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Many users are hesitant to use their credit cards for casual shopping sprees because they generally come with high-interest fees. To address this problem, we have seen several BNPL apps like ViaBill, which have recently become popular, as they allow users to borrow money without paying any interest.
As a matter of fact, ViaBill, a popular BNPL app in Denmark, already has around 1 million active users, and this number is only growing. By developing a similar user-friendly BNPL app, fintech companies can jump on this lucrative trend and create a loyal following for their brand!
What is the ViaBill App?
The ViaBill app is a BNPL application that helps users shop at their favorite stores and split their purchases into manageable installments. With the ViaBill app, users can enjoy flexible payment options, track their spending effortlessly, and manage their accounts conveniently, all from their mobile devices.
What Makes the ViaBill App Unique?
ViaBill stands out by offering a combination of flexibility and control through its user-friendly mobile app. The ViaBill app empowers businesses to reach new customers by enabling them to accept BNPL payments seamlessly at checkout. ViaBill then takes on the responsibility of collecting payments from users in installments through their Split Pay feature, ensuring businesses get paid upfront. This eliminates the risk of fraud and late payments for businesses while also providing valuable customer data and spending insights.
For consumers, the ViaBill app unlocks a world of stress-free shopping. Features like the ViaBill Virtual Card and physical Mastercard allow for easy online and in-store purchases. At the same time, the app itself offers complete transparency into spending habits with features like Transaction History and Balance Tracking. ViaBill’s installment plans, which are spread over multiple months, offer users the ability to manage their finances and avoid credit card debt effectively.
What is the Business Model of ViaBill?
Unlike traditional card payments, ViaBill allows customers to split their purchases into installments over 24 months, completely interest and fee-free. There’s no penalty for early repayment either. However, if a customer misses a payment deadline, a 39 DKK (currency of Denmark) fee is applied for using a collection service. Webshops benefit by receiving payment immediately after the return window closes and incurring a low 0.75% transaction fee (excluding VAT).
Setting up a ViaBill account is free and requires minimal effort. Merchants simply need to integrate the API key into their existing Quickpay manager. This way, ViaBill becomes a seamless payment option for Danish customers without any additional costs for them.
ViaBill Account Options
| Account Type | Credit Limit | Account Fee (Monthly) |
| ViaBill Free | 2,000 DKK | Free |
| ViaBill Plus | 2,000 DKK | 35 DKK |
| ViaBill Plus | 4,000 DKK | 69 DKK |
| ViaBill Plus | 6,000 DKK | 99 DKK |
| ViaBill Plus | 8,000 DKK | 135 DKK |
| ViaBill Plus | 10,000 DKK | 169 DKK |
| ViaBill Plus | 12,000 DKK | 199 DKK |
| ViaBill Plus | 14,000 DKK | 239 DKK |
| ViaBill Plus | 16,000 DKK | 269 DKK |
| ViaBill Plus | 18,000 DKK | 299 DKK |
| ViaBill Plus | 20,000 DKK | 329 DKK |
| ViaBill Plus | 22,000 DKK | 379 DKK |
Key Market Takeaways for BNPL Apps
Source: GrandViewResearch
Consumers are increasingly seeking alternatives to traditional upfront payments. BNPL services cater to this need by allowing customers to split purchases into installments, easing the financial burden and providing greater flexibility in managing their budgets. This resonates particularly with younger generations, who are comfortable with digital transactions and prioritize financial control.
Underscoring this trend, Apple recently announced its own BNPL service, Apple Pay Later, signaling the growing importance of the BNPL market for major tech companies. Additionally, partnerships between BNPL providers and major retailers are becoming increasingly common. For instance, Klarna’s recent collaboration with Macy’s allows customers to utilize Klarna’s BNPL options at checkout, showcasing the potential for BNPL to expand beyond traditional e-commerce platforms.
What Features Make ViaBill App So Popular Among Its Users?
In the age of instant gratification, BNPL services like ViaBill have surged in popularity. But what specific features make the ViaBill app a favorite among its users? Here are some key functionalities that contribute to ViaBill’s success:
1. Split purchase Functionality
ViaBill allows users to break down purchases into manageable installments using their Split Pay feature, typically ranging from 4 to 24 months. This makes larger purchases more affordable, allowing users to enjoy what they want today without derailing their budget.
2. Flexibility with ViaBill Virtual Card
The ViaBill app offers a ViaBill Virtual Card that transcends the limitations of physical stores. This virtual card grants users the freedom to shop online securely, even at retailers that don’t directly partner with ViaBill. This broadens buying options and caters to the growing trend of online shopping.
3. Transparency through Clear Spending Tracking
The ViaBill app empowers users to have clear visibility of their spending habits through the My Transactions section. All transactions are consolidated in one place, allowing users to monitor their outlays and stay on top of upcoming payments. This fosters financial responsibility and helps users make informed spending decisions.
4. Credit Limit Visibility
Financial awareness is key, and ViaBill provides users with easy access to their credit limit directly within the app through the Credit Limit view. This transparency allows users to plan their purchases strategically and avoid exceeding their spending capacity.
5. Convenience of Managing Payments
Juggling multiple bills can be cumbersome. ViaBill simplifies this process by enabling users to schedule and manage their monthly payments directly through the ViaBill Manage Payments feature within the app. This streamlines the repayment process by eliminating the requirement to remember due dates or log in to separate platforms.
6. Potential for exclusive perks
Some ViaBill plans offer additional incentives like exclusive discounts or promotions at partnered stores. These perks can act as a sweetener, further enhancing the value proposition for users and potentially influencing their purchasing decisions.
How to Develop a BNPL App Like ViaBill?
Developing a BNPL app like ViaBill involves a comprehensive strategy that focuses on understanding the market, adhering to regulations, and creating a user-friendly platform. Here are some essential steps to guide the development process:
1. Define Your Niche and Target Audience
In order to tailor your app to meet the requirements of your target audience, it’s crucial to select a particular niche and target market. While ViaBill focuses on Denmark, it might be more relevant for your app to target different geographical areas or specific customer segments, like students or young professionals. By understanding the needs and obstacles of the target audience regarding BNPL options, you can ensure that your app meets their expectations.
2. Craft a Compelling Value Proposition
Developing a unique value proposition is essential. This could include offering lower fees, faster approval processes, or additional features not provided by competitors. An interesting value proposition will attract users and set the app apart from others in the market.
3. Navigate Regulatory Requirements
Compliance with financial regulations is paramount in the BNPL sector. Researching and adhering to relevant licensing and data security regulations in the target market ensures the app operates legally and maintains user trust. Partnering with legal experts can streamline this process.
4. Design a Secure and User-Friendly App
A seamless and intuitive user interface is critical for managing accounts, making payments, and tracking installments. Prioritizing user experience enhances satisfaction and engagement. Additionally, implementing robust security measures protects user data and financial information, fostering trust and reliability.
4. Integrate Payment Processing Systems
Partnering with reliable payment processors is vital for facilitating secure and efficient transaction processing. Integrating with popular digital wallets can also enhance user adoption and convenience, providing more payment options for users.
5. Develop Risk Management Strategies
Building effective credit scoring models or alternative methods to assess borrower suitability helps mitigate risk. Designing features that encourage responsible borrowing behavior, such as on-time payment reminders and educational resources, promotes financial health among users and reduces default rates.
6. Integrate with Merchant Networks
Partnering with merchants allows users to utilize the BNPL service at various stores or online platforms. Offering attractive benefits to merchants, such as faster payment settlements or increased customer reach, encourages partnerships and expands the app’s usability.
7. Partnership with Educational Institutions
Collaborating with educational institutions to offer BNPL options for educational expenses like tuition fees or study materials can create a niche market. Integrating the service with student portals or offering scholarships and discounts in collaboration with institutions adds value and broadens the app’s appeal.
8. Launch and Market the App
Developing a comprehensive launch and marketing strategy ensures the app reaches its target audience effectively. Utilizing digital marketing, social media campaigns, and partnerships with influencers can drive awareness and adoption. Continuously monitoring User feedback and market trends helps refine marketing efforts and improve the app.
What is the Cost of Developing a BNPL App like Viabill?
| Phase | Task | Estimated Cost | Details |
| 1. Research & Planning | Market Research | $5,000 – $10,000 | Analyzing competitor landscape, target audience demographics, and relevant regulations. |
| Feature Planning | $5,000 – $10,000 | Defining core functionalities, prioritizing them based on user needs, and creating user stories. | |
| Technical Feasibility Analysis | $5,000 – $15,000 | Assessing technical requirements, choosing development approach (native vs. cross-platform), and outlining timeline. | |
| Total for Research & Planning | $5,000 – $20,000 | ||
| 2. Front-End Development | UI/UX Design | $15,000 – $50,000 | Creating a user-friendly and intuitive interface. Cost depends on complexity, number of screens, and level of animation. |
| Front-End Development | $10,000 – $50,000 | Building the app’s user interface using frameworks like React Native or Flutter. | |
| Total for Front-End Development | $25,000 – $100,000 | ||
| 3. Back-End Development | API Integrations | $10,000 – $50,000 | Connecting with payment gateways, credit bureaus, and partner merchants. |
| Security Features | $15,000 – $75,000 | Implementing robust security measures. | |
| Database Management | $10,000 – $25,000 | Setting up a secure database for user information and transactions. | |
| Total for Back-End Development | $40,000 – $150,000 | ||
| 4. App Features | Shop Now, Pay Later Functionality | $25,000 – $100,000+ | Core functionality for robust payment processing and merchant integration. |
| Credit Check Bypass/Soft Inquiry | $15,000 – $40,000+ | Integration with credit bureaus and alternative creditworthiness assessments. | |
| Flexible Payment Options | $10,000 – $20,000 | Developing logic for users to choose their payment schedule. | |
| Product Marketplace | $40,000+ | Building a curated marketplace with product management functionalities. | |
| Account Management Features | $15,000 – $30,000 | Developing order tracking, payment history, and secure user profile management. | |
| Total for App Features | Highly Variable | ||
| 5. Testing & Quality Assurance | Functional Testing | $5,000 – $15,000 | Ensuring all features work as intended across different devices and platforms. |
| Security Testing | $5,000 – $10,000 | Identifying and addressing potential security vulnerabilities. | |
| Performance Testing | $5,000 – $10,000 | Optimizing app performance and responsiveness. | |
| Total for Testing & QA | $15,000 – $30,000 |
Total Cost Range: $130,000 – $500,000+
While the core functionalities of BNPL apps share similarities, developing an app like ViaBill can introduce some unique cost considerations:
1. Split-Pay Functionality
ViaBill allows users to split their purchases into multiple payments over an extended timeframe (often longer than the typical 4-6 installments offered by most BNPL apps). Developing the logic for managing these longer payment schedules, including potential late fees and adjustments, adds complexity to the back-end development process compared to a standard BNPL app. This can translate to higher development costs.
2. In-Store Payment Integration
If ViaBill plans to offer in-store payment options through QR codes or other methods, additional development efforts are required. This involves integrating with point-of-sale (POS) systems used by merchants and ensuring secure in-store transaction processing. These integrations can be complex and add to the development cost.
3. Social Commerce Features
ViaBill incorporates social commerce elements, allowing users to share and discover products through their network. Building these features requires additional development for functionalities like social sharing, user recommendations, and potentially a referral program. The complexity of these social features will directly impact the development cost.
4. Loyalty and Rewards Program
ViaBill offers a loyalty program that incentivizes users with rewards for on-time payments and referrals. Developing a loyalty program system, including tracking user behavior, managing reward points, and integrating with any potential reward redemption options, adds another layer of complexity to the development process. This can significantly impact the overall cost depending on the chosen reward structure and user engagement features.
What Tech Stacks Required to Develop a BNPL App Like ViaBill?
Developing a BNPL app like ViaBill requires a robust and diverse technology stack. The following components are essential for building a secure, scalable, and user-friendly BNPL application:
1. Front-End Development
Companies can use frameworks that can include React Native or Flutter to build a single codebase for iOS and Android platforms. This strategy can lead to considerable time and resource savings during development while also ensuring a uniform user experience across various devices.
2. Cloud Platforms
GCP and AWS provide scalable infrastructure to handle user data, transactions, and integrations with financial institutions. These platforms offer reliable storage solutions, computing power, and essential tools for deploying and managing applications efficiently.
3. Programming Languages
Programming languages, which can include Java, Python, and Go, are ideal for building secure and robust back-end systems. They offer extensive libraries and frameworks for developing financial applications, ensuring the app’s stability and performance.
4. API Gateways
API gateways act as secure entry points for managing APIs that connect the BNPL app to financial institutions and payment processors. They ensure seamless communication, data exchange, and integration with external services, enhancing the app’s functionality.
5. Payment Processing (Stripe, Adyen)
Partnering with established payment processors like Stripe or Adyen ensures secure and efficient transaction handling within the BNPL app. These processors provide reliable payment gateways, fraud detection, and compliance with financial regulations.
6. Behavioral Economics Integration
Incorporating insights from behavioral economics helps nudge users toward responsible spending habits. Features like “nudge buttons” highlight the total cost of a purchase split into installments, while visually appealing progress bars display savings goals. These elements encourage users to make informed financial decisions.
7. Tokenization
Tokenization replaces actual credit card details with unique tokens during transactions, adding an extra layer of security. This process protects sensitive financial information and reduces the risk of data breaches, ensuring user trust and compliance with security standards.
8. Real-time Transaction Monitoring
Advanced fraud detection systems employing machine learning models analyze transaction patterns, location data, and device characteristics to identify suspicious activity in real time. This proactive approach prevents fraudulent purchases and enhances the app’s security.
9. Data Analytics Tools
Leveraging tools like Google Analytics or Mixpanel allows developers to track user behavior, identify trends, and optimize the BNPL app for a better user experience. These tools offer valuable insights into user engagement, enabling businesses to make data-driven decisions.
Conclusion
Creating a BNPL app can be a lucrative opportunity for businesses. These apps let people buy things and pay for them later, which many shoppers like. This is because it makes shopping easier, especially online, and helps them manage their money better without using credit cards. Businesses that offer BNPL can attract more customers, sell more products, and keep shoppers coming back. Plus, the BNPL market is still growing, so starting now can give businesses a big advantage.
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FAQs
Q1: What is the source of income for BNPL?
A1: BNPL platforms like ViaBill generate revenue through multiple channels. The primary source comes from merchant fees, a percentage of each transaction paid by partnering businesses. They may also earn late payment penalties from users who miss installments. Additionally, some BNPL providers offer premium features or subscriptions for benefits like extended payment terms or higher spending limits.
Q2: How to develop a BNPL app?
A2: Developing a BNPL app requires a multi-step approach. First, define your target audience and unique features. Then, prioritize user experience with a secure and intuitive interface. Partner with reputable payment processors and financial institutions to ensure seamless transactions. Next, choose a development team with expertise in building secure financial applications. Finally, rigorous testing and regulatory compliance are crucial before launching your BNPL app to the market.
Q3: What are the features of a BNPL app?
A3: BNPL apps such as ViaBill provide a convenient way to divide purchases into installments. Users can easily manage their accounts, monitor spending, and make payments directly through the application. For merchants, BNPL integrations can increase sales by enabling customers to checkout faster and pay over time. These applications leverage secure payment processing and often provide virtual cards for online transactions, with some even offering physical cards for in-store purchases.
Q4: What is the cost of developing a BNPL App?
A4: The cost of developing a BNPL app depends heavily on the features and complexity you envision. Building a basic app will differ significantly from a feature-rich platform. Security measures, development approaches, and integrations with financial institutions all play a role in determining the final cost.
