The Trillion-Dollar Shift: How B2B BNPL is Revolutionizing Global Commerce

Mid East Info

13-01-2025

Expectation of B2B BNPL transaction volume by 2030 is $25-$30 trillion
The share of B2B payments BNPL is projected to capture 15%-20% by 2030
The BNPL potential market value to reach 700 billion to 1.3 trillion by 2030
Dubai, UAE – December 13, 2024: Arthur D. Little (ADL) has unveiled its latest report, A Trillion-Dollar Opportunity , which explores the transformative potential of B2B Buy Now, Pay Later (BNPL) solutions in reshaping global trade. With global B2B commerce valued at $120 trillion in latest available data in 2022, the report highlights how businesses are increasingly adopting BNPL to navigate liquidity challenges, enhance supply chain efficiency, and accelerate growth in the digital economy. According to ADL, B2B BNPL is poised to capture 15%-20% of global B2B payments by 2030, unlocking $25-$30 trillion in transaction volume. With an average fee of 3%-4% per transaction, this represents a potential market value of $700 billion to $1.3 trillion.
Closer to home, we are seeing some developments in this space too. Both UAE and KSA have introduced regulatory frameworks for the BNPL sector. Foodics in KSA has launched one of the first examples of B2B BNPL for its food and beverage clients, allowing them to pay for subscriptions and hardware through BNPL. Mala the Saudi fintech announced a $7m investment for its B2B BNPL platform and Comfi in UAE announed that I has secured a $5m debt facility to expedite its B2B BNPL offering.
'B2B BNPL is not just a financial innovation—it is a catalyst for global commerce,' said Arjun Vir Singh, Partner and Global Fintech Lead at Arthur D. Little. 'As businesses seek more efficient ways to manage payments and strengthen supply chains, BNPL offers unparalleled flexibility and scalability in today's dynamic market.'
The report draws attention to the scalability of B2B BNPL solutions by citing Germany as an example. In 2022, B2B online sales in Germany reached $467 billion, accounting for 6.4% of the country's total B2B commerce volume and representing a market five times larger than Germany's B2C online market. This example underscores the immense potential of B2B BNPL in well-established markets with significant digital adoption.
The adoption of B2B BNPL is also being driven by the need for improved liquidity solutions among small and medium enterprises (SMEs) worldwide. Currently, 30%-50% of global B2B transactions are facilitated by trade credit, which places credit risk on suppliers and often creates inefficiencies. B2B BNPL offers a streamlined alternative by providing instant credit approvals, reducing administrative burdens, and allowing suppliers to receive immediate payment while buyers benefit from flexible repayment terms.
The report emphasizes that B2B BNPL goes beyond traditional payment methods to address persistent challenges in global trade. Its digital nature simplifies cross-border transactions by standardizing payment terms and reducing complexities in currency exchange and settlement processes. Furthermore, the high double-digit annual growth rate projected for the B2B BNPL market underscores its alignment with the ongoing digital transformation of global commerce.
'B2B BNPL is redefining the future of trade financing,' added Mohammad Nikkar, Principal at Arthur D. Little, Middle East. 'With its ability to tackle liquidity challenges, streamline commerce, and support global trade, BNPL is becoming an indispensable tool for businesses navigating today's fast-changing economy.'
As businesses worldwide continue to embrace digital-first solutions, B2B BNPL is emerging as a cornerstone of embedded finance, enabling companies to enhance cash flow, reduce financial risks, and foster long-term growth.
For further insights into Arthur D. Little's findings, visit the link here.