Global BNPL firms are entering into strategic collaborations to drive revenue growth

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Thinkific, a platform for creating, marketing, and selling online learning products, entered into a strategic collaboration with Stripe to reach more customers and drive increased sales. The strategy is part of its expanding portfolio of integrated solutions for business management and payments, including Thinkific Payments.

• For students, availability of BNPL schemes through providers like Klarna, Affirm, and Afterpay, will make it easier to access content immediately at a fraction of the total cost, while making remaining payments over a specific period of time. For creators, getting paid in full immediately, the availability of BNPL will allow them to reinvest their sales revenues into marketing efforts, which will subsequently lead to extended reach and accelerated growth.

During its ongoing beta testing of BNPL, Thinkific has revealed that it is observing higher average transaction sizes compared to not using them, indicating that Thinkific creators experience greater student purchases when offered with flexible payment solutions. Through the launch of BNPL feature, Thinkific is seeking to gain competitive advantage by making the platform more compelling for creators in the online education space, a niche that has been growing at an accelerated pace ever since the global pandemic outbreak.

Koverly, the global fintech firm, announced the launch of its B2B-focused BNPL platform, offering businesses with enhanced payment flexibility and reduced foreign exchange rates. The most noteworthy feature of the new KoverlyPay is the availability of a 30-day extension for FX payments, which incurs no additional cost for either the buyer or the seller.

• The demand for BNPL is growing in the B2B space, as deferring payments over four, eight or 12 fixed weekly installments, unlocks additional working capital. This subsequently leads to higher inventory turnover and potential annual profitability boost. Koverly's platform has gained substantial traction in the market, handling an annualized payment volume of US$200 million for both domestic and international transactions.

Koverly has raised US$7.6 million in seed funding, since launching in 2021, enabling the firm to develop a payment platform designed for international business trade, merging foreign currency management with B2B cash flow management. In addition to defer payment capabilities, Koverly provides businesses with reduced foreign exchange rates and eliminates wire transfer fees. The innovative business model, therefore, makes the service more attractive for businesses engaged in international trade.

With B2B payments driving the uptake of BNPL services in Europe, Hokodo entered into a strategic partnership with BNP Paribas to launch a B2B BNPL product, targeting revenue growth in the fast-growth B2B BNPL market.

• The launch of the B2B BNPL service by Hokodo and BNP Paribas comes two months after Hokodo partnered with Lemonway to enable B2B marketplaces in Europe offer B2B BNPL online.  European B2B e-commerce business has been underserved by traditional financing institutions. Consequently, Hokodo, in collaboration with BNP Paribas and Lemonway is seeking to deliver the financing solutions demanded by businesses across the region.

The B2B BNPL product offered by Hokodo and BNP Paribas gets integrated into the seller’s existing checkout systems, while delivering various financing options to meet the needs of merchants. The solution leverages Hokodo's B2B BNPL platform in collaboration with BNP Paribas' extensive financial expertise and robust financial resources to empower large multinational corporations in providing flexible payment options to their business clients.

• Allianz Trade also entered into a strategic alliance with Bueno.money to launch B2B BNPL offering. The launch of the B2B BNPL services in partnership with Bueno.money comes three months after Allianz Trade collaborated with Santander and Two for a BNPL solution for multinational companies.

These strategic partnerships are a clear indication that Allianz Trade is foreseeing a strong growth in the B2B BNPL market over the next five years. Going forward, PayNXT360 expects more such product launches in the B2B space from Allianz Trade in other regions of the world. Through their recent collaboration, Allianz Trade's E-commerce Credit Insurance will be utilized by Bueno.money. This will enable the provision of their deferred payment solution to eCommerce merchants, ensuring real-time transactions while maintaining protection against credit risks.