The B2B BNPL segment has emerged as a strong business model in the United Kingdom

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The B2B BNPL market has recorded strong growth in the United Kingdom in 2022, and the trend is expected to further continue in 2023. Amid the growing traction for B2B BNPL, venture capital and private equity firms have also shown strong interest in the space. Hokodo and Playter are among the players that have attracted funding in the United Kingdom B2B BNPL market. To offer their services to more merchants, these firms are launching innovative plug-ins. For instance,

• In October 2022, Hokodo, the B2B BNPL firm, announced that the firm had launched a new plug-in, which allows merchants to offer instant credit to eligible buyers. The plug-in is available for Shopify merchants in the United Kingdom and has been designed with a simple implementation with no development work required.

The B2B space is expected to grow significantly over the next few years, as businesses need working capital to run their operations. In the high-interest rate environment, B2B BNPL becomes a more viable option, and consequently, firms are expected to keep raising funding rounds from venture capital and private equity firms.

• In October 2022, MarketFinance, another B2B BNPL firm, announced that the firm had raised £30 credit facility to expand its B2B offering to small merchants and businesses in the country. As of October 2022, the firm had made available £45 million to over 2,000 buyers in the United Kingdom.

As investors foresee growth and profitability in the B2B BNPL space, the sector is expected to perform well over the next three to four years, compared to the consumer-focused BNPL market in the United Kingdom.

To know more and gain a deeper understanding of the BNPL in the United Kingdom, click here.