What do users do when they want to buy something really bad but don’t have enough cash? Well, there are more than one option.
- You can swipe your credit card
- Use a store-backed layaway program
- Pay using a Buy Now Pay Later app
But not all options are good enough. Credit cards still work, but store layaway plans are obsolete (not all merchants are up to it). In contrast, Buy Now Pay Later Apps (BNPL) are widely used by shoppers everywhere. According to a 2023 industry report, almost 25% of American shoppers prefer using Buy Now Pay Later apps for multiple benefits-convenience, expense control, low risk, and zero maintenance fees.
But the perks of using a Buy Now Pay Later app aren’t restricted to buyers alone. The retailers, despite the third-party service fees, enjoy high sales volume across all seasons for BNPL purchases. No wonder finance companies are increasingly turning towards buy now pay later app development.
And as one might have guessed, the cost of developing a buy now pay later app is directly proportional to the features. In plain words, the more features there are, the more expensive it is. In this article, you will discover what is a Buy Now Pay Later app, its benefits, the must-have features, and the estimated development costs. Let’s go!
What is A Buy Now Pay Later App?
Buy Now Pay Later (BNPL) is essentially a short-term finance option that allows one to make purchases and repay over a specific period. In some places, a buy now, pay later option is also called a POS installment that comes with zero interest. Both traditional retailers and e-commerce platforms offer BNPL options to attract customers in buying more.
What Are The Benefits of Buy Now Pay Later Apps?
The global market size for Buy Now Pay Later apps is poised at $3.98 trillion by 2030. That’s a remarkable 45.7% CAGR rise from 2021! From expense control to low risks, Buy Now Pay Later apps have multiple good reasons for buyers and sellers.
- Boosting the end of a sales funnel: Imagine a shopper without a credit card. In such cases, Buy Now Pay Later apps are an equalizer. For retailers, it means having more potential buyers. What’s even better is that a BNPL app has almost the same features of a credit card but for more individual and smaller purchases.
- Unmatched and stress-free transactions: Compared to credit cards, Buy Now Pay Later apps offer a much lower rate of interest. They also have zero maintenance fees. Considering the average rate of interest for short-term loans is well above 20%, BNPL apps are a stress-free way to win what you desire with flexible repayment options. All it takes is a smartphone to make it work.
- Zero impact on credit score: A finance company needs to check a customer’s eligibility before offering a Buy Now Pay Later facility. But unlike the hard credit score pulls for credit card applications, a BNPL eligibility check is a soft pull. That means there is zero to minimal impact on your credit score.
- Minimal risk: A Buy Now Pay Later facility takes all kinds of risks into account. No matter how the customer chooses to pay, the merchant always receives the amount in full. So, even if the customer runs into default or misses a payment, the retailer will never have to chase a customer for payment.
- Effortless integrations: The BNPL facility can be easily integrated into a merchant’s existing payment process system. Unlike other integrations, it doesn’t require any advanced technical knowledge or significant investment.
What Are The Best Features To Have In A Buy Now Pay Later App?
The popularity of a Buy Now Pay Later app depends on its features. As a fintech company, you can customize a BNPL app with a wide range of options. Some of the must-have features within a buy now pay later app include:
- Low or zero maintenance fees
- Fixed spending limit to avoid overspending
- No hidden charges
- Secure transactions
- User-friendly interface
- Breezy verification
- Easy refunds
- Flexible payment plans
- Referral programs to win rewards
- Prompt notifications
What Is The Cost of Developing Buy Now Pay Later Apps ?
The cost of developing Buy Now Pay Later apps depend on multiple factors, like specific business needs, market demands, current trends, number of features, the technology used, and more. So, there’s no fixed rate at which you can avail these fintech app development services, even from the best players in the market. However, there’s a generalized formula that you can use to get an estimate of charges for developing a Buy Now Pay Later app.
| Total cost of buy now pay later app development = The time taken to develop the app x chargers per hour |
Additionally, the table below offers an estimation of charges for developing BNPL apps across different difficulty levels, features included, and time taken.
| Difficulty Level of Buy Now Pay Later Apps | Features | Estimated Charges | Time |
| Basic apps | Login User registration Product browsing Product selection Multiple modes of payments and selection Payments tracking Basic help and support | $50,000 – $80,000 and above | Between 2-4 months |
| Medium or semi-advanced apps | Login User registration Product browsing Product selection Multiple modes of payments and selection Payments tracking Basic help and support Integration with e-commerce platformsAdvanced user supportPersonalized recommendationsChat support | $90,000 – $150,000 and above | Between 4-7 months |
| Complex apps | Login User registration Product browsing Product selection Multiple modes of payments and selection Payments tracking Basic help and support Integration with e-commerce platformsAdvanced user supportPersonalized recommendationsChat support Customizable user profiles Advanced analytics Reporting Comprehensive API integration | From $200,000 and above | Between 8-12 months |
Wrap Up
So, you see, a Buy Now Pay Later app has multiple perks to offer. For retailers, it not only boosts the average sales figure but also lures maximum leads to increase the chance of conversion. Additionally, a Buy Now Pay Later facility encourages sales from repeat customers. Similarly, on the buyer side, it helps one fulfill their desire without having to break the bank. Also, the spending limit puts a leash on untoward expenses.
However, the efficacy of a BNPL app depends largely on the developer. So, before you hire an app development firm, always run a background check to gauge their quality and reputation. Then, have a detailed consultation call to explain your specific needs and get a transparent quote to avoid surprises later.
