BNPL (Buy Now, Pay Later) best practices for B2B merchants

BNPL (Buy Now, Pay Later) isn’t just for impulse buying sneakers or last-minute vacation deals. It’s making some serious waves in the B2B market. Traditional B2B payment methods have been a teensy bit stuck in the past, but with customer preferences shifting towards B2C-style buying, merchants are actively seeking modern solutions to conduct their commercial transactions.

With today’s buyers expecting flexible payment terms, businesses are turning to BNPL to boost sales, improve cash flow, and increase brand loyalty. However, implementing BNPL in a B2B setting can be tricky. It requires careful planning, from choosing the right provider to integrating it seamlessly into your website and sales workflows.

We’re taking a look at some strategies and best practices to help you launch your BNPL initiative successfully, increase adoption of this popular payment method, and ensure a good conversion rate.

Why BNPL is gaining popularity with B2B businesses

BNPL has been a major disruptor in B2C eCommerce since it emerged over a decade ago. The adoption of digital payment technology has been slow in the B2B space, but commerce trends are changing as B2B suppliers step up to meet the demands of younger buyers who want a B2C payment experience.

A recent study showed that 49% of all B2B spending now takes place online, with 68% of B2B buyers planning to increase their use of digital shopping channels. 79% of B2B suppliers say they want to receive digital payments.

The biggest advantage of BNPL for B2B is that it’s a payment solution which has clear advantages for both parties in the transaction.

The shift towards flexible payment solutions

Traditionally, B2B transactions relied on manual systems with purchase orders, stacks of loan paperwork, and rigid payment terms (e.g. Net 30 or Net 60). 

While these systems have worked well for decades, they can create cash flow constraints for sellers, and limit a buyer’s purchasing power. BNPL addresses all of these challenges by:

• Providing instant financing to buyers, allowing them to spread payments over time
• Reducing credit risk for sellers by outsourcing underwriting to BNPL providers
• Improving cash flow for both parties by ensuring sellers get paid upfront, while buyers pay in installments over a specific time period
• Giving buyers the ability to make bigger, more frequent purchases

Let’s take this as an example. Say you’re a wholesale restaurant distributor that sells kitchen equipment to cafes. Under a traditional lending agreement, you might require a minimum order of $5,000 with Net 30 terms, which could put significant financial strain on small cafe owners.

By integrating BNPL into your sales workflow you could effectively allow your buyers to purchase in installments over 12 months, leading to a significant increase in order volume, and faster deal closures. With BNPL, your business gets paid in full upfront, which means more predictable cash flow and less administrative stress for your team.

Choosing the right BNPL provider for your business

It goes without saying that you need to do your due diligence before choosing a BNPL provider. Integrating BNPL isn’t as simple as flipping a switch (although we get pretty close at Credit Key!).

To ensure a seamless experience for both your business and your customers, you’ll need to make sure the provider is trustworthy, offers the features that are most important to you, and can integrate seamlessly with your existing tech stack and processes.

Unlike consumer BNPL purchases, B2B transactions involve larger order values, stricter credit checks, and unique invoicing needs. If you choose the wrong BNPL provider, it can end up being a costly mistake.

Here’s a quick overview of factors to consider:

Credit risk assessment and underwriting capabilities

• Look for providers that specialize in B2B BNPL rather than consumer-focused solutions
• Ensure they have a robust credit check mechanism in place to reduce risks

Integration with your website and checkout process

• Choose a BNPL provider that integrates seamlessly with your web platform (e.g. Shopify, Magento, WooCommerce)
• Allow buyers to pre-qualify for BNPL financing before reaching checkout to increase conversion rates at checkout

Payout speed and cash flow management

• Some BNPL providers pay merchants upfront, while others pay after the first installment
• Check the provider’s payout structure and see how it aligns with your cash flow needs
• If instant payouts aren’t available, check if the provider offers financing to bridge any gaps

Compliance, security, and fraud prevention

• Ensure the provider complies with all relevant financial and privacy regulations (e.g. the Fair Credit Reporting Act and GDPR)
• Look for features in the provider’s software that can prevent unauthorized transactions

Customer experience and support

• The end-to-end BNPL experience should be simple and intuitive for buyers
• A good provider will offer clear repayment terms, automated payment reminders, and flexible payment options
• Ensure that ongoing customer support is available in case you or your buyers have problems or questions

Read more: How to choose the right B2B embedded payments partner

What if you don’t have an eCommerce website?

BNPL isn’t just for online checkouts. You can also offer it via your offline sales channels. Many B2B merchants don’t have any eCommerce systems in place, choosing to offer offline and  invoice-based solutions instead. With BNPL, you can extend flexible payment terms through manual invoicing, email payment links, or direct sales portals. 

If your business operates primarily through sales reps, phone orders, or B2B marketplaces, you can integrate BNPL into your quoting and invoicing process, giving buyers the option to split payments — even without an online store.

Some providers also embed BNPL options within ERP or accounting software, so you can offer installment plans straight from your invoicing system. Whether you're selling online or through direct sales, BNPL can be tailored to fit your unique business model. No website checkout required!

Best practices for integrating BNPL with your website

To maximize its potential, BNPL needs to be seamlessly integrated into your website. It should be strategically positioned at multiple touchpoints, with payment terms clearly explained to your buyers.

Since B2B purchases often involve higher order values and longer decision-making cycles than B2C, your buyers will need reassurance, transparency, and accessibility when it comes to using a new BNPL payment option.

Here’s how you can optimize your website to effectively implement a buy now pay later solution and ensure a good conversion rate at checkout.

Promote BNPL early in the buying journey

B2B buyers often conduct extensive competitor research before making a purchase decision, so it’s essential to introduce BNPL as a payment option before they reach checkout.

One of the best ways to do this is by promoting BNPL on high-traffic pages, including your homepage, product pages, and category pages.

A homepage banner can immediately signal to potential buyers that flexible payment options are available, so they can click to learn more. Messaging like “Learn more about our flexible payment plans” or “Increase your buying power with BNPL” can help capture buyer attention and encourage them to explore further.

On product pages, BNPL should be featured near the price to emphasize affordability. Alongside displaying the full price, you can break it down into installment options. For example, if a product costs $2,000, include copy that states “Or payments as low as $X/month with BNPL”.

This subtle but effective callout helps buyers visualize the affordability of an item, reducing their hesitations and objections about placing an order. Adding a “Learn more” link that leads to a dedicated BNPL information page can provide buyers with the extra details they need to make an informed decision before purchasing.

Ensure the BNPL option is clearly visible at checkout

Offer BNPL as a clear payment option at checkout alongside your existing payment methods. The checkout process is a critical moment where buyers will decide whether to complete their purchase or abandon their cart.

BNPL at checkout can prevent drop-offs, reduce friction, and increase conversion rates, particularly for smaller buyers who may not have the budget for a large upfront payment. Merchants who offer BNPL options have seen up to a 40% increase in conversion.

Instead of listing BNPL as a generic payment option, make it visually distinct with specific terms. For example, instead of simply stating “Pay with BNPL”, you can help customers learn more about flexible payment options with copy such as:

"Net 30 or as low as $399/month"

Some BNPL providers allow buyers to pre-qualify for financing before completing their purchase. Adding a pre-qualification tool at checkout can help buyers understand their eligibility in advance, eliminating the frustration of being declined after selecting BNPL. This transparency improves trust and reduces last-minute cart abandonment.

Create a dedicated BNPL information page

Your buyers will likely have questions about how BNPL works when they land on your site. Creating a dedicated page can provide them with detailed information, address common concerns, and position BNPL as a trustworthy, flexible payment solution.

This page should answer key questions like:

• Who is eligible for BNPL financing
• What the payment terms are, including factors like repayment term length, interest rates, and late fees
• Whether BNPL can affect business credit scores
• What happens if a payment is missed
• Whether there are early repayment options

Including a BNPL FAQ section in your help center or support pages can further educate buyers and eliminate any uncertainties before they head to checkout.

Optimize for users on mobile devices

80% of B2B buyers use mobile devices in their buying journey, so it’s essential to ensure that BNPL is accessible for mobile users. Ensure that your BNPL messaging, banners, and checkout options are clearly visible and easy to navigate on small screens.

Things to think about for mobile-friendly navigation include:

• Large, clear fonts for installment payment breakdowns
• Fast loading of mobile checkout pages
• Tap-friendly buttons for selecting BNPL as a payment method
• Responsive pop-ups to explain BNPL without disrupting the checkout flow

Your entire BNPL experience should feel intuitive and seamless across all devices. If buyers have difficulty understanding or accessing BNPL on mobile, they may abandon their purchase and explore competitor options, rather than switch to using their desktop.

Use BNPL as a sales and marketing tool

BNPL can be a powerful tool that can help drive higher AOV, encourage repeat purchases, and improve customer loyalty. Highlighting BNPL in your marketing campaigns can attract more buyers and differentiate your business from competitors.

You could send promotional emails showcasing all the benefits of BNPL, or use targeted ads to promote BNPL financing, with a focus on high-ticket products or seasonal offers. Buyers who abandon their website shopping carts could be retargeted with focused messages emphasising the ease and convenience of paying with BNPL installments.

Track your BNPL performance and optimize over time

Once BNPL is integrated into your sales processes, it’s important that you monitor its impact on key business metrics over time. Look at KPIs such as:

• How many buyers select BNPL as a payment option
• Whether buyers spend more when using BNPL
• Whether buyers make more frequent purchases with BNPL
• Whether BNPL reduces cart abandonment

Regularly analyzing these metrics allows you to refine your BNPL strategy, improve messaging, and adjust terms to better serve your customers.

If you notice low BNPL adoption among your customer base, consider ramping up your marketing, testing different banner and button placements on your website, revising your messaging, and optimizing your checkout experience to encourage more BNPL purchases.

Make BNPL a growth driver for your business

Implementing BNPL effectively into your sales process requires more than just offering a new payment option to customers over the phone or on your checkout page. For optimal results, BNPL needs to be visible, accessible, and simple to understand and use throughout the buying journey.

As BNPL continues to reshape the B2B supplier industry, businesses that adopt best practices for integration, display, and optimization will be well positioned to stay competitive as the digital payment industry grows.