When it comes to financial innovation, few concepts have shaken up the landscape quite like Buy Now, Pay Later (BNPL). What began as a consumer-centric offering led by household names like Klarna and Afterpay has now matured into a $100+ billion global market. But in 2025, the real BNPL revolution is happening in B2B.
Driven by the rapid rise of B2B e-commerce and the growing demand for flexible business credit, BNPL for B2B is becoming a key tool for sellers in wholesale, manufacturing, and online marketplaces. More than half of the world’s top B2B marketplaces already offer—or plan to offer—BNPL solutions. The payoff? Faster deal cycles, improved cash flow, and significant reductions in operational hassle.
This article is your 2025 guide to understanding B2B BNPL: what it is, why it’s booming, and how it’s shaping the future of digital trade credit.
Table of contents
1. What is Buy Now Pay Later?
2. Why B2B BNPL and why now?
3. How does B2B Buy Now, Pay Later work?
4. What are the benefits of B2B BNPL?
5. Why not just offer trade credit in-house?
6. What industries benefit most from B2B BNPL?
7. What B2B BNPL solutions are available?
What is Buy Now Pater Later?
BNPL is a short-term financing model that allows customers to delay payment. In the B2B space, it gives buyers the ability to purchase now and pay later—usually with 30, 60, or 90-day net terms—without the need for a traditional credit line.
Unlike legacy trade credit systems, modern B2B BNPL solutions use instant underwriting, fraud detection, and embedded finance tools to create seamless checkout experiences. It's not limited to e-commerce either; telesales teams, field reps, and online portals can all offer this form of flexible B2B payment.
Why B2B BNPL and why now?
Traditional in-house trade credit has long been the default, but it's inefficient. Credit checks, manual onboarding, collections—it’s time-consuming, risky, and resource-heavy. In a digital-first economy, it no longer meets the needs of today's B2B buyers.
And those buyers? They’re changing. Millennials now make up the majority of B2B decision-makers, and they expect the same speed and ease they experience as consumers. According to McKinsey, 96% of B2B buyers are comfortable purchasing via digital, self-serve channels.
In parallel, macroeconomic pressure has made working capital optimization a top priority. Businesses need financing tools that are fast, flexible, and scalable—making BNPL for B2B an ideal fit.
How does B2B Buy Now, Pay Later work?
At its core, B2B BNPL solutions like Two follow three pillars:
- Real-time credit checks: Buyers are automatically assessed and approved at checkout—no paperwork, no waiting.
- Instant seller payouts: Merchants receive upfront payment from the BNPL provider, eliminating cash flow delays.
- Automated invoice management: The provider handles dunning, collections, and credit risk, so sellers can stay focused on growth.
These functions are powered by advanced risk engines, embedded integrations, and scalable APIs that work across platforms—from Shopify to ERP systems.
What are the benefits of B2B BNPL?
1. Faster cash flow
Get paid immediately while offering customers extended net terms. That’s instant liquidity with zero impact on your balance sheet.
2. Lower risk
BNPL providers take on the credit risk, using real-time underwriting and fraud controls to protect sellers from non-payment.
3. Higher conversion rates
Flexible B2B payment options reduce cart abandonment. Merchants offering BNPL report conversion rates increasing by 20–30%.
4. Bigger deals
Buyers are more likely to spend more when they can delay payment. Some businesses report up to a 60% lift in average order value (AOV).
5. Leaner operations
Automation means fewer manual processes in finance, sales, and customer support—translating to serious time savings.
6. Better buying experience
No tedious credit applications. Just a frictionless, self-serve checkout with embedded net terms.
7. Stronger loyalty
A streamlined purchasing experience fosters long-term buyer relationships and increases repeat orders.
8. New customer segments
BNPL opens the door to small and midsize businesses (SMBs) that may lack access to corporate credit or upfront capital.
Why not just manage trade credit in-house?
It’s a fair question - but consider the downsides:
- Time-consuming credit assessments
- Risk of unpaid invoices
- High administrative overhead
- Cash flow uncertainty
- Limited scalability
Modern B2B BNPL solutions solve all of these challenges while freeing up internal resources and improving the buyer journey.
What industries benefit most from B2B BNPL?
B2B BNPL adoption is soaring across sectors, including:
- Wholesale & distribution: High order frequency and fast-moving inventory make BNPL a natural fit.
- Manufacturing: Large orders and long production cycles demand better liquidity.
- B2B e-commerce & marketplaces: Embedded BNPL increases buyer confidence, boosts AOV, and shortens decision cycles.
- Construction & trades: BNPL enables contractors and suppliers to better manage cash flow and procurement.
What B2B BNPL solutions are available?
Several providers now offer B2B-focused BNPL solutions, including Two. Key differentiators include geographic coverage, risk management capabilities, financing partners, and ease of integration.
Two stand out for their native integration with tools like Shopify and their ability to automate B2B payments while giving sellers instant payout. It’s never been easier to offer net terms while staying financially secure.
In 2025, BNPL for B2B is no longer just a nice-to-have—it’s becoming a must-have. As sellers compete in a digital-first landscape and buyers demand seamless, flexible payment terms, the ability to offer credit without risk or delay is transforming B2B commerce.
Whether you’re a merchant scaling your online presence or a distributor optimizing your working capital, embracing B2B BNPL could be the key to unlocking your next phase of growth.
Want to stay ahead of the competition? Explore how Two is building the next generation of B2B BNPL and discover how smart, instant trade credit can unlock new growth for your business.
