BNPL provider Hokodo has integrated a new plug-in feature to ecommerce platform Shopify to offer instant credit terms to customers.
The new plug-in will enable B2B merchants on the Shopify platform to be able to offer instant credit terms to their trade buyers and get paid upfront, all whilst reducing the risk of non-payment and fraud.
Described as “the first of its kind”, the integration positions Hokodo as a viable option for Shopify B2B merchants who are seeking the ability to defer payments up to a 60 day timeframe.
“Our new Shopify integration has been designed with the merchant experience in mind, and can be installed in just a few steps with no development work required,” commented Sami Ben Hatit, Hokodo Co-Founder and CTO.
“This will be welcome news to SME merchants who don’t have the technology resources to spare for a several weeks long integration.”
The plug-in works through the Shopify merchant installing it to make credit terms available to their business customers, allowing the customer to visit the ecommerce platform of the merchant where they can be offered to choose the ‘pay later’ payment method.
The real-time API Hokodo applies checks the eligibility of the customer’s credit score and their fraud risk at the point-of-sale.
The customer can pay Hokodo back in line with their payment terms as the merchant receives an upfront payment once the delivery of the purchase is confirmed.
Louis Carbonnier, Hokodo Co-Founder and Co-CEO, recently wrote for Payment Expert on the changing landscape of B2B payments and the added value BNPL credit can contribute towards B2B sales.
“In 2022, credit terms are not only a desirable added-value service for B2B payments, they are a necessity – particularly during periods of economic downturn when growth might otherwise stagnate.
“However, right now, there are still very few credit solutions available for online B2B sales. According to recent research, only about three-quarters of B2B marketplaces offer payment through their platforms and of those that do, only 21% offer a BNPL option.”
Hokodo states that its payment solution has seen an 40% increase in conversion rates and a 30% rise in basket sizes. Business customers have also benefited as the BNPL provider states that its plug-in has promoted “healthier cash flow for both parties”.
The Hokodo plug-in is available to Shopify merchants in the UK, France, Spain, Belgium and the Netherlands.
