Open banking platform forms BNPL partnership to tackle Europe’s £343bn SME finance gap

London based open banking platform Yapily has partnered with B2B Buy Now Pay Later (BNPL) start-up Two, enabling merchants to offer BNPL services to their business customers instantly at checkout.

SMEs are the “backbone of Europe’s economy”. They account for almost two thirds of European jobs and contribute approximately €3.5tn (approx. £3tn) to the European economy in 2020. Yet, as reported by Allianz, industry research estimates that a €400bn (approx. £343bn) SME finance gap still exists in Europe.

Together, Yapily and Two are seeking to ease the burden for these SMEs by offering alternative ways to access credit via BNPL and open banking. When a business chooses to pay with Two at an online checkout, using Yapily Data, Two can instantly retrieve the buyer’s account information to support its real-time ID verification checks.

This includes fetching user information such as name and date of birth, as well as transaction data to support fraud analysis. Once approved, the business customer then has the option to pay up to 90 days after the purchase is made.

E-commerce platforms offering Two at checkout can expect to see higher business customer approval rates of up to 90 per cent; an increase in average order value up to 60 per cent; and a 20 per cent uplift in sales conversion rates.

Deane Barton, head of product at Two, said: “Many SMEs across Europe are in recovery mode after spending nearly two years dealing with an unpredictable economic climate. With Yapily and open banking, we are able to provide a safer, cheaper, and easier financial bridge for businesses that are ready to move forward.

“The intersection between BNPL and open banking is an exciting place to be. Together, we are shaping the future of financial services as we know it.”

Stefano Vaccino, founder and CEO at Yapily, added: “It’s great to see yet another innovative fintech company like Two challenging the status quo to deliver greater flexibility for businesses across Europe.

“This is a brilliant example of how open banking can help cash-strapped businesses at a time when they need it most. I’m very excited for our journey together and look forward to seeing what’s next.”

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