AWS’ Karen Mae Ching on the Availability of BNPL in B2B Ecosystems

Karen Mae Ching, Global Financial Services Partner Sales Program Lead at AWS, joined Doug Mackenzie for a conversation about Buy-Now-Pay-Later (BNPL) and it’s increasing availability in the B2B space.

“[BNPL] is not only risk-free because it gives you discipline on credit management. You can see how revolutionary Klarna have started it. Every time you innovate people have doubts, like big doubts, until you prove them wrong.”

“What I like about BNPL, and that’s why B2B institutions are coming into it as well, is there was an article that said “How can we teach retail to be thinking like a bank”. Because, this is the discipline that if you owe something in a bank, you have a schedule of payments. However, before, that schedule of payments you cannot really track it right? You cannot really impose to the customer you have to pay it, so there’s an amount of back and collections happening.”

“For every P&L, when you have losses they go directly to the bottom line of a particular financial institution. What BNPL did was we do it on the direct debit. It sends you a reminder that you have to pay, and it’s 0% within three months. You’re not spreading your risk, you’re concentrating it on a ver short period of time.”