Buy Now Pay Later

Buy Now, Pay Later (BNPL) is one of the most popular trends in business-to-consumer (B2C) payments. Many millennials and Gen Zs are foregoing traditional credit card payments—and the accompanying high interest rates—in favor of interest-free instalment payments. With such a high demand for consumer BNPL, Canada has seen an increased interest in BNPL products in the commercial space. Now extending further than just to end-consumers, BNPL benefits are now being offered by suppliers and wholesalers to their business buyers. Together, these groups are key in the overall functioning of the Canadian economy; and amongst the business buyers, small businesses contributed almost half of Canada’s GDP in the private sector in 2020, and facilitated crucial transactions across t he country. A number of solutions in the market currently compete to satisfy this increasing demand for commercial-focused BNPL products. This paper serves as a guide to the lending ecosystem for business-to-business (B2B) BNPL loans and highlights the benefits of BNPL products.