Rising demand leads to new product launches driving competitive landscape in the global B2B BNPL market

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New product launches are led by strategic collaborations between fintech firms, traditional financial institutions, and BNPL providers in 2023. These alliances aim to reach new customers, expand in new regions, and drive revenue growth while improving underwriting and credit offering services. 

To provide businesses with the right tools and efficient credit terms, Allianz Trade Asia Pacific and Bueno.money entered into a collaboration for launching B2B BNPL product, which integrates into the merchants’ websites.

• 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.

With global trade growing at a rapid rate and BNPL becoming a must have financing service for businesses worldwide, Allianz Trade foray into the sector is projected to aid the revenue growth for the firm from the medium to long-term perspective.

Mondu, a German-based BNPL provider, is seeking to tap into the growing demand by launching its B2B BNPL product for businesses in the United Kingdom. The launch in the UK market comes on the back of its recent expansion in countries like the Netherlands and Austria.

• To fund its regional expansion, Mondu also raised US$13 million as part of its Series A extension in Q1 2023. This means that the firm had raised a total of US$90 million since its inception in October 2021. With further expansion in sight, PayNXT360 expects Mondu to raise another funding round from venture capital and private equity firms.

The United Kingdom holds the second-largest position in Europe's B2B commerce sector, highlighting a significant requirement for BNPL services. This need is also evident from the growing number of players offering BNPL products in the country. As part of its expansion strategy, Mondu also entered into a strategic collaboration with Acquired.com in July 2023. The collaboration will enable Mondu to reach more businesses across Europe, subsequently driving its revenue growth from the short to medium-term perspective.

Cashfree, one of the leading payment gateway providers in India, announced the launch of a new product termed BNPL Plus in July 2023. The service aims to streamline online payments for D2C brands in India.

• With more consumers looking for flexible payment solutions amid uncertain economic conditions, merchants are also demanding services that results into higher conversion and sales. Consequently, to make its payment gateway more appealing to D2C brands, Cashfree launched BNPL services. The BNPL Plus solution offered by Cashfree enables customers to view different payment methods, including EMI, pay later, and others, while shopping for D2C brands.

With more 100,000 businesses using payment gateway services offered by Cashfree, the launch of BNPL Plus is projected to further support the growth of the broader BNPL market in India over the next three to four years. The solution is easy to integrate with online websites and also those that are hosted on WooCommerce and Shopify.