B2B Buy Now, Pay Later: A Huge, Emerging Opportunity (Arthur D. Little)

Summary

• B2B commerce was worth approximately US $120 trillion in 2022 across offline and online channels, according to Activant Capital.p.4
• ADL estimates B2B BNPL will capture 15%-20% of B2B commerce payments by 2030.p.4
• This would equal approximately $25-$30 trillion of BNPL volume.p.4
• Assuming average BNPL fees of 3%-4% per transaction, the total addressable market is between $700 billion and $1.3 trillion.p.4
• Suppliers should aim for BNPL approval rates of 80% and higher.p.2
• B2B BNPL is expected to enjoy high double-digit annual growth in the coming years.p.7

Key insights

1. B2B BNPL differs from trade credit because credit risk and underwriting are taken over by the BNPL provider.p.4
2. B2B BNPL is projected to become a trillion-dollar opportunity by 2030.p.4
3. Banco Santander launched a B2B BNPL solution with fintech Two and insurer Allianz SE.p.5
4. BNP Paribas partnered with B2B BNPL fintech Hokodo to launch a B2B BNPL solution.p.6
5. Adyen partnered with payment fintech Billie to offer B2B BNPL across Europe.p.6
6. Key risks for B2B BNPL include debt burden, transparency of fees and adverse selection.p.3
7. Banks can build in-house, partner with existing B2B BNPL players or introduce a banking-as-a-service offering.p.6