How BNPL is unlocking growth potential for SMEs

The Buy Now Pay Later (BNPL) market has taken B2C spending by storm, with studies now suggesting that the BNPL transaction value will rise by 106% globally by 2028, positioning BNPL is a major tool in unlocking consumers’ purchasing power.

Meanwhile, the B2B sector is beginning to play catch up. With a market size five times larger than B2C, B2B provides an abundance of growth opportunities for leading BNPL providers. Reports now state that the B2B BNPL market is expected to reach over £14 billion in global spend. But, with sole proprietorships comprising 56% of the UK's total business population, it will be B2B leaders that bring those businesses along on the BNPL journey that will yield the most success from the phenomenon.

Payl8r recently worked with Faces, the leading digital consent and booking system, to enhance the business service offering to its customer base of four million small business owners across the aesthetics industry. To improve the efficiency and support the growth of Faces' business model, we set out to further develop Faces' ecosystem as an all-in-one platform for small businesses in the aesthetics industry, bringing everything into one place. Our partnership saw seamless API integration of BNPL within the system, helping to provide a one-stop shop for bookings and payments via the Faces app and Faces Pharmacy.

Improved cash flow management

Similar to traditional ‘pay on account’ systems widely used in B2B transactions, applying BNPL to B2B purchases helps businesses manage their cash flow more effectively. By allowing businesses to defer payments for purchases, BNPL helps maintain liquidity and continue operations without having to pay upfront.

By bringing this option to Faces’ practitioner base, we are able to support sole traders and small business owners, with managing operational expenses, allowing them to invest without immediately depleting cash reserves​. This is particularly helpful for a sector which requires practitioners to purchase supplies for each customer. Faces Pharmacy grants further access to practitioners purchasing stock, and the BNPL option allows practitioners to budget their spending interest-free, preventing rapid cash diminution.

Increased sales and customer acquisition

The addition of BNPL in B2B enables products and services to become more accessible to other businesses that may otherwise be hesitant to make large purchases upfront. By offering instant credit at the point of sale, SMEs can attract a broader customer base, including newer businesses that may not qualify for traditional credit lines.

Due to Faces’ broad B2B network of small business owners, we were able to further extend the BNPL offering to their clients. This means that by using Faces, practitioners can offer their customers a finance option that would otherwise be unavailable to sole traders, giving them a major competitive advantage in their market.

B2B BNPL – a tried and tested method

Since beginning our partnership with Faces, the business has seen 30% of its total customers use the Payl8r finance option for treatments and, over 150 users per day show interest in this option. Overall, Faces has 100k users, 55k of which are clinics and this sees five thousand treatments booked per day through the app. Faces and Payl8r are trailblazing the way for SMEs, granting access to financial solutions that provide a competitive advantage by improving cash flow and enhancing purchasing power. All of which give sole traders or clinics a competitive edge within the industry.

This modern approach is driving consumer purchase in this sector and giving SMEs a greater competitive advantage within their respective field. As BNPL continues to grow, global users are expected to reach 900 million by 2027, the power behind B2B BNPL simply cannot be underestimated.