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iwoca-QuickBooks integration offers buy-now pay-later checkout option

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A new integration between fintech provider iwoca and cloud accounting platform QuickBooks gives businesses the option to offer a buy-now pay-later service to their business customers.

13th Feb 2023
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Using iwoca’s payment solution iwocaPay, the integration allows users to offer their business customers ‘Pay Now’ or ‘Pay Later’ options via QuickBooks invoices.

Businesses can add iwocaPay as an invoice payment method to their Quickbooks invoices by signing up to iwocaPay and integrating it from their iwocaPay dashboard. Sellers then include a unique PayLink in their invoice offering customers the option to pay now or later.

Buyers that choose the Pay Later option can spread the payment terms up to 90 days, with one month interest-free. 

How to access the service

iwocaPay’s site states that the Pay Now function is free for suppliers and customers, while the fintech charges for its Pay Later service on a use basis with no subscription fees. Suppliers control who pays for Pay Later, with either a fixed 3% on each Pay Later transaction for the supplier (and interest-free for the customer) or free for the business and interest-bearing for the customer. iwoca then handles customers’ future repayments and takes on the credit risk.

According to iwoca’s website, it takes a customer around five minutes to apply for the service and they received a decision instantly, while suppliers are paid immediately regardless of whether customers choose to settle straight away or spread the payments.

iwoca does not run credit checks for customers using Pay Now, but business customers using Buy Now Pay Later will be subject to a ‘soft’ check which means applying won’t affect their credit score.

iwocaPay is available to all limited companies and sole traders in the UK for invoices between £150 and £15,000.

Another partnership for iwoca

The QuickBooks integration follows a similar partnership with fellow cloud accounting player Xero, which was first launched in February 2021.

iwocaPay has built the extension using its new API, which the fintech firm claims makes it the only UK-based business-to-business buy-now-pay-later (BNPL) provider that’s fully omnichannel – ie has the ability to integrate with invoices, e-commerce checkouts and anywhere businesses take payments. 

Lara Gilman, co-lead of iwocaPay said: “We’re delighted that QuickBooks users now have the option to include iwocaPay on their invoices, so they can offer business customers buy now, pay later, without carrying the credit or late payment risk themselves. 

“The ability for them to offer this flexibility to customers during today’s turbulent economic times will help B2B businesses attract more customers and make more money, whilst having better control of their own cashflow.”

Buy-now-pay-later

BNPL is a variety of credit that allows customers to buy products by borrowing against their future income. The solution has become popular with consumers through services such as Klarna and Zilch as banks raise credit card interest rates in line with the Bank of England. 

In a similar way to credit cards, however, there is a risk consumers can land themselves in further debt if they fail to pay back what they owe to BNPL providers.

Recent research by Adobe Analytics found that nearly £1 in every £8 spent online in January 2023 was sourced from a buy-now-pay-later provider.
Last year, research from PayPal in the business payments arena showed that offering Pay Later options significantly improves conversion rate, with 57% of consumers being more likely to make a purchase at a retailer offering interest-free payment options.

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By Hugo Fair
14th Feb 2023 12:06

There's more than a certain irony in this being published hot on the heels of last week's https://www.accountingweb.co.uk/business/finance-strategy/government-pro...

So are businesses more interested in getting paid quickly or in extending their 'pay later' options?

Historically the arena of 'buy now pay later' was known as buying on the never-never, which at least had the benefit of saying what it was 'on the tin' (if you didn't keep up the payments and the land of accelerating usury came into play).

Providers of such services have invariably ended up with a bad reputation ... and badging it as a piece of technology doesn't change the leopard's spots.

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