Buy Now, Pay Later for Business: A New Financing Option from Alibaba and Slope

Buy now, pay later (BNPL) has proven successful in consumer markets, but can it also be beneficial for business payments? Alibaba is optimistic about its potential, partnering with Slope to introduce “Pay Later for Business,” an embedded financing solution designed to enable U.S. businesses to manage their payments in a manner similar to retail checkout processes.

The service allows qualified business buyers to apply for installment terms on purchases. Behind the scenes, Slope uses artificial intelligence to provide lending, underwriting, and collections infrastructure, helping assess credit and manage risk for B2B platforms.

Expansion into U.S. Markets

The partnership with Alibaba signals a move toward broader acceptance of BNPL in the business sector, according to Slope’s expectations of announcing additional collaborations later this year.

Despite having over 130 million users worldwide, fewer than 10 million are based in the United States. To drive growth, Alibaba has focused on smaller mom-and-pop businesses within U.S. markets.

The Potential of Embedded Payments

There is a strong demand for B2B financing solutions that go beyond traditional card payments. After the 2008 financial crisis, banks largely shifted their small business lending to card-based products. Since then, fintechs have shown that many business financing needs cannot be fully met through cards alone, opening up opportunities for more flexible payment options.

“Embedded finance involves presenting the product at the right time in a buyer’s journey to achieve the highest acceptance rates,” said Don Apgar, Director of Javelin’s Merchant Payments Practice. He added that BNPL products on the checkout page offer little value to merchants because the consumer has already decided to make a purchase.

“This is where Slope’s partnership with Alibaba shines,” he explained. “It exemplifies how fintechs are leveraging embedded finance to provide consumers with flexible payment options during their decision-making process.”