Tabit and B2B Buy Now, Pay Later - The Future for Millennials and Gen Z

Millennial and Gen Z consumers have adopted the Buy Now, Pay Later mindset. Not surprisingly, as the two groups become larger segments of the workforce, they carry this mind set into the B2B environment. Tabit is positioned to encourage this evolution. It bridges the gap in the Canadian Buy Now, Pay Later (BNPL) market by offering a B2B solution that helps buyers and sellers. Tabit is the future of financing services.

How Does B2B Buy Now, Pay Later Relate to Millennials and Gen Z?

Millennials are the largest demographic in the workforce. When grouped with Gen Z, this combined demographic represents approximately 46% of the American workforce. As Baby Boomers and Gen X exit the workforce, Millennials and Gen Z will become the majority of working adults.

When it comes to entrepreneurial spirit, millennials and Gen Z are a product of their prior experience. This demographic witnessed their parent’s struggle through a recession. Additionally, millennials and Gen Z have experienced dramatic changes in the work environment brought about by the pandemic. This has resulted in an overarching desire for control and independence when it comes to financial decision making.

Following the path carved by millennials, Gen Z embraces the inherent value and evolving opportunities of e-commerce. This group is technology savvy and becoming a business owner provides financial independence and control. It offers relief from the limited options that preceding generations faced. At the intersection of e-commerce and alternative financing, Gen Z will drive the future of B2B transactions.

As the Gen Z demographic grows in the business environment, attention must be paid to expectations. The flexibility they have experienced with consumer Buy Now, Pay Later services is now transitioning and growing on the commercial side. B2B BNPL is becoming an expectation rather than a luxury for all financial transactions whether personal or for business.

Improving the Existing Model to Meet Expectations

The integration and normalization of technology has influenced expectations of immediacy. While process improvement is a norm for millennials and Gen Z, the expectation of immediate results has also become a norm. A Buy Now, Pay Later for B2B is all about process optimization and the generation of rapid results.

In the consumer environment, it is estimated that the value of the BNPL market in Canada will reach US$ 17615.1 million by 2028. Given the significantly higher monetary value in the B2B e-commerce market (average order cost and frequency of purchase) this is a strong indicator of the current and future potential for the B2B BNPL market. With the growth that Buy Now, Pay Later has seen on the consumer side, it’s growth in the B2B sector is inevitable.

Existing models in businesses that offer credit terms to customers require added labor costs for credit approval and receivables management. The process is completely at odds with the desire for immediacy held by millennials and Gen Z. However, with a B2B Buy Now, Pay Later solution, this process is optimized.  The buyer receives immediate approval to proceed with their purchase while still having the flexibility to pay it off over time.

The Future of B2B Buy Now, Pay Later Is Already Here

Integrating tabit into your business is not about offering a novel short-term solution. It is about your business being proactive and planning ahead. It is about future-proofing payment options to continue to meet demand. As either a buyer or a seller, millennials and Gen Z have clear expectations when it comes to ease, functionality, and control. They want a convenient solution that provides flexibility and choice. Tabit meets that criteria.