What is PastPay?
PastPay is a regulated financial service provider offering deferred payment terms through factoring, more commonly known as “Buy Now Pay Later” for B2B merchants in EU countries.
What is B2B BNPL?
B2B Buy Now Pay Later is a form of financing frequently used in business-to-business transactions. It allows corporate buyers to pay 15-90 days later for their purchase, while the merchant immediately receives the order amount at the time of the fulfillment of the order. This option allows buyers to manage their cash flow flexibly while enabling merchants to receive the payment almost instantly – upon completion.
How does B2B BNPL work?
In the checkout process, customers have the opportunity to pay later (within 15-90 days) using PastPay. After selecting the BNPL (Buy Now, Pay Later) option, our proprietary algorithm analyzes the buyer within seconds and provides feedback on their eligibility for deferred payment. Once the customer has received the ordered goods, PastPay processes the payment by transferring the purchase price to the seller after deducting the PastPay service fee, ensuring a smooth payment process for both parties.
In which countries is PastPay available?
PastPay’s system supports businesses in all European Union countries and the service is available EU-wide. However, it is primarily present in Hungary, the Czech Republic, Germany, Poland, Romania, and Slovakia at the moment.
Who is PastPay for, and what conditions does my webshop need to meet?
Webshops that meet the following criteria will benefit the most from using PastPay BNPL:
- customers are other businesses (operating in B2B)
- have business buyers with a need for flexible payment terms
- have business buyers that are frequently late with their payments;
- want to minimize administrative workload and reduce risks of non-payment
- want to maintain or improve their financial liquidity
Can PastPay be a good choice if I sell lower-priced products?
Indeed, there is no minimum limit when using PastPay. Your business customers can use PastPay’s Buy Now Pay Later option for any purchase amount within their limits.
What benefits does PastPay offer me as a merchant?
PastPay BNPL has several benefits for merchants:
- increasing average cart value;
- improving conversion rates;
- receiving revenues on time;
- reducing administrative tasks;
- reducing or even eliminating non-payment risk;
- increasing liquidity;
- improving cash flow;
- providing outstanding customer experience for buyers;
- increasing customer loyalty and purchasing willingness.
My business clients make small purchases. Can PastPay help increase the value of business purchases?
Yes, with PastPay Buy Now Pay Later, you can increase basket value by up to 60%. Paying later boosts the willingness to pay and motivates the buyer to place bigger purchases. BNPL also allows the buyer to generate profit on the purchased products before settling the payment, creating growth opportunities on both sides.
As a webshop, how much do I need to pay for PastPay?
PastPay will charge the merchant a pre-determined percentage on each PastPay transaction. The rate depends on several factors (B2B turnover, customer composition, willingness to bear non-payment risk, etc.) and will be defined in the contract between your business and PastPay.
Do I bear any risk?
There is an opportunity for the merchant to outsource the entire non-payment risk with the introduction of our service. In this case, once we approve the purchase of your corporate buyer, all responsibility can be taken over by PastPay. It will be discussed during the contract negotiation process.
Is there a minimum purchase amount for the buyer when using PastPay?
There is no minimum purchase amount when using PastPay.
What is the maximum purchasing amount that my customer can pay using PastPay?
After analyzing the buyer, our system determines a maximum limit for the PastPay Buy Now Pay Later payment method. If the purchase amount exceeds the limit, PastPay won’t be available to finance the buyer.
What payment terms can I offer to my buyers with PastPay BNPL?
PastPay allows your corporate customers to pay later for their purchases while you receive immediate payment for the order upon fulfillment. With PastPay BNPL, you can offer your corporate customers a payment deadline of 15-90 days. The precise payment deadline will be determined in the contract between your business and PastPay.
How are invoices managed?
Invoice management can be either semi-manual or fully automated depending on the level of integration.
What is required to receive the payment after my customer purchases with PastPay?
Upon order fulfillment of a purchase paid with PastPay BNPL, your company will send the invoice to PastPay (either automatically or semi-manually), and the payment will be issued based on the invoice.
Do I need to issue an invoice for purchases paid with PastPay?
Yes, the merchant needs to issue the invoice for the purchase, just as with any other payment option. Technically, the merchant ‘sells’ the invoice to PastPay. The merchant will then send the invoice to PastPay (either automatically or semi-manually, depending on the level of integration), and payment will be initiated based on the invoice.
What is the PastPay Portal?
PastPay Portal is a platform where merchants can manage any part of their BNPL process, such as orders, invoices, deliveries, customers, buyer limits, and more. The Portal can also be used to manage the BNPL process if the merchants cannot integrate the API fully or the purchase happens outside of a webshop.
What is the PastPay App?
The PastPay App is a platform for corporate buyers who pay with PastPay, where they can view their PastPay purchase history and ongoing payments in one place.
Can I still use PastPay even if I have B2B customers who make purchases outside of the webshop (via phone/ e-mail) or if I don’t have webshop at all?
Yes, you can also offer B2B BNPL to your offline buyers by using the PastPay Portal. If you don’t have a webshop, you can still request a quote on the https://pastpay.com/contact-us/ page, just enter ‘no’ in the field of ‘webshop domain name’.
At which point does PastPay pay the merchant or the webshop?
Once the order is fulfilled and the invoice is issued, PastPay will pay the invoice within 24 hours.
How do you evaluate whether my customer is allowed to you PastPay?
Suppose the legal and financial situation of the company is adequate and has at least 2 completed financial years. In that case, we will positively evaluate the customer’s company and enable the PastPay BNPL payment option.
What information do you need from my customers during the evaluation process?
When a business customer pays with PastPay, we need the following information:
- tax number of the company,
- total amount of the purchase,
- contact info.
Furthermore, during the first purchase, the corporate buyer will need to go through a brief, automated process for customer identification, which they can easily complete on their own within a few minutes.
Does my customer have to pay for using PastPay’s service?
The customer doesn’t have to pay for using the PastPay BNPL payment method; it is free of charge for them as long as the invoice is settled within the payment deadline. In case of payment beyond the deadline, statutory default interest and collection flat rate will be applied.
How will my customer be informed about payment details once the extended payment deadline is due?
When the customer selects PastPay as a payment method at checkout, the system automatically updates the invoice with the new payment details. We will also email the customer the necessary information and steps upon purchase.
What if my customer doesn’t pay?
PastPay is responsible for collecting the amount of the purchase from the customer. Once PastPay approves the given purchase, generally, all responsibility and risk belongs to PastPay. In other words, the merchant can outsource the risk of non-payment by introducing our service. PastPay BNPL will become unavailable for the buyer after the payment expires and will become available again once the buyer settles the amount.
What happens if my customer accidentally pays a more than the purchase amount?
If the customer accidentally transfers a higher amount, it is common for them to contact the merchant. We will consult with the merchant whether we refund the amount directly to the buyer or to the merchant.
What happens if my customer hasn’t yet paid for their purchase with PastPay, but they would like to make a new purchase with BNPL?
Each business customer is assigned a limit by PastPay, which can be utilized for multiple purchases. As long as the total purchase amount is within the limit, the customer can make several purchases using PastPay.
Is PastPay available for orders placed by individuals (B2C)?
No, PastPay can only be used in B2B (business-to-business) commerce.
I have both B2C and B2B clients. Can I still use PastPay?
Yes, in this case, the PastPay BNPL payment option will only be available for business customers.
How can I integrate PastPay into my webshop?
You can offer PastPay to your corporate clients through four methods.
Firstly, you can start offering the BNPL payment option within 48 hours without integration, thanks to PastPay’s innovative platform.
To integrate PastPay, you have the following two options to display BNPL in the payment options:
We provide plug-and-play extensions for WooCommerce, Magento, Shoprenter, and PrestaShop webshop engines. (More integrations are on the way.)
If you use a different webshop engine, please inquire about your personalized options by filling out this form. Furthermore, you can integrate PastPay through the API if you have a custom webshop or use a webshop engine for which no plug-and-play extension is available.
If full API integration is not possible – e.g., invoicing happens outside of the webshop) or you are an offline merchant – you can still offer BNPL to your customers through the easy-to-use PastPay Portal.
What are the initial steps required to integrate PastPay into my webshop?
Once you’ve registered, PastPay will contact you to discuss the details and provide a personalized offer. After accepting the offer, you can sign the contract online, and the integration process can start immediately. Launching without integration means your business customers can start buying with PastPay BNPL payment after signing the contract.
How long does it take to fully introduce PastPay?
With the easy-to-use PastPay Portal, you can start offering BNPL service to your customers right after the contract is signed. With plug-and-play solution, the integration process takes less than 1 working day, while custom development may require only a few days for integration. Our IT team is ready to support you during the integration process.
What are the benefits of using PastPay as a buyer?
Shortly: You can pay your expenses from your revenue.
Using the PastPay payment method enables you to extend the payment deadline of your purchases up to 90 days. As a result, buy now pay later improves cash flow, increases liquidity, and enables more flexible terms, allowing you to potentially use your capital more efficiently elsewhere.
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