Yapily, Two to tackle Europe's EUR 400 bln SME finance gap

Tuesday 24 May 2022 12:26 CET | News

Open Banking platform Yapily has partnered with B2B Buy Now, Pay Later (BNPL) startup 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 contributed approximately EUR 3.5 trillion to the European economy in 2020. Yet, as reported by Allianz, industry research estimates that a EUR 400 billion SME finance gap still exists in Europe. 

Together, Yapily and Two are offering alternative ways to access credit via BNPL and Open Banking.  

When a business chooses to pay with Two at 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.

As a result, SME owners no longer need to worry about waiting to make vital purchases to accelerate business growth or turning to potentially harmful short-term lending vehicles. Businesses will also benefit from an improved online buying and selling experience, giving them more time to get back to what matters most: growing their business.

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

The partnership will see Open Banking rolled out to Two customers across the UK, with more European markets to follow as the fintech continues to grow rapidly. It follows the news that Yapily has agreed to acquire Germany-based Open Banking solution provider FinAPI.

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Keywords: partnership, Yapily, Open Banking, BNPL, ecommerce
Categories: Banking & Fintech
Companies: Two, Yapily
Countries: Europe, United Kingdom
This article is part of category

Banking & Fintech




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