Europe B2B Buy Now Pay Later Business and Investment Report

Dublin, April 30, 2026 (GLOBE NEWSWIRE) -- The "Europe B2B Buy Now Pay Later Business and Investment Opportunities Databook - 45+ KPIs on B2B BNPL Market Size, End-Use Sectors, Retail Product Categories, Sales Channels, Company Size - Q2 2026 Update" report has been added to ResearchAndMarkets.com's offering.

B2B BNPL payments in the region are expected to grow by 25.2% on an annual basis to reach US$80.2 billion in 2025. Europe B2B BNPL adoption continues to accelerate as businesses increasingly seek flexible payment solutions for procurement and trade transactions. The medium to long-term growth story of the B2B BNPL industry in the region remains strong. B2B BNPL payment adoption is expected to grow steadily, recording a CAGR of 16.7% during 2026-2030. The gross merchandise value is projected to increase from US$80.2 billion in 2025 to US$179.6 billion by 2030.

Europe is the world's most regulated BNPL market and, for B2B BNPL specifically, the most structurally mature outside the United States. The region's B2B BNPL market is anchored by Germany's Billie and Mondu, the UK's Kriya and Hokodo, France's Defacto, and the pan-European activity of Hokodo, with a competitive landscape characterised by well-funded specialist providers competing for B2B marketplace platform integration partnerships rather than direct-to-SME market development.

Europe's B2B BNPL market is shaped by three regulatory frameworks that are simultaneously constraining consumer BNPL and legitimising B2B BNPL as a distinct product category: the EU Consumer Credit Directive II (CCD2), whose implementation across member states is due by end-2025; the UK Financial Conduct Authority's BNPL regulatory framework, expected to enter force around mid-2026 following HM Treasury's May 2025 publication of its final regulatory position; and the EU AI Act's classification of credit scoring systems as high-risk AI applications. All three frameworks impose compliance requirements primarily on consumer BNPL while treating B2B credit differently, creating a differentiated regulatory environment that favours institutional investment in B2B BNPL relative to consumer BNPL.

Competitive Landscape and Regulatory Changes in Europe's B2B BNPL Market

Europe is the world's most mature B2B BNPL market outside the United States, with well-funded specialist providers, an advanced open banking infrastructure, and a competitive landscape characterised by multiple providers competing for B2B marketplace platform integration partnerships.

Competitive intensity is high between the established B2B BNPL specialists Billie, Mondu, Hokodo, Defacto, Kriya, and Playter and growing as consumer BNPL providers including Klarna develop B2B product extensions. Banks are accelerating digital trade credit development, with Barclays, HSBC, BNP Paribas, ING, and Rabobank all having developed or piloted digital B2B trade finance products. Pan-European expansion by established national market leaders is driving cross-border competitive pressure.

Key Players and New Entrants

Billie (Germany): Europe's best-capitalised pure-play B2B BNPL provider, Billie has expanded to the Netherlands and Sweden, making it the most internationally active European B2B BNPL provider.
Mondu (Germany): A Berlin-based B2B BNPL provider which has integrated with Metro AG and Contorion, covering wholesale food and tools distribution verticals.
Hokodo (UK/Europe): A pan-European B2B BNPL provider. Hokodo is the only B2B BNPL provider operating across six European markets, targeting logistics platforms and B2B marketplaces.
Defacto (France): The market's infrastructure-as-a-service B2B BNPL model leader.
Kriya (formerly MarketFinance, UK): The UK's most prominent domestic B2B BNPL provider, with a Tide banking platform partnership providing distribution access to a large SME customer base, and sector coverage across construction, manufacturing, and wholesale trade credit.

Recent Launches, Mergers, and Acquisitions

HM Treasury published its final BNPL regulatory position in May 2025 and laid the draft Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025, bringing consumer BNPL into FCA regulation around mid-2026 explicitly differentiating B2B credit from the new consumer BNPL framework and creating a more clearly separated operating environment for B2B BNPL providers.
Defacto's partnership with Ankorstore the wholesale marketplace connecting French brands with international boutique buyers embedded B2B BNPL for international wholesale buyers across Europe, enabling boutiques to purchase from French brands on 60-day payment terms through an API integration that required no separate Defacto customer onboarding.
Zilch raised $125 million in debt financing from Deutsche Bank in June 2024, expanding its UK BNPL offerings a signal of continued institutional appetite for BNPL credit facilities even as regulatory compliance requirements increase operating costs for consumer-focused providers.
The EU AI Act entered application for high-risk AI systems including credit scoring from August 2024, requiring European B2B BNPL providers using algorithmic underwriting to implement model documentation, explainability capabilities, and human oversight frameworks. BaFin and DNB both issued supplementary guidance on AI Act compliance.
Germany's Act on the Modernisation of the Law on Partnerships, effective 2024, simplified SME legal structures and reduced documentation required for KYB checks, accelerating B2B BNPL onboarding for German Mittelstand businesses the primary target segment for Billie and Mondu.

Competitive Landscape Outlook for the Next 2-4 Years

Consumer BNPL regulatory compliance requirements CCD2 by end-2025 in the EU and FCA authorisation by mid-2026 in the UK will redirect some institutional capital from consumer to B2B BNPL, which offers comparable market size with lower regulatory risk. This capital reallocation will accelerate B2B BNPL development across the region.
Market consolidation among European B2B BNPL providers is expected over the next 2-4 years, with Billie and Hokodo most likely to emerge as pan-European leaders. Smaller national market providers without platform integration scale will face acquisition pressure from better-capitalised competitors or from European banks seeking digital trade credit technology.
Bank-fintech partnerships will become the dominant operating model, with European clearing banks providing low-cost wholesale capital and regulatory standing while fintech B2B BNPL providers contribute technology, underwriting algorithms, and B2B marketplace distribution. This hybrid model is expected to dominate the mid-market segment.
PSD3 implementation expected to update open banking standards across the EU will improve underwriting data quality in previously underserved southern and eastern EU member states, creating the data foundation for B2B BNPL market development in Spain, Italy, Portugal, and Poland.

Regulatory Changes Implemented in the Last 12-18 Months

The EU Consumer Credit Directive II (CCD2), which EU member states must implement by end-2025 with the framework entering force in 2026, eliminates the existing exemption for third-party BNPL products, requiring full credit assessment and regulated disclosure for consumer BNPL. B2B credit is explicitly excluded, creating a differentiated regulatory environment that favours B2B BNPL development.
HM Treasury published its final BNPL regulatory position in May 2025 and laid the draft Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025, confirming that consumer deferred payment credit will enter FCA regulation around mid-2026. The framework applies to third-party consumer BNPL lenders, with B2B credit treated distinctly.
The EU AI Act, applying to high-risk AI systems including credit scoring from August 2024, requires European B2B BNPL providers using algorithmic underwriting to document model governance, provide explainability for automated decisions, and maintain human oversight capabilities. BaFin, DNB, and the FCA have all issued supplementary guidance.

A Bundled Offering, Combining the Following 15 Reports, Covering 440 Tables and 490 Figures

Europe B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Austria B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Belgium B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Denmark B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Finland B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
France B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Germany B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Italy B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Netherlands B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Norway B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Poland B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Spain B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Sweden B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
Switzerland B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
United Kingdom B2B Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook

For more information about this report visit https://www.researchandmarkets.com/r/eby77u

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