As the world continues to embrace cashless transactions and digital payments, the financial technology (FinTech) industry is continuously evolving to meet the changing needs of consumers. One of the latest trends in the FinTech space is the Buy Now Pay Later (BNPL) app.
It’s perfect for those who want to buy things they can’t afford and pay in installments over a period of time. And for businesses, it’s a surefire way to increase sales by offering an attractive payment option to their customers.
But let’s not kid ourselves; developing a successful BNPL app isn’t easy. There are challenges that startups and entrepreneurs in the FinTech space need to overcome. But fear not, because I have leveraged my 10+ years of FinTech market experience to design this guide meticulously, aiming at satisfying all your curiosity about BNPL app development.
So, stick around! You’ll learn about BNPL’s definition, development, and how to become a market leader in the FinTech space. We’ll also give you tips on how to compete in a crowded market, as well as showcase some top-notch BNPL app solutions that are an idol for FinTech startups, entrepreneurs, or companies looking to upgrade their existing solutions.
So buckle up and get ready to enter the world of BNPL app development!
How does the BNPL solution works?
To understand how the Buy Now Pay Later app works, let us take an example of the world-famous BNPL app solution, Klarna.
- Payment option at checkout: When a customer is making a purchase online or in-store, they can choose Klarna as their payment option during checkout.
- Klarna pays the merchant: Once the customer selects Klarna as their payment option, Klarna pays the merchant for the full amount of the purchase.
- Customers pay in installments: Instead of paying the full amount upfront, customers can pay for their purchase in four interest-free installments. The first payment is due at the time of purchase, and the remaining three payments are due every two weeks.
- Customers can pay over a longer period: Customers also have the option to pay over a longer period with interest, depending on the merchant and the terms of their agreement with Klarna.
- Klarna assumes the credit risk: Klarna assumes the credit risk of the transaction, meaning that if the customer fails to pay, Klarna is responsible for collecting the debt from the customer.
- Customers can manage their payments: Customers can manage their payments, view their payment schedule, and make payments through the Klarna app.
