Whilst the B2B BNPL sector is still in its infancy, the market is evolving rapidly as the ecosystem continues to grow at a significant pace. In 2022, a growing amount of venture capital and private equity funds entered into the B2B side of the buy now pay later (BNPL) industry. Seen as a lucrative growth opportunity, amid the heightened inflation that has put pressure on small and medium-sized enterprises, many new players, including banking institutions are foraying into the B2B BNPL market.
The partnership between the three business entities comes at the time when Two and Allianz Trade partnered earlier in 2023 to provide small and medium-sized enterprises with financing solutions in the United Kingdom. On the other hand, Allianz Trade and Santander were exploring opportunities to fund large projects. To facilitate large B2B sales, these business entities have entered into a single collaboration to offer instant payment technologies to corporates.
In 2023, the B2B BNPL sector is projected to expand rapidly due to the current economic challenges faced by small and medium-sized enterprises. Consequently, providers have continued to raise growth rounds to expand their services.
Like Tranch, Mondu is also planning to use the capital round for driving its market growth, while also funding the development of new products. The B2B BNPL market is also gaining strong growth momentum in the Asia Pacific region, where firms are attracting venture capital and private equity dollars.
Amid the growing shift and focus on the B2B space and to capitalize on the high growth potential of the B2B BNPL market, firms are also entering into strategic collaborations and partnerships in the global market. actyv.ai, for instance, entered into a strategic collaboration with RATNAAFIN, an India-based NBFC firm. The strategic alliance is part of the firm’s strategy to facilitate embedded B2B BNPL offerings for micro, small, and medium enterprises. Similar trends have been observed in the European market, where the B2B BNPL sector has gained widespread popularity.
With many industries catching the trend of the B2B marketplace, there is a lucrative growth opportunity for financial institutions by offering seamless and quick payment solutions to businesses. In 2023, many more financial institutions, including innovative startups and incumbents, are expected to tap into the massive growth area of B2B BNPL. Consequently, the B2B BNPL ecosystem is expected to expand further and record strong growth over the next 12 months in the global market.
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