Tabit Launches Canada’s First B2B BNPL POS Service

Tabit, a Canadian company billing itself as the country’s first point-of-sale buy now, pay later (BNPL) offering for the B2B space, began operations Wednesday (Feb. 23).

The Vancouver firm says it works with small businesses to give them payment options by integrating a card offering at point of sale, powered by the Canadian small business financier Merchant Growth.

“Bank loans for small businesses are notoriously hard to get,” Tabit founder and CEO David Gens said in a news release. “It is also very difficult for many small businesses to obtain credit from their suppliers. Tabit was created to fix that.”

Gens, who also founded Merchant Growth, said newer generations of small businesses owners are increasingly valuing BNPL solutions and their ability to boost their purchasing power without needing up-front capital.

The company points to a recent survey it conducted with Angus Reid Surveys showing more than half of Canadian small business owners (53%) would consider a financing solution at checkout that let them make payments over time.

They survey also found young business owners — those between 18 and 34 – are twice as likely as their older counterparts to say they’d “definitely” consider BNPL. Business owners with 10 or more employees were also more likely to consider BNPL.

And about a third of business owners say the solution would make them more likely to make larger purchases. Among younger business owners, that figure rises to 42%, 44% for businesses with 10 or more workers.

Learn more: BNPL: Better For Businesses Than Corporate Cards

PYMNTS looked at some of the factors steering small businesses to BNPL earlier this month in a conversation with KEO World Founder and CEO Paolo Fidanza.

With BNPL, businesses that need to purchase inventory can obtain a fast approval so that it can finance the inventory, take possession of it right away and pay later.

“The big benefit in the business, more than in the consumer space, is that normally these businesses can take this inventory, sell it or make it to work to produce money before they need to pay for it,” Fidanza said.