How can B2B e-commerce platforms develop their sales quickly, without exposing themselves to the risk of non-payment? Interview with Mickael De Sa, Director of Digital Acceleration at Allianz Trade in France.
What are the challenges of B2B e-commerce today?
The B2B e-commerce market is booming: while it represented only 18% in 2015, the share of online purchases in B2B sales in France represented 24% in 2020 and is expected to reach 33% in 2025.. However, despite this rapid growth, the payment experience offered to businesses purchasing goods on e-commerce sites is far from ideal and often remains cumbersome and uncomfortable. For example, there is a real discrepancy with B2C e-commerce platforms, which offer consumers staggered, deferred or installment payments. The challenge for B2B marketplaces and online sales sites will be to duplicate this model, known as Buy Now and Pay Later, to optimize their buying process and ultimately develop their sales and revenue more quickly.
Mickael De Sa, Director of Digital Acceleration at Allianz Trade in France
What is the interest of Buy Now Pay Later for B2B e-commerce platforms?
Payment is the critical point of any online shopping journey. Being able to offer a payment term to a buyer is a differentiating element, which will allow both attracting new customers and retaining existing customers. It’s also a great way to increase your average shopping cart value, as deferred or installment payments allow the shopper to stagger the impact of their purchase on their cash flow. However, offering such a means of payment must not be at the expense of the customer experience: it must be integrated in a fluid, simple and instantaneous way so as not to affect the user experience. Likewise, proposing a payment term means exposing yourself to the risk of non-payment. And it would be counterproductive to increase sales without securing additional revenue. Ultimately, this is what BNPL is all about for e-commerce sites: optimizing the buying process to stimulate your activity while preserving your cash flow from any unpaid bills.
How to answer this question?
At Allianz Trade, as a world leader in credit insurance, we have extensive knowledge of commercial transactions and are constantly adapting our services to changes on B2B exchanges. We have therefore developed a simple, instant and innovative solution, in the form of an API, which allows e-commerce websites and marketplaces to offer payment terms to their customers without exposing them to the risk of default. The mechanism is simple: (i) the B2B e-commerce site receives an order from a buyer; (ii) the financial health of this buyer is analyzed in real time by Allianz Trade’s information systems, which contain financial, strategic and commercial information from more than 80 million companies worldwide; (iii) proven the solvency of the buyer, the latter is offered a deferred payment, in installments or staggered; (iv) if the buyer accepts, the e-commerce site will be covered by Allianz Trade in the event of any non-payment by the buyer. Thanks to this mechanism, e-commerce sites can now offer their customers a fast and optimized payment experience, with an additional service with high added value that allows them to differentiate themselves from the competition. Everything happens in a split second, without the end user noticing. A good way to increase your online sales while preserving your money!
How does your API work?
It is a JSON-based REST API that uses the OAuth2 authentication protocol to establish the link between an e-commerce website and Allianz Trade. Encrypted information and authentication, during the exchanges made in TLS (Transport Secure Layer), make the information inviolable. Something to reassure companies and their customers. This API operation makes it possible to connect and exchange data between the B2B E-Commerce website and Allianz Trade in real time, 24 hours a day, 7 days a week and in an automated way.
 Source: Statist