How to Create An App like Klarna? | Build BNPL App like Klarna

As the world is rapidly evolving with cashless and digital payments, the rise in the financial technology (Fintech) industry is also expanding to satisfy customers' needs. You are digging into one of the popular Fintech trends - the Buy Now Pay Later (BNPL) app. This app is perfect for those who want to buy something but cannot afford full payment simultaneously. For businesses, it's a solid way to maximize sales by offering a stunning payment alternative to their customers. However, developing a successful BNPL app is complex. Startups and entrepreneurs in the Fintech space must navigate difficulties. We conclude with tips on competing in a crowded market and showcase top-notch BNPL app solutions ideal for Fintech startups, entrepreneurs, or companies looking to upgrade their existing solutions. So, buckle up and prepare to enter the BNPL app development world.

Key Feature of Buy Now Pay Later App

As we better understand the concept of BNPL apps, it is time to list their features.

1. Users App Features

Terms of Credit

The terms of credit vary between vendors. Buy Now Pay Later App Like Klarna, it has different payment modes; the most popular one is Pay in 6, 12, and 24, which allows users to pay in 6, 12, and 24 installments.

Purchase Limit

Again, the purchasing limit depends on the vendor's decision and the user’s repayment history. The most popular BNPL apps, like Slice, determine a user’s credit limit based on their credit score and past repayment history.

User Convenience

The instant credit facility allows users to purchase and pay later according to the mutual agreement date or time. This differs entirely from a traditional loan facility, which involves applying, filling out information, and getting permission.

Repayment Frequency

The repayment frequency is set according to the vendor's decision and can be fixed at intervals over time. The user can pay at set intervals of days or monthly EMIs, but the product seller gets the entire payment upfront. The different payment modes enable users to pay the amount in EMIs, making the repayment process more manageable.

Multiple Payment Options from Multiple Gateways

Sometimes, it is about more than just payment. Linking the payment gateway provides more convenience to customers. You can target a wider audience by incorporating multiple payment gateways, such as credit cards, digital wallets, or bank transfers. Features like Flexible payment plans, tracking purchases, interest rates and fees, customer support, security, and integration.

2. Merchant Panel

The retailer's panel of the app should consist of features. It will work according to the users' required details to provide a personalized experience on the app.

• User Accounts: Merchants can check the user onboard and ensure their navigation on the app. This allows customers to sign in and handle the payments efficiently.
• Transaction Security: To protect financial transactions, the app must offer end-to-end encryption and secure payment gateways. An end-to-end encrypted and secure payment gateway should be integrated into the app.
• Credit check: Checking the credit score and transactions is a mandatory feature in your BNPL app. It should verify users' credit details on a real-time basis.
• Data Analytics: The app merchant should access a dashboard to evaluate the data. The dashboard analyzes customers' behaviour, market campaigns, transaction history, and other essential aspects.

3. Admin Panel

There is an admin dashboard that entrepreneurs can use to check the smooth functioning of a business. The admin can get the consolidated data of each customer, Merchant, and staff member.

• Account Management: The admin panel can manage and modify anyone's account. The admin can also oversee the profiles and payment history.
• Financial Reports: The admin panel allows you to manage the entire app. It auto-generates consolidated reports of the users' transactions, which can help them provide detailed insight into bad debts, receipts, and payments.
• In-App Customer Support: The customer support help desk is a consistent feature in every Fintech app that offers 24/7 support to the users, increasing your app's credibility.
• Checkout Integration: Integrating a streamlined checkout solution gives your app a seamless payment experience. Moreover, the admin panel can integrate other payment gateways whenever required. Therefore, it undertakes security compliance to improve functionality.

Why Is BNPL Apps Like Simple Trending?

Like you, we are also in awe of what is magnetizing in BNPL. It has caught the attention of businesses, retailers, and customers. These payment options are hassle-free. Some apps offer zero document verification and instant credit facilities. Nearly 60% of users prefer BNPL apps over credit cards.

Convenience is the key

We all love the ease of online shopping, but sometimes we have tight budgets and need help to buy what there is then. BNPL allows retailers to split costs into smaller, more manageable payments, making those must-have purchases much more attainable.

Repetitive Customers

Increased conversion rates establish their authority; repetitive customers are another benefit BNPL apps offer. The easy pay options attract a young and repetitive customer base. New rewards and discount offers always attract customers. Irresistible offers and rewards offer instant gratification. Businesses offering BNPL services are counted on to make sales and register repeat customers.

Global Presence

Now, Buy Now Pay Later (BNPL) services are available on six continents, including the United States, Australia, India, New Zealand, Brazil, Colombia, and several Middle Eastern and African countries. This widespread presence establishes BNPL as a global financial option for consumers.

How Does BNPL Business Make Money?

BNPL business models have proven profitable when the proper revenue streams bind them. There are multiple ways of making money in BNPL businesses. So, let's explore in detail how BNPL companies are getting an expansion in their ROI.

Late Payment Fees

BNPL apps are making good ROI through late payment fees and penalties. When customers cannot make timely payments, they must pay additional late fees at the time of repayment. For example, if a customer buys something for $60 using the BNPL app and fails to repay it on the due date, they will need to pay extra late fee charges of $10 on a daily basis.

Flat Transaction Fees

BNPL companies charge a flat processing fee for each transaction using their platform. This fee is fixed as per the transaction. It provides a legitimate revenue opportunity for the BNPL business and can be used to cover operational costs and generate profits.

Merchant Fee

As a BNPL service provider, you can charge merchants transaction fees for using your platform to receive payments from customers conveniently. These fees may vary depending on the sale value of transactions they make. For instance, Simpl, a popular BNPL app, charges merchants a $2 flat fee and a 6% transaction fee for each sale made via their platform.

Partner with NBFCs

BNPL businesses can partner with banks and financial institutions like NBFCs to offer finance services. These are revenue-sharing agreements in which you get an agreed-upon share of the interest of each successful transaction.

What Are The Steps for Developing a BNPL App Similar To Klarna?

While developing any BNPL app like Klarna, the team would follow specific steps, such as requirements and system analysis, code writing, and allocating required tools for the development phase. Here is the process of initiating the development of BNPL apps.

Requirement Analysis

Requirement analysis is the process of determining a client's expectations for a new product idea. It is usually an effort made by the project manager's team and demands various soft human skills such as critical thinking, communication, and judgment. Any app idea always requires initial planning and detailed information gathering. Understanding market trends for a concept, such as a BNPL app like Klarna, becomes critical.

Requirement analysis consists of competitor analysis. When you understand what the competitors offer, you can identify what values they will bring and what solutions they will deliver. Gathering all the information helps you draw out a rough outline. The information outlines your application, which can be developed as an MVP and transformed into a distinct product.

System Analysis & Design Experience

This step identifies the gaps between the actual requirement ideation and conceptualization processes. It is about going deep into the system software. This step is introduced when you have mapped out the system requirement for the project. Deciding on the UI/UX would be the primary decision; it can never be an afterthought. It would be best if you worked with a designer to finalize the look and feel of the end product. It consists of a colour palette, overall theme, aesthetics, and other things that can help reduce the conflicts later.

Development

In this phase of the project, code can typically be in initiation. Writing code in this section allows for more precise evaluation and minimizes delays and disruptions. Tools such as GitHub, Asana, and Trello can be used to validate the process of project advancements. Security is one of the vital considerations, as BNPL apps deal only with financial information and transactions. Such sensitive information demands a high-security layer to ensure application optimization.

Testing Phase

Once the project manager completes and finalizes the development, the QA and testers come into action. Testers and QA do rigorous testing on the completed project so they can test the application for any bugs. Any bugs in the application while being used can be reported as an issue and given back to the developer's team after the project manager validates them. Once the testers test the BNPL software, it is ready for deployment.

Deployment & Maintenance

It's time to launch and deploy apps on various platforms to make them available for users. Customer feedback is incorporated to improve the app and ensure a seamless user experience. Depending on your contract, post-launch services will be provided to the client. You can discuss this earlier with your app development company before initiating the project, whether they are providing post-launch support or not.

Cost of Developing a Buy Now Pay Later App Like Klarna

Here is the list of aspects that can influence the cost of buy now, pay later app:

• Features of the product
• Design of product
• Technology stack
• Number of the teams
• Duration
• Features Listings

The central aspect influencing a project's cost is the hourly rate of developers. It varies depending on where you hire developers. If you hire mobile app developers in Dubai, developing a BNPL app costs around $40,000 to $70,000. But if you hire a team of mobile developers from the USA, the cost might rise upto $150,000 to $300,000.

How Does Suffescom Solutions Help You Develop a Buy Now Pay Later App Like Klarna?

Suffescom would be your perfect partner for developing a Buy Now Pay Later app like Klarna, offering expertise, experience, and quality work to bring life to your vision. We understand that a client's unique demands require unique solutions. To develop tailored solutions, our team works in detail to provide a solution that aligns with your business goals and caters to the target audience. From UI/UX designing to backend integration, we ensure that your BNPL app is built with a solid architecture that can handle the demands of a growing user base.

Suffescom ensures that post-launch support and maintenance keep the app updated and well-secured with current challenges while striving for optimum performance.

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