Get to Know BNPL: The future of flexible payment — InvoiceMate

5 min readJul 5, 2023


BNPL is the new buzzword, taking the shoppers’ world by storm. Let’s take a look at what BNPL is and what are the pros and cons of it.

What is BNPL

Buy now, pay later (BNPL) is a payment option that has gained significant popularity in recent years. It allows customers to purchase goods or services and defer the payment for them, often with little or no interest, and sometimes with no fees, by spreading the cost of the purchase over a period of time. BNPL services are typically offered by third-party providers who partner with merchants to offer the payment option at checkout.

The Good

BNPL is gaining popularity due to its flexibility, convenience, and ease of use. It allows consumers to make purchases without having to pay the full amount upfront, which can be particularly helpful for expensive items or unexpected expenses. It also provides an alternative to traditional credit cards and can be a more affordable option for consumers who may not qualify for credit cards or who are trying to avoid accumulating credit card debt.

One of the key advantages of BNPL services is that they can help people manage their finances more effectively. By allowing customers to spread the cost of purchases over time, BNPL services can make it easier for people to budget and avoid overspending. BNPL can also be a useful alternative to credit cards, as customers can avoid high-interest rates and fees.

The Bad

BNPL is a very useful payment method for many, however, there are some risks associated with BNPL services. For example, customers may be tempted to spend more than they can afford, and late payments can lead to additional fees and damage to credit scores. Additionally, some critics argue that BNPL services can encourage people to take on debt that they may not be able to afford.

It’s important to note that BNPL services may not be suitable for everyone. Some consumers may find themselves accumulating debt or overspending if they don’t use BNPL responsibly. As with any financial product, it’s essential to carefully consider the terms and conditions before using BNPL services and ensure that you can comfortably afford the payments.

How it Works

BNPL services are often provided by fintech companies. These companies typically partner with merchants to offer BNPL options at checkout. The merchant pays a fee to the BNPL provider for the service, and the customer makes payments to the BNPL provider over time.

Here is how BNPL typically works

  1. Selection and Checkout: The customer selects the BNPL option during the checkout process when making a purchase. This can be done either online or in-store, depending on the retailer and BNPL provider. The customer may need to create an account or provide some basic information at this stage.
  2. Approval and Payment: The BNPL provider assesses the customer’s eligibility for the service. This may involve a quick check of the customer’s credit history or other factors. If approved, the customer proceeds with the purchase without making the full payment upfront. Instead, they pay a fraction of the total amount, usually a small percentage or fixed fee.
  3. Scheduled Installments: The remaining balance is divided into equal installments or payments. The customer selects a payment schedule that suits them best, such as weekly, bi-weekly, or monthly payments. These payments are typically interest-free, meaning no additional interest charges are applied.
  4. Repayment and Completion: The customer completes the repayment by making the scheduled payments over the agreed-upon period. Once all the payments have been made, the customer has fulfilled their financial obligation, and the purchase is considered paid in full. Some BNPL providers may offer flexibility in adjusting payment schedules or allowing early repayment without penalties, while others may charge fees for missed or late payments.


For quite some time, BNPL was considered a consumer product, but considering the advantages, the business world is also adopting it for B2B transactions.

B2B BNPL, or Business-to-Business Buy Now, Pay Later, is a variation of the BNPL model that is specifically designed for business transactions. It allows businesses to defer their payments for goods or services they purchase from other businesses.

Here’s how B2B BNPL typically works:

  1. Agreement and Onboarding: The business seeking to use B2B BNPL services enters into an agreement with a B2B BNPL provider. This may involve creating an account or integrating the BNPL solution into their existing payment processes. The provider may also perform an eligibility check or credit assessment on the business.
  2. Purchase and Payment: The business makes a purchase from another business, typically for goods or services required for their operations. At the time of purchase, the business selects the B2B BNPL option as the payment method. Instead of paying the full amount upfront, the business defers the payment and opts for a payment plan.
  3. Payment Schedule and Terms: The B2B BNPL provider sets up a payment plan based on the agreed terms. The payment schedule may include factors such as the total purchase amount, the duration of the payment plan, and the frequency of payments. The payments are usually made in installments over an agreed-upon period.
  4. Repayment and Completion: The business makes the scheduled payments according to the payment plan until the balance is fully repaid. Once the final payment is made, the business has fulfilled its financial obligation to the B2B BNPL provider.

B2B BNPL solutions can provide businesses with greater flexibility in managing their cash flow by allowing them to defer payments and allocate funds to other critical areas of their operations. It can also help improve business relationships by providing more favorable payment terms. However, as with any financial service, it’s important for businesses to review the terms and conditions of the B2B BNPL provider, understand any associated fees or penalties, and ensure that the payment plan aligns with their financial capabilities.

InvoiceMate Pay Later

InvoiceMate is the world’s first blockchain and AI-Powered invoice management and financing solution. InvoiceMate acts as an invoice financing enabler. It offers a unique “Know Your Invoice” or KYI service. This service works with the inherent trust, transparency, and immutability of blockchain, along with AI algorithms to generate almost real-time invoice verification and credit scoring. This service replaces the tedious due diligence required for invoice financing. InvoiceMate offers a trustable invoice financing enabler that can be embedded into any financing system. InvoiceMate offers enablement of both receivable and payable financing solutions. InvoiceMate Pay Later is a BNPL solution for businesses. To learn more about InvoiceMate, visit us at

Final Thoughts

The future of BNPL is promising for both consumers and businesses. Experts predict continued growth and expansion in this industry. Some of the factors driving this growth include the increased adoption of e-commerce and the shift toward cashless payments. Additionally, younger generations are more likely to use BNPL services, which suggests that its popularity will continue to increase as these consumers gain more spending power.

As for businesses, it is a great way to manage their cash flow and working capital. With BNPL businesses can get flexible payment options on cash-hungry consumables and supplies.

Overall BNPL is revolutionizing the way we pay.

Originally published at on July 5, 2023.