How Much Does It Cost to Build a BNPL App Like Afterpay?

How Much Does It Cost to Build a BNPL App Like Afterpay?

People are always on the lookout for flexible and personalized payment solutions that suit their spending patterns and financial objectives in the ever-changing consumer landscape of today. This shift in perspective has spurred several revolutionary innovations in the FinTech industry, with the "Buy Now, Pay Later" movement emerging as a leader and gaining lasting relevance. Further, BNPL apps change the financial planning and management paradigm by allowing for proactive budgeting and hassle-free money management. One of the earliest leaders in the BNPL app space, Afterpay, has entirely altered how customers shop and pay for things. With Afterpay, customers can split up their purchases into interest-free installments, making accessibility more affordable and lowering the price of expensive items.

Its popularity is boosted by millions of users globally through its seamless integration with online as well as offline companies. There are many variables like the cost of development, legal compliance, and technological infrastructure that have to be considered while developing a BNPL app. Still, the cost of development for an app similar to Afterpay is usually between $35,000-$250,000. 

Massive Growth of the BNPL Market and Afterpay App

The BNPL market, according to Grand View Research, is expected to grow at a compound annual growth rate of 24.3% from 2023 to 2030 and is estimated to reach a valuation of $38.57 billion. There are many significant factors contributing to this growth trajectory: it is driven by the industry dynamics and influencing customer behavior. First, clients are favoring flexible payment alternatives more and more since budgeting needs to be easy and flexible.

The explosive expansion of eCommerce is yet another factor propelling the demand for BNPL services. Customers' growing need for seamless checkout processes and smooth payment experiences contributes to this requirement. The younger generation, which includes Gen Z and Millennials, places greater emphasis on convenience and transparency in purchasing decisions, so BNPL solutions are significantly favored. Afterpay is an online 'buy now, pay later' company that was launched in Australia in 2015. This platform allows a user to split purchases into interest-free installments.

Factors Affecting the Cost to Develop an App Like Afterpay

1. Feature Set 
The complexity and volume of features greatly determine development costs. A full-fledged BNPL app similar to Afterpay would necessitate the following basic features: payment scheduling, user authentication, and tracking transactions, while advanced features would include AI-driven risk assessment. Any extra feature would increase the cost and timeline.

2. User Experience Design
An interface that is seamless and user-friendly is essential for retaining customers. The design of an intuitive app with smooth navigation and pleasing visuals requires expert UI/UX design, which affects the overall budget.

3. Compatibility with Platforms
Building an app for multiple platforms (iOS, Android, web) would be costlier than building for one platform. Cross-platform frameworks can thus save costs while maintaining quality.

4. Integration with External Systems
An app for BNPL often demands integration with third-party systems such as payment gateways, CRM tools, and analytics platforms. This level of integration complicates the process and may add to the cost.

5. Security Requirements
A financial app should have high-level security in terms of encryption, secure payment gateways, and fraud prevention systems. These increase the development cost but cannot be compromised to gain user confidence.

6. Regulatory Compliance
Adherence to regulations like PCI DSS, GDPR, or region-specific financial regulations is added to the cost. Compliance ensures that the app meets the legal standards, which in turn creates reliability and trust among the users.

7. Location of the Development Team
The development costs vary based on the geographical location of the team. Choosing a company like Osiz, with global reach and competitive pricing, ensures quality and cost-effectiveness.

8. Size of the Development Team
The cost is determined by the development team's structure, including developers, designers, testers, and project managers. A well-structured team will ensure efficient completion within the budget and desired timeline.

Must-Have Features for an App Similar to Afterpay

1. User Panel

• Easy sign-up and login
• Dashboard with transaction history
• Payment scheduling and reminders
• User support and FAQs

2. Retailer Panel

• Merchant onboarding
• Product catalog management
• Transaction tracking and settlement
• Sales insights and analytics

3. Admin Panel

• User and retailer management
• Transaction monitoring
• Fraud detection and prevention tools
• Revenue and performance reports

Advanced Features of a BNPL App Like Afterpay

1. AI-based Risk Analysis
Our products use AI-based algorithms for creditworthiness analysis and real-time risk assessment to enable smooth loan approvals while avoiding potential losses.

2. Financial Health Tools
Users are given insights into their spending habits, budgeting assistance, and personalized recommendations to improve financial health.

3. Smart Notifications
Automated alerts for payment reminders, due dates, and promotional offers ensure user engagement and timely payments.

4. Augmented Reality Try-Ons
Allow users to visualize products such as clothing or accessories in real-time via AR, which enhances their shopping experience and boosts conversion.

5. Green Finance Options
Encourage your cause by giving users a chance to contribute to eco-conscious retailers or green causes with each sale.

6. Multiple Languages and Currencies Supported
Osiz makes sure your app supports multiple languages and currencies to accommodate a multitude of user bases, maximizing its accessibility and reach into markets worldwide.

Why Choose Osiz to Develop a BNPL App Like Afterpay?

Osiz has vast experience in delivering cutting-edge applications in the area of financial technology. Osiz fully understands the issues associated with BNPL applications and tailors solutions for each particular business need. We design BNPL apps keeping flexibility in mind. They offer businesses the option of incorporating must-have features like a user dashboard, retailer panels, and admin controls besides other advanced functionalities like AI-driven risk assessments and financial wellness tools. Our expertise includes integrating third-party services like payment gateways, CRMs, and analytics tools to make the whole process smooth and efficient. Choosing Osiz for your BNPL app development means entrusting your choice to a team that values innovation, security, and user satisfaction.