BNPL Gets the Headlines but Pay by Invoice is the Real Business Payments Pioneer

Buy Now Pay Later (BNPL) companies have positively improved the B2C experience by offering installment payments, flexibility and more choice. It makes online shopping more convenient and leads to more sales, which is great for both consumers and sellers. BNPL is clearly a big deal. Look at Klarna. After a highly publicized IPO in September, its valuation dropped 20% from its initial high. Despite the dip, the IPO underscores the market’s interest in BNPL. These companies build valuable awareness about paying on terms as they increasingly become available as a payment option. 

You’ve likely encountered prominent BNPL players like Klarna, Affirm or PayPal while checking out online and you can even use BNPL in physical stores. Shoppers still enjoy instant access to products. Being able to pay over time can take the sting out of the expense.  

It’s no surprise BNPL is the talk of the town. But it’s not all positive. On the consumer side, the news focuses on the backlash that comes with rising consumer credit losses, the lack of clear standards for reporting to credit bureaus and concerns about overspending and debt. And while more BNPL fintechs look to target business buyers, they have to consider if and how they can scale to meet the more complex needs of B2B commerce.  

BNPL shares some traits with B2B payment options, but it’s geared more towards consumers and business buyers making smaller purchases. Allowing buyers to pay 30 days later on a single purchase for a few hundred dollars isn’t the same as offering buyers a line of credit with limits into the tens of millions. Plus, BNPL fintechs are often regional, not global, and usually don’t contain the accounting and reporting tools that big businesses need to sell internationally. BNPL isn’t really what is needed to help business run smoothly. 

The Promise of BNPL Is To Reduce Payments Friction … but That’s Only Part of the Story

While BNPL started its rise in popularity around 2015, Pay By Invoice (PBI) has been used for decades to meet the flexible financing needs of larger businesses, which are more complex, involve multiple parties and operate across geographic regions and currencies with a host of regulations. Bigger businesses that serve enterprise-to-enterprise need to incorporate key elements of A/R automation, offering distinct benefits for both business sellers and buyers. These “quiet disrupters” that offer PBI tend to operate behind the scenes, unlike the more well-known BNPL companies. BNPL is the lightweight version of installment financing. PBI is the original for business payments. 

Sectors like manufacturing and travel have been on the Pay by Invoice train for decades. And now retailers are increasingly seeing the value as it drives their growth plans as they look to serve the lucrative business buyer.  

With 40-plus years of B2B relationships, TreviPay’s distinct advantage points to two fundamental qualities for success: 

Integrating automation presents a notable opportunity. Many manual B2B processes still exist, particularly within the Order-to-Cash (O2C), creating costly inefficiencies. By strategically implementing automation, in addition to fostering loyalty and trust, sellers and merchants can improve the buyer experience and also lessen operational costs to accelerate their time to market.

BNPL vs PBI Services

Global B2B payments and invoicing opportunity is massive, yet it requires more resources and technology than what BNPL fintechs are able to offer today. 

Here’s a practical comparison of BNPL Fintechs and PBI Services:

BNPL Fintechs	PBI Services
Regional presence with some expansion and varying features across a handful of international markets	Global presence in dozens of international markets
Experience with smaller, niche brands, SMB and eCommerce	Experience with numerous purpose-built enterprise buyer features
Statements delivered via email and SMS	Detailed invoices delivered to the buyer’s ERP
Credit lines for smaller purchases of a few hundred to low-5-figures	Credit lines for large purchases up to $20M+
eCommerce only	Omnichannel selling
Support direct sales models	Support for direct and third-party sales models
Billed to credit cards	Paid via direct debit, check or ACH

A PBI solution also improves cash flow, involves faster onboarding and allows businesses to allocate funds more strategically. It manages larger, more complex transactions globally and includes buyer transaction fees, distinguishing it from the high-volume, small-transaction B2C model.

Complexity Masks Opportunity and Value

In “Finding Hidden Value with Order-to-Cash Optimization,” McKinsey & Company explores how complexity within O2C processes can obscure significant operational inefficiencies and untapped value. Many organizations rely on traditional KPIs that fail to capture the full scope of issues like rework, errors and delays. As a result, companies may be unknowingly losing 3–5% of EBITDA through value leakage. Digitizing order management, improving data accuracy and streamlining credit checks are key strategies that not only reduce costs but also enhance the customer experience. O2C is a business process performed by sellers while PBI transforms what sellers are able to offer their buyers. When envisioned as one, it becomes a strategic lever for profitability and growth. 

There are proven places where automation can drive new efficiencies while encompassing credit underwriting, invoicing and collections. And, we ensure suppliers receive payment swiftly, often within a couple of days, instead of waiting 30, 45 or even 60 days. 

To make this complex process work at scale, this is where automation shines. Manual steps like invoicing, payment matching and reconciliation slow the entire process. By automating the invoicing and settlement process, you gain perfect DSO and cash application. Friction is reduced and efficiency is boosted. The payment process becomes a strategic advantage to enhance long-standing buyer-seller loyalty rather than a back-office burden. 

Seamless B2B payment solutions take a deep understanding of credit and risk management, the complexity of global trade, e-invoicing with integrations to A/P, A/R and other financial systems and the ability to deliver a frictionless experience that meets the expectations of today’s business buyers.

Summary

BPNL gets the headlines as the consumer payment method of choice. But we know consumer-focused providers like Klarna or Affirm aren’t equipped to easily take on all the complexities of B2B payments. 

Pay by Invoice provides the flexibility and financing that support businesses at scale. 

Recall the table from earlier in this article, PBI is more than a payment method – it is a valuable piece of A/R automation and a full order-to-cash solution to streamline credit management, invoicing and receivables processes making PBI the enterprise flavor of BNPL for businesses.