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The BNPL Boom and the Power of Instant Gratification in CX

B2B buyer uses BNPL in Australia

How buy now, pay later provides the flexibility that covid-era buyers expect from their B2B payments experience.  

The covid-catalyst and accompanying shift in buyer habits has only reinforced the  instant gratification demand within the B2B customer experience. Ingenuity in strategy shifts across the B2B landscape in the wake of  digital expansion has made room for  shifts in power industry-wide. Businesses agile enough to respond to the wishes of the buyer in this new digital landscape could find themselves on the precipice.  As these patterns of disruption continue to establish themselves into 2021, an opportunity presents itself for B2B businesses with a keen focus on customer experience.  

IBISWorld predicts the ‘buy now, pay later’ industry will grow from bringing in about $679.9 million in revenue this financial year to $1.1 billion by 2024-25. 

As the buy now, pay later (BNPL) trend grows within a digital B2C market, so too do the expectations in B2B procurement. With more people forced online for their purchases than ever before, the customer field has widened significantly. It’s not just Millennials bucking the credit card trend. In the month of May alone, Australians dumped more than 100,000 credit cards, taking the number of cards in operation back to levels unseen since 2009.  

Australia’s BNPL sector is booming as businesses flock to PAYG solutions amidst Coronavirus uncertainty. 

In an increasingly crowded financial tech market, new BNPL entrants are throwing their hat in the ring at a steady clip -a majority of them unlikely of them to scale without consolidation. In an industry currently unregulated, finding a vetted partner is key. As the reality of regulations becomes more concrete, many of those buy now, pay later companies will be forced to make significant changes to the way they do business. Any changes to customer experience however would pose a serious threat to any merchants on their platform, leaving them with some tough decisions to make if they’re going to meet buyer expectations.  

While corporate watchdogs and regulators continue to circle, the risks to consumers are clear. Buy now, pay later holds great alure, especially during the cash-strapped Covid economy, but critics counter that it could put users at risk for financial strife without a proper credit management plan in place. Although the tech is new, many of the risks are old: that consumers will take on more debt than they are able to pay. Without a proper partner in place, B2B businesses expose themselves to more than just market volatility; organizations should brace themselves for the onslaught of collections required to chase payments and capital to extend to customers to buy now, pay later.  

Exceeding Buyer Expectations with Buy Now, Pay Later for Business 

Despite the impending upset to Australia’s BNPL sector though, B2B sellers continue to hop aboard the PAYG trend. To ensure they aren’t on the hook if and when regulations change, savvy organizations can win big by outsourcing their payment solutions to experts like MSTS. 

Sellers can act as consumer advocates by providing a credit management program alongside their buy now, pay later program. 

Credit as a Service® (CaaS), from MSTS, is a global B2B credit and A/R management program built to save working capital, reduce risk and improve A/R efficiency. Buyers receive a credit approval or decline (decision) within seconds to complete a purchase in the same visit as researching the item, and auto-decisioning ensures that terms are extended responsibly. CaaS extends net terms, handles invoicing, and manages collections, wrapped in white-label service. We process more than $6 billion in transactions on behalf of our clients annually, in 190 countries and 17 currencies.  

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