A Comprehensive Guide to BNPL App Development like Klarna or Tabby

Fintech companies are evolving continuously to meet the changing needs of consumers in this digital era. One of the latest trends is Buy Now, Pay Later (BNPL), which has emerged as a hot topic 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. For Fintech businesses, it is a surefire 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.

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. 

In simple words, customers who cannot afford to pay the total amount upfront can purchase goods from a particular merchant with the pay later option. Here, customers can make payments 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):

How Does BNPL Differ from Traditional Credit Cards?

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

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 become more inclined towards e-commerce or online shopping with flexible payment options. 

It is essential to investigate the mechanics underlying these services to understand the evolution of BNPL.

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 essential to choose the platform first – it can be iOS, Android, or a cross-platform solution. The first two (iOS and Android) consume more time and money. On the other hand, cross-platform solutions are more cost-effective and consume 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 platforms
• Minimizes development time and cost
• The preferred option for both small and medium-sized businesses is 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 boost revenue. 

To incorporate amazing features, it will benefit your buy now, pay later (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:

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

Additionally, incorporating advanced features into 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 launch. It is essential to employ both automated and manual testing techniques to thoroughly evaluate 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-friendly interface, and other key components if you have a better understanding of your target market and other relevant factors. 

Discuss funding options with investors for your comprehensive Buy Now, 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:

1. Affirm: Founded in 2012, Affirm is based in the United States and offers a buy now, pay later service for both online and offline purchases.

2. Tabby: Founded in 2019, Tabby is a fintech startup based in Saudi Arabia that offers buy now, pay later services to customers, allowing them to split their payments and shop without incurring any interest or fees.

3. Addi: Founded in 2018, Addi is a technology company based in Bogotá, Colombia, offering banking and credit solutions to users. It also allows customers to purchase goods from both online and offline stores.

4. Afterpay: Founded in 2014, Afterpay is a fintech company based in Australia that provides buy now, pay later services to online customers.

5. ePaylater: Founded in 2015, ePaylater is a digital payment solution based in Mumbai that offers customers interest-free credit periods on their purchases. 

6. CredPal: Founded in 2018, CredPal is a tech company that allows customers to purchase products online and offline in installments. 

7. Klarna: Founded in 2005, Klarna is a fintech company based in Stockholm. Sweden has a mission to provide convenience to customers when shopping for items using BNPL solutions. 

Read More: How Does Klarna Work: Klarna Business and Revenue Model Explained!

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 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.