Koverly Launches B2B BNPL Platform for International Trade

Koverly has unveiled its B2B buy now, pay later (BNPL) platform, offering businesses enhanced payment flexibility and reduced foreign exchange (FX) rates.

The standout feature of the new KoverlyPay is the introduction of a 30-day extension on FX payments at no cost to either the buyer or seller, the global FinTech startup said in a Tuesday (Aug. 22) press release.

KoverlyPay enables businesses to extend their payments over four, eight or 12 fixed weekly installments, according to the release. This flexibility empowers companies to effectively manage their cash flow and improve profitability. By deferring FX payments for 30 days, businesses can unlock additional working capital, leading to increased inventory turnover and a potential annual profitability boost of 50% to 100%, per an estimate from Igor Ostrovsky, CEO of Koverly.

Since its inception in 2021, Koverly has secured $7.6 million in seed funding that has allowed the company to develop a payment platform that combines foreign currency and B2B cash flow management, tailored specifically for international business trade, including importing, the release said. The company aims to originate $70 million in new loans over the next year.

Koverly’s platform has experienced considerable traction in the market, processing an annualized volume of $200 million for both domestic and international payments, per the release. Since introducing global payment capabilities in July 2022, these transactions now account for 50% of Koverly’s volume.

Aside from payment flexibility, Koverly offers reduced foreign exchange rates of up to 50% and eliminates wire transfer fees, potentially saving businesses up to $40 per transaction, according to the press release.

When businesses opt for KoverlyPay at checkout, funds are transferred to the recipient within one to three business days, the release said. Koverly also provides transparent, fixed repayment options.

PYMNTS research has found that BNPL solutions can help level the playing field when it comes to B2B payments, applying the same principles to the corporate sector that made it so popular for consumer transactions.

With their lack of interest payments, BNPL solutions enable businesses to make B2B purchases much more cheaply, acquire more inventory and afford more premium goods and services from their suppliers, according to “Is BNPL the Next Driver for B2B Growth?”, a PYMNTS and Splitit collaboration.