Payment methods & price: How to choose a B2B Buy Now, Pay Later provider

Ethan Cumming
Content Writer

So far in our How to Choose a B2B Buy Now, Pay Later Provider blog series we have looked at four of the eight most important criteria to assess when considering your options. First we explored offer rate and tech performance, then ease of integration and solution flexibility. In the penultimate article, we are looking at money – specifically, we are examining how payment methods and the overall solution price can impact your final decision.

Payment methods

When we talk about payment methods we are referring to all the different ways that customers can choose to pay when settling any outstanding charges in line with their payment terms. This criterion might seem obvious, but it’s essential that the B2B BNPL solution provider you choose offers your customers a variety of the most appropriate payment methods.

Payment methods include credit card, bank transfer, direct debit, mobile payments and more.

Why do payment methods matter?

Put yourself in the shoes of your customer. You land on your store’s homepage, navigate to the products you need, fill your basket, click through to the checkout and choose to buy now, pay later only to find that your preferred payment method is not listed. At this point there’s a good chance your customer will abandon their cart and take their business to a competitor whose BNPL provider offers the right payment method.

But what exactly is “the right payment method”? The most convenient method varies depending on factors including but not limited to:

  • Order value
  • Frequency of purchase
  • Industry
  • Geographic location

If you partner with a leading B2B Buy Now, Pay Later solution provider, your customers won’t face the challenge described above. Instead, your partner will work with you to understand the most convenient payment methods and then present a selection of options that is comprehensive but doesn’t overwhelm the end customer. This will help to drive optimal conversion rates and improve the user experience of your checkout.

Beware of BNPL providers coming from the world of B2C whose solutions, adapted from consumer commerce, often rely heavily on credit cards as a payment method. This won’t work for your B2B store or marketplace as basket values often exceed standard credit card limits and business buyers are unwilling to use their personal cards for professional procurement.


The overall price of your new Buy Now, Pay Later solution is obviously going to influence your decision on which provider to partner with. What needs considering here is the cost of the solution in comparison with the value which it will create for you and your customers. A high quality solution worth its price tag will:

  • Boost revenue through improved average order value (AOV), increased conversion rates and an uplift in order frequency.
  • Not require any additional or unexpected payment processing fees.
  • Offer risk protection in case of buyer insolvency, protracted default, fraud, chargeback or any other default on payment.

Why does price matter?

You want clarity on your business case and to be in a position to compare cost against value. The price of many solutions is bloated by setup costs, late penalty fees, rolling reserves, clawbacks in case of non-payments and more, which can make it difficult to understand and compare with that of competing providers.

You also want a fee structure that aligns your interests with those of your provider. Market leading B2B Buy Now, Pay Later providers understand this and work with you transparently to come to an agreement.

You’ll know when you’re dealing with a leading provider because they will articulate a clear and specific business case that is adapted to your requirements, taking into account the overall price, payment terms offered, offer rate and the benefits you will experience. There shouldn’t be a lock-in period or any setup costs with a provider like this. Ultimately, you should be presented with a pricing structure that aligns all parties and their requirements.

At the other end of the spectrum, ill-equipped providers will likely present you with a price that doesn’t take into account the specifics of the deal and how the BNPL solution will impact your business. You’ll be able to spot these providers when they make opaque offers or quotations that don’t refer to the associated offer rate. In fact, we frequently meet merchants who went for a cheaper solution without realising that this came at the expense of the offer rate, thereby penalising conversions. How frustrating it is when you find out that your provider doesn’t cover your best customers – the ones who most deserve longer payment terms! 

If you would like to find out more about the extensive payment methods available within Hokodo’s B2B Buy Now, Pay Later solution or begin discussing the cost of our solution tailored to your individual business needs, we would love to hear from you. Book a demo today to get started.

Join us next time for the last instalment in this blog series where we’ll discover the final two most important criteria to assess when choosing a B2B BNPL provider: collaborative approach and risk platform.

Download our ebook today and learn how to identify the right payments partner for your business.