecommerce Plugin – Get up and running immediately with our range of eCommerce plugins such as WooCommerce, Magento & Prestashop.
Merchant Portal – Get instant buyer spending limits and process offline orders without any need for a technical integration

Discuss the technical requirements for your business with your product/development teams to understand which integration method suits your use-case.

You should also evaluate the different levels of developer support, API documentation, and technical expertise across providers to ensure a smooth integration process. Additionally, consider the level of ongoing support provided by the provider, including access to engineers and software development kits.

“The integration process was very smooth, the team’s level of professionalism and efficiency in addressing issues left us thoroughly impressed.” - Learn about how Fractory got set up with Kriya

Seamless Buyer Experience

The payment experience plays a crucial role in customer satisfaction. Select a B2B BNPL provider that minimises interference in the buying process, prioritises your buyer experience, and offers localised payment options. A seamless and user-friendly experience enhances trust, increases conversion rates, and encourages repeat business.

Take into account the user's experience and put yourself in their position. Assess the BNPL technology's usability, mobile friendliness, checkout process simplicity, and accessibility. Look for elements that make buying easier for the buyer, such as pre-approval checks, clear conditions, and user-friendly interfaces.

Merchants offering Kriya PayLater have seen a 68% increase in average order size, their buyers are 82% more likely to convert with payment terms and are 2x more likely to make repeat purchases.

Credit Risk and Fraud Mitigation

Offering B2B BNPL typically will increase conversion and order size in your customer base. However, without the appropriate processes in place it could expose your businesses to risk.

The first is credit risk, whereby credit is over extended to buyers that are not creditworthy. This can result in late repayment or in some cases losses which in turn impact your business cash flow.
Another category of risk is fraudulent activities, such as identity theft or false invoicing, which can lead to financial losses and reputational damage.

Ensure your B2B BNPL provider actively mitigates these risks through robust credit assessments, advanced fraud detection mechanisms, and proactive monitoring. In some cases, the provider will take on the full credit and fraud risk for you, as part of their service.

With this safety net in place, you won't have to worry about missing payments or pursuing debt, allowing you to concentrate on what really matters—achieving your company's growth objectives.

At Kriya we handle credit and fraud risk for you through a seamless buyer onboarding process at point of order. Once credit checked, eligible buyers are given a spending limit in a matter of seconds. Limited companies are authenticated through Director ID checks and we can run KYC for sole traders via the same flow.

By mitigating your risk and removing the friction from onboarding, buyers can be approved faster, resulting in more sales from credit-worthy customers.

Top providers will work with you to determine what percentage of your buyers are eligible for credit, and show what uplift in spending limits we could provide you. At Kriya

Coverage

If your business exports then you will need to work with a B2B BNPL provider that can provide coverage in the regions you operate in.

Providing international buyers with flexible payment options is a great way to increase your export sales. However, it’s important to find a partner who understands these markets, supports local currency and can safeguard you against the risks of international commerce.

Kriya supports B2B BNPL in 45 countries across Europe, North America, The Middle East, Asia and Australia. We support transactions in British Pound Sterling, Euros, US Dollars, Australian Dollars and Swiss Francs.

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“The financing piece is absolutely critical to us but it's not the core specialty that we need to build. With Kriya, we can distribute that ability to get paid now and give buyers payment terms that suit them.”

- Abdel Wahab Turkmani, CEO & Founder, Farmlend

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Find out how Farmlend built an export business with Kriya ->

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Cost-Effective Solutions

Price is an important factor when choosing a B2B BNPL platform. You’ll need to consider the return on the investment of implementing a B2B BNPL solution, and whether the conversion rate & average order value increases outweigh the costs.

Consider the flexibility of payment options offered by the provider and the ability to pass on payment fees to buyers when necessary. Evaluate the fees charged by the provider, including late fees, to ensure transparency and avoid any unexpected costs. Choose a provider that offers cost-effective solutions and aligns with your specific payment needs.

When charging a transaction fee, a decent BNPL provider will be doing much more than simply processing payments. Evaluate the additional merchant services they provide, such as buyer onboarding and authentication, invoicing, reporting, insights and reconciliation to your business management systems.

Choosing the right B2B BNPL Provider

We're Kriya, the leading payment method that offers B2B buyers flexible payment terms across all sales channels. With 12+ years experience in payments and working capital, our team of experts are on hand to discuss your B2B commerce and BNPL projects. Get in touch today and find out how we can help.