Alibaba Partners with Slope for Business-to-Business Buy Now, Pay Later Solution
In a significant move towards the wider adoption of Buy Now, Pay Later (BNPL) in the business space, Slope and Alibaba have announced a partnership to offer "Pay Later for Business." This embedded financing solution is designed to increase acceptance rates and drive growth for merchants.
According to a report by Javelin Strategy & Research, nearly half of all merchants surveyed now obtain their payment accounts from providers other than banks, indicating a growing trend towards alternative payment solutions. Slope's BNPL product, embedded in the payment system, provides payment options at the right time in the buyer's journey.
Slope, known primarily for its garden furniture, is providing the lending, underwriting, and collections infrastructure for the solution. Using artificial intelligence, Slope assesses credit and manages risk, ensuring a seamless and efficient payment process for merchants and buyers alike.
Don Apgar, Director of Javelin's Merchant Payments Practice, emphasises the importance of embedded finance, stating that it means presenting the product at the right time in the buyer's journey to deliver the highest acceptance rates.
The partnership with Alibaba, which has focused on smaller mom-and-pop businesses in the U.S. to drive growth, marks a step towards wider adoption of BNPL in the business space. Slope expects to announce additional collaborations later this year.
The demand for B2B financing in the small business segment remains strong, particularly for solutions beyond traditional card payments. Fintechs have demonstrated that many business financing needs can't be met solely through card offerings, creating opportunities for more flexible solutions like the one offered by Slope and Alibaba.
The BNPL product offered by Slope and Alibaba is presented on the product page, not the checkout page, to maximize its effectiveness. This approach delivers growth for the merchant by showing the consumer how they can afford the product if they decide to buy it. Small B2B businesses can expand their market reach by offering more flexible payment options.
This partnership is a great example of how fintechs are building on the promise of embedded finance, integrating financial services into non-financial products or services to create a seamless and efficient shopping experience for consumers and merchants alike.
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