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A Comprehensive Guide to BNPL App Development like Klarna or Tabby

636 Views | 9 min | Published On: November 7, 2023 Last Updated: December 27, 2023

Fintech companies are evolving continuously to meet the changing needs of consumers in this digital era. One of the latest trends includes Buy Now and Pay Later (BNPL), which has emerged as a hot subject among customers and businesses. 

Why, you may ask? – Because of three mantras – BNPL is Fast, Convenient, and Affordable! That’s exactly what consumers expect from their service providers. And for Fintech businesses, it is a sure way to generate profits and expand their user base. 

Let’s check what the data states –

According to statistics, the BNPL market was valued at $87.2 billion in 2020. This reached an estimated $179.5 billion in 2022. By 2025, this figure is predicted to almost triple to $531.53 billion.

BNPL Market Stats

If you want to be among the top players in the Fintech market– you must comprehend the intricacies of the Buy Now and Pay Later development process. So, buckle up, and let’s get started!

Buy Now and Pay Later (BNPL): An Overview

Buy Now and Pay Later (BNPL) is a short-term financing option where customers can buy items or services and pay later without fees or interest. These types of loans are also called Point-of-Sales (POS) installment loans. 

Buy Now and Pay Later Overview

In simple words, customers who cannot afford to pay the total amount upfront – they can purchase goods from a particular merchant with the pay later option. Here customers need to make the payment in installments without interest for a specified period. 

All in all:

  • Firstly, customers can simply buy products that they cannot afford with an upfront payment. 
  • Secondly, merchants can sell their products to a huge number of customers. 
  • Thirdly, BNPL app providers can generate revenue from both customers and retailers. 

Ultimately, BNPL is a win-win situation for customers, retailers, and BNPL app providers.

Also Read: Top 5 Fintech Apps in the Middle East and How to Build Your Own!


5 Interesting Facts About Buy Now and Pay Later

Check the following image to know the most interesting facts about buy now and pay later (BNPL):

Interesting facts of BNPL

How Does BNPL Differ from Traditional Credit Cards?

Check the following table to understand how BNPL differs from traditional credit cards:

Factor BNPL Credit Card
Concept Customers can purchase goods and can make the payment later in installments without any interest Revolving line of credit where users can purchase goods and make payments on a monthly installment basis
Eligibility Criteria Easy loan approval is often based on soft loans Eligibility varies on providers and card types
Interest Rates Offer interest-free EMIs for a specified period If the total amount is not paid within the specified time, then it may involve interest on unpaid amounts
Credit Check Customers with limited or no credit history can easily get approval for loans. Not require any traditional credit check Credit card issuers usually apply credit checks to access the user’s creditworthiness before approval
Joining Fees Generally no joining fees Fees may vary and could also include annual fees
Easy EMIs Provide flexible repayment plans with zero interest Purchases are converted into EMIs with interest charges
Repayment Flexibility Transactions in BNPL are considered as separate installment plans to manage budget and manage payment for purchases Offer flexibility to customers to choose due minimum amount or full balance per month

3 Reasons Why You Should Invest in the BNPL App Development

Following, we’ve listed some crucial reasons why you should invest in the Buy Now and Pay Later apps. Let’s check:

1. Fintech is a Booming Market:

According to the latest research, the global FinTech market is expected to reach a value of USD 16,652,680 million by 2028, with a remarkable compound annual growth rate (CAGR) of 13.9% during the forecast period. 

Evidently, the fintech market is booming, driven by several factors. These factors include advancements in financial technology, financial inclusion, Blockchain, AI, and so on. 

Thus, it’s the perfect time to invest in the Fintech mobile app development services to grow your BNPL business. 

2. Huge Increase in Online Shopping

Following the pandemic, there has been a significant increase in online purchasing in the e-commerce sector. 

In 2022, there were 268 million online shoppers in the United States. This number is projected to increase to almost 285 million online shoppers in 2025.

It is clear that your customers are online shoppers, and to target them  – you must build a BNPL app like Klarna. 

3. Attractive to Users Due to Interest-Free Loans

Buyers find the BNPL appealing. Customers who use BNPL benefit from a number of options, including the ability to pay payments in installments over time, avoid interest and fees, and make purchases without having to pay the full amount at once.


The Mechanics of Developing a BNPL Solution

Buy Now, Pay Later (BNPL) services already exist in the financial market. However, it gained traction during the COVID-19 pandemic. Especially after people inclined more towards e-commerce or online shopping with a flexible payment option. 

It is essential to investigate the mechanics underlying these services in order to comprehend BNPL evolution.

Technical Infrastructure for BNPL App Development

A robust technology infrastructure is required for BNPL app development to function effectively. Key components of this include

#1 Choosing App Platform

To develop a BNPL app, it is important to choose the platform first – it could be iOS, Android, or cross-platform. The first two (iOS and Android) consume more time and money. On the other hand, cross-platform is more cost-effective and consumes less time. 

Check the following details regarding platforms and choose the one that suits your vision:

iOS Platform for BNPL App

Here we've listed when to choose the iOS platform for your BNPL app development:

  • It is more expensive than Android due to its stringent design and programming languages
  • If planning to target customers who prefer Apple products – iOS is the best option
  • If revenue models include subscription fees or in-app purchases, then the iOS user base would be best to go

Android Platform for BNPL App

Here we've listed when to choose the Android platform for your BNPL app development:

  • The Android platform is less expensive than building the iOS platform because of the open-source coding languages like Kotlin or Java
  • To target a larger user base, the Android platform will be the right choice 
  • If revenue models include ad-based revenue, then the Android user base would be best to go

Cross-Platform for BNPL App

Here we've listed when to choose the Cross-platform for your BNPL app development:

  • Cross-platform is a cost-effective option if you want to run your business on different operating systems
  • Requires single-base code to build both iOS and Android platform
  • Minimizes development time and cost
  • The preferable option for both small and medium-sized businesses to target both iOS and Android users

#2 Features and Functionalities

Integrating amazing features significantly enhances the overall user engagement and user experience of an app. It will help to enhance conversions and ultimately will boost revenue. 

If you want to incorporate amazing features, it will benefit your BNPL business growth. However, it will also increase the development cost. Following we’ve listed some of the must-have features for a BNPL application:

BNPL Features Details
User Registration and Verification Self-registration forms that can be customized for both merchants and customers (borrowers). In real time, the BNPL supplier verifies eligibility. This investigation evaluates the customer's creditworthiness and establishes if the BNPL option is feasible for them.
Account Management A crucial feature that provides access to customers to check their financial transaction history, payment method, quantity, etc.
Instant Credit Approval An immediate credit approval feature speeds up the checkout process and boosts conversion rates.
Payment Integration The payment integration feature allows users to have a seamless payment experience with the merchant checkout system.
Split Payments If approved, the total purchase amount is divided into multiple, often four, equal payments. The first payment is collected at the time of purchase, while the subsequent payments are scheduled at regular intervals, usually every two weeks.
Automatic Deductions Shop-now-pay-later apps like Tabby allow customers to make purchases and manage their payments conveniently. One of the benefits of these apps is that customers can enter their card details once, and the app will automatically deduct the amount from their bank account when payments are due.
Reminders and Notifications Customers who use this reminder feature are effectively notified about due dates, bill payments, on-time payments, and so on. The feature sets accurately illustrate this by helping the app win over users' trust.
Repayment Schedule The app should provide users with a repayment plan that shows the total amount owed and the dates of each payment.
Secure Payment Gateway Payment gateways are crucial in the BNPL process. They facilitate transactions and serve as intermediaries between customers, retailers, and BNPL providers. Payment gateways ensure secure and quick payment processing.
Merchant Analysis A BNPL app like Tabby should provide a merchant dashboard carrying all the insights regarding orders, pending payments, and revenue generation.
Cashback Cashback offers are a lucrative way to help users stick to the brands. By providing cashback rewards to your customers for their loyalty and continued patronage, you can build a strong bond of trust and reliability, which will help you attract and retain more customers.
Robust Security To safeguard consumers' confidential data and information, it is important to have robust security in your app. This feature helps to detect fraud and take protective measures to protect users' data and take protective measures.
Compliance It is important to understand that the buy-now and pay-later concept is relatively new in the Fintech industry. So, it might not be permitted by the regulatory compliances in your country. Also, if a customer is late with their payments, it could lower their credit score. However, if anything of that sort happens then it is important to contact the compliance bureau if any problem persists.
Credit Terms Users can repay the loans in a short period (generally weeks or months). However, users can extend their repayment term period for two or more years.
Multiple Payment Options Accept a variety of payment options, such as bank transfers, debit cards, and credit cards.
Credit Score Tracking Enables users to keep an eye on their credit history and score.
24/7 Customer Support Having customer support builds trust among both parties. Customers can get in touch with chat assistants regarding any issues or concerns faced by them.

If you want to build an app like Klarna or Tabby, make sure to integrate features that align with your vision and business objectives. 

In addition, having advanced features in your BNPL app would gradually increase the overall development cost of the BNPL app. 

If you still have doubts regarding the costs – then you can choose MVP Development for your BNPL app. Get in touch with Apptunix to know more!

#3 UI/ UX Design

The BNPL app interface needs to be responsive, accessible, intuitive, and user-friendly which would offer a better user experience. A team of professional designers will help you develop an amazing UI/UX design for your BNPL app

#4 Choosing the Right  Tech Stack

Your Fintech BNPL app will have a solid foundation with the help of a robust tech stack. Selecting the appropriate tech stack is crucial. Here is a list of key technologies for your Fintech application. Let's discover:

  • Native: Swift, Objective C, Kotlin
  • Hybrid: Flutter, React Native
  • Frontend: React JS, Angular
  • Backend: Node JS, .NET, Python, Java, PHP, TypeScript

Get in touch with Apptunix mobile app developers to have the right tech stack for your Fintech app. 

#5 Quality Assurance and Launching

Quality assurance is the most crucial aspect of BNPL app development before launching. It is important to use automated and manual testing techniques to thoroughly assess the security, functionality, and usability of your BNPL app. It will be beneficial to identify any errors, lagging issues, or other problems as soon as possible. 

It's time to make your BNPL app public once the testing process is finished to your satisfaction. 

Note: If you have a clear vision and a product ready with the most critical features, one way to move forward is with a Minimum Viable Product or MVP. 

You can proceed with a more thorough development process that includes improved functionality, a user interface, and other components if you have a better understanding of your target market and other relevant elements. 

Talk to investors about funding your full-fledged Buy Now and Pay Later app development. 

Looking for the best BNPL app development services at affordable prices – get in touch with Apptunix today!


7 Key Players of the BNPL Industry

The top players in the BNPL industry are showcased in the following image. Check out:

Top BNPL apps around the globe
  • Affirm: Founded in 2012, Affirm is based in the United States and offers buy now and pay later services for both online and offline purchases.
  • Tabby: Founded in 2019, Tabby is a fintech startup based in Saudi Arabia that offers buy now and pay later services to customers where customers can split their payments and shop without paying any interest or fees.
  • Addi: Founded in 2018, Addi is a technology company based in Bogota, Colombia, and offers banking and credit solutions to users. It also allows customers to purchase goods from both online and offline stores.
  • Afterpay: Founded in 2014, Afterpay is a fintech company based in Australia that offers buy now and pay later services to online customers.
  • ePaylater: Founded in 2015, ePaylater is a digital payment solution based in Mumbai that offers customers interest-free credit periods on their purchases. 
  • CredPal: Founded in 2018, CredPal is a tech company that allows customers to purchase products online and offline in installments. 
  • Klarna: Founded in 2005, Klarna is a fintech company based in Stockholm. Sweden with a mission to provide convenience to customers when it comes to shopping for items with BNPL solutions. 

Get the Best Mobile App Developers for Buy Now Pay Later App Development 

Apptunix is a leading mobile app development company. Our team of skilled designers and developers will help you create a customized Buy Now and Pay Later app development for your business. 

If you are looking for a reliable and experienced custom BNPL development partner, then Apptunix is the right choice for you. Contact us today to learn more about our services and kickstart your BNPL app development project with Apptunix experts.


Frequently Asked Questions(FAQs)

Q 1.How much will it cost to build a BNPL app like Tabby or Klarna?

The Buy Now and Pay Later app with basic features would take around $25,000 to $50,000. However, the cost will increase to $80,000 and beyond if advanced features are incorporated into the Buy Now and Pay Later app development.


Q 2.What are the different challenges associated with BNPL?

Following, we’ve discussed different challenges related to Buy Now and Pay Later. Let’s check:

  • Neck-to-Neck Competition: In the BNPL market, businesses are competing hard with each other. To keep your business ahead in the BNPL market – businesses must offer amazing features, improved customer-centric solutions, and exceptional customer service. 
  • Legal Regulations: Changing legal regulations impacts the BNPL operations for startups. And they must adapt quickly to these changing requirements along with building and maintaining customer relationships and trust. 
  • Consumer Behavior Shifts: While BNPL companies adapt to changing financial goals and economic conditions, they also need to remain cognizant of the needs and preferences of their consumers. As customer behavior patterns change, so too could the demand for these services.


Q 3.What are the different alternatives of Klarna or Tabby?

Some of the top alternatives of Klarna and Tabby include

  • PayPal Credit
  • Sezzle
  • Afterpay
  • Tamara
  • CredPal
  • ePayLater


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