Buy now, pay later finds growth in healthcare, B2B
With inflation driving greater spend introspection, Buy Now Pay Later (BNPL) continues to diversify into new use cases and verticals, building on the fashion industry where it started.
From healthcare to B2B applications, installment payments are coming to almost every point on the business compass as businesses experience the advantages offered by BNPL over traditional trade credit and financing tools.
BNPL for B2B is considered a $1 trillion market.
“It’s a very different approach [from traditional BNPL for businesses],” said Jamie BeaumontCEO of British company BNPL Player, in a May PYMNTS interview. “It’s almost like post-purchase, where we give all the control and optionality over how people pay and how long the terms are to the companies that are paying. That’s obviously a huge benefit for the vendor who also seeks to be paid within 24 hours.
Read more: To avoid failure, BNPL for Business should be customized and not cloned
German Fintech B2B BNPL billy make a deal with Klarna at the end of last year, integrating the two services and allowing merchants already integrated with Klarna for consumer use to switch to the Billie BNPL payment platform for B2B purchases.
“Billie’s newly implemented payment methods can be directly activated by the companies themselves and are seamlessly integrated into Klarna’s payment process,” October 11. Press release declared. “No additional technical steps are required by online retailers.”
Billie Co-founder and co-CEO Matthias Knecht told PYMNTS, “I strongly believe that the need for this type of product is everywhere – it’s just everywhere. You look at the buyers and the challenges that those commercial buyers face, and it’s exactly the same in every country. “
See more : Billie CEO on Becoming the ‘Klarna’ of the B2B Marketplace Buy Now, Pay Later
BNPL’s Third Wave
Healthcare offers another strong use case for installment payments. In “The Payment Cure: How Improving Billing Experiences Impacts Patient Loyalty,” a PYMNTS report with research sponsored by CareCredit33% of patients surveyed said they had not received the health care they needed, citing primarily an inability to pay.
Get the study: The payment cure
According to the study, 41% of users of alternative healthcare payment plans “helped them manage their other bills or expenses. Consumer interest in alternative payment options is high: 45% of all patients would be interested in using these types of payments in the future and 26% say they are ‘very’ or ‘extremely’ interested in these options.”
CareCredit offers a consumer credit product which is not strictly BNPL but provides a line of credit to pay medical bills which is then paid off like any other credit card.
In the education sector, BNPL pure play To affirm funds “nanodegrees” covering various areas of finance and technology for the Udacity learning platform in its “Learn now, pay lateroffers at an average cost of $2,000, with courses and loans to be completed in six months.
Nandan ShethBNPL FinTech CEO Separate ittold PYMNTS in March that this was BNPL’s second wave, as the adaptable concept moves into other areas, transforming the credit landscape, especially for high-ticket purchases including the first wave of FinTechs general public stayed away.
Read more: The third generation of BNPL has the potential to reshape the entire credit industry
“Higher tickets were a bit more difficult for pure games,” Sheth said. “For us, it’s kind of our sweet spot. If you look at our average ticket, it’s almost $1,000. Some of the others are in the $200 range. We’re removing the open to purchase and unlocking that.