B2B BNPL Vs. B2C BNPL: Compare the ultimate BNPL App Solutions
The Buy Now, Pay Later (BNPL) is broadly extending as the best payment solution among consumers and businesses. It has evolved as the financing model for managing online and offline purchases. Moreover, many B2B companies have also utilized this payment option. It enables businesses to smoothly manage the payment of bulk orders.
One of the best examples of BNPL is Klarna. Being started as a fintech B2B, it has now become a B2C BNPL app solution. It offers B2C payment services to customers on their online purchases. Although Klarna has also partnered with big eCommerce companies to process their payments.
So, if you want to make your business in the BNPL sector, you can learn from our article how to create a BNPL app like Klarna. Are confused about B2B and B2C BNPL types? Read through the article and then choose the appropriate one.
What is B2C Buy Now, Pay Later (BNPL)?
B2C (Business-to-Consumer) Buy Now Pay Later is the customer-centric payment model. It has been developed to simplify the payment hassle for customers shopping. The BNPL app is a short-term financing solution that businesses offer to customers. Majorly it is prevalent in the retail and eCommerce sectors.
The shopping bills of the customers are paid fully by the BNPL provider. However, customers have to pay the amount later in split installments. It enhances the purchasing power of the customers. The amounts have to be paid over a fixed period without incurring any interest. Only a late fee applies if you pay after the due date.
What is B2B Buy Now, Pay Later (BNPL)?
B2B (Business-to-Business) Buy Now Pay Later is a payment mechanism designed only for businesses. Although it is similar to B2C it performs transactions among the businesses. Any kind of business can purchase goods or services from other businesses and settle payments immediately by using BNPL app solutions.
Accordingly, the B2B BNPL provider settles the bill, and businesses have to defer payment over the predefined time in installments. B2B Buy now, pay later benefits in managing the cash flow of the business. It divides the total amount payable into equal installments. So, businesses can maintain payment and allocate funds simultaneously.
With the hype of BNPL in both B2C and B2B, many businesses have adopted this payment method. However, they are extensively different from each other. Let’s elaborate on the main differential points.
Key Differences Between B2B and B2C BNPL App Solutions
Transaction Fees
The B2B BNPL solution usually charges lower transaction fees as the business performs numerous transactions daily. BNPL solutions with B2C competency have high fees on each transaction. Because the fees compensate for the risk of lending money to an individual.
Payment Terms
It’s obvious that B2B and B2C have variations in their payment terms. When two businesses deal directly with each other the sum amount is large and the payment settlement period is also prolonged to several months.
On the other hand, B2C has typically a small duration of repayment terms with diverse small amounts. Moreover, if the due date for payment exceeds, you will be charged with late payment fees. It will also impact your credit score adversely and become problematic for future borrowings. So, BNPL users have to maintain timely repayment.
Repayment Schedule
The repayment in B2B is scheduled in several installments and due dates. It can be customized to weekly, bi-weekly, and monthly based on business mutual understanding. B2B BNPL is a more flexible payment model for enterprises ordering bulk goods supplies.
B2C buy now pay later solution provider gives installment payments on a weekly or monthly basis. It also depends on the specific repayment terms of your BNPl app solution. So, customers can get a complete overview of their payment breakdown with due dates.
The Bottom-line
Summarizing both the B2B BNPL and B2C BNPL, you have understood how it will affect the payment processing. B2B is among businesses and hence undertakes business purchases. Whereas, B2C is about customers purchasing from online businesses. Even if you have your own finance firm, you can transform it into a BNPL app. An app development company will assist in building a BNPL app solution. You can connect with us for project discussion.
