Shopify is a leading eCommerce platform that enables businesses of all sizes to sell their products and services online. With the rise of online shopping, many companies, including those that focus primarily on other businesses (B2B), have turned to Shopify to reach a wider audience and increase their revenues.

One of the key features gaining popularity on Shopify is Buy Now, Pay Later (BNPL) options. In this article, we’ll discuss how offering BNPL affects conversion rates for B2B transactions on Shopify.

First, let’s understand what BNPL is. BNPL is a payment option that allows customers to pay for purchases in installments rather than paying the entire amount upfront. This payment option has become extremely popular among consumers because it allows you to make purchases without breaking the bank.

However, until recently, BNPL had not been widely adopted in the B2B sector. By offering BNPL on Shopify, B2B companies can significantly increase conversion rates. This is because this option allows businesses to complete their purchase without having to pay the full amount upfront.

For B2B transactions, this means that companies can purchase large volumes of orders without fear of a direct impact on their cash flow. This flexibility can be a game-changer for companies that may not have the resources to pay for large orders upfront. As a result, B2B companies offering BNPL on Shopify will likely see an increase in conversion rates as customers are more likely to complete their purchases.

Moreover, offering BNPL can also attract new B2B customers to Shopify. Businesses that have never used Shopify before may be tempted to try the service when they see the BNPL option. This may also result in increased conversion rates for B2B transactions on Shopify.

Another important factor to consider is increasing customer loyalty. By offering BNPL, B2B companies can build trust and loyalty with their customers by providing them with a flexible payment option. This can lead to repeat purchases and word-of-mouth referrals, which further increases conversion rates on Shopify.

It is also worth noting that companies offering BNPL do not bear any financial risk. Services like Afterpay, Klarna, and Affirm that are integrated with Shopify take on the responsibility of ensuring that your business is paid in full. This means businesses can enjoy the benefits of BNPL without the worry of financial loss.