BNP Paribas relies on Hokodo to launch a Buy Now, Pay Later B2B solution

Today, Hokodo, in partnership with the BNP Paribas banking group, is offering a B2B Buy Now Pay Later (BNPL) solution. It allows large multinationals to offer their business customers this payment alternative.

FACTS 

• Hokodo brings flexibility and a technology platform to the partnership, complemented by the expertise and financial strength of BNP Paribas.

• The B2B Buy Now, Pay Later solution offers a 100% digital experience and easily integrates with existing checkout systems via API.

• The solution provides:

  • Instant buyer approval through real-time credit scoring based on a configurable underwriting model and acceptance rate that adapts to the B2B seller's business, based on:

    • his sector of activity

    • the type of customer

  • Financing,

  • Credit insurance and fraud,

  • Electronic money order collection and dunning.

CHALLENGES 

• Offer an all-in-one solution to their payment value chain : With the rise of digital B2B sales, B2B sellers demand a simplified, centralized experience from order to payment.

• Provide a frictionless customer journey : retailers want to receive payments in real time without worrying about credit risk or fraud, while offering their buyers a seamless shopping experience and favorable credit terms via any channel.

• Offer payment convenience to increase conversion rates and average basket : have a tangible positive impact on sales, encourage repeat business and increase average basket.

MARKET PERSPECTIVE 

• Today's retailers expect players to provide seamless payment solutions to boost conversion rates and average basket. Recently, Ayden and CB Banking Group have been focusing on the subscription business model with automatic renewal of credit card data to reduce customer churn, thereby providing a frictionless payment experience.

• In addition, in the credit scoring space, MiTrust and Algoan's new offering has recently confirmed the importance of data transparency and giving consumers choice in data transfers between players for an improved customer experience.

• We can see that the BNPL market is still dynamic and that its business model is closely linked to the subscription and rental business models for consumer goods. The notion of ownership is being challenged by new uses. Offers are beginning to emerge at the convergence of these two categories, such as :

  • From the French start-up Elyn, which offers a solution that allows customers to order and gradually deduct the price of a purchase. The concept is to try before you buy (Try Before You Buy). 

  • Or, the company Menone, surfing on the rental of clothing, with the possibility of renting for a maximum period of 7 months, intermingled with the possibility of buying, an offer straddling the BNPL, rental and subscription.