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These days, many people are starting to use various BNPL platforms like Jifiti. Thanks to these apps, ordinary people can buy whatever they like without putting a strain on their pockets. And it’s not just everyday users who benefit – even businesses can see increased sales conversions and average order value. In a world where convenience reigns supreme, BNPL platforms are a win-win for both consumers and businesses.
By developing a unique BNPL platform, you can tap into both these audiences and generate a hefty stream of revenue. So, in this blog, we will be discussing everything you need to develop these kinds of platforms from scratch. So, let’s start!
What is the Jifiti BNPL Platform?
Jifiti’s BNPL platform was developed in 2011. It acts as a middleman, connecting banks, lenders, and merchants to offer various “buy now, pay later” options to consumers. Jifiti’s white-label design hides its involvement, making the financing feel like part of the merchant’s brand. This allows for flexible payment plans like installments or split payments, potentially increasing sales for merchants and offering financing choices to consumers. Jifiti’s partnerships with major players like IKEA and Citizens Pay allow them to provide a seamless financing experience for a wide range of consumers and businesses.
What Makes the Jifiti BNPL Platform Unique?
Jifiti’s platform carves a distinct niche with its feature set designed to supercharge businesses and address a broader spectrum of customer requirements. A core differentiator is their Multi-Lender Network. Jifiti acts as a bridge, connecting merchants with a network of reputable lenders like Citizens Pay, Mastercard, CaixaBank, and Credit Agricole.
This not only increases customer approval rates for BNPL options but also ensures access to competitive interest rates through their “waterfall” method. With this method, if the first lender doesn’t approve a customer’s application, it’s automatically routed to the next one in the network. Further enhancing its appeal, Jifiti’s platform boasts a comprehensive suite of BNPL options. This includes everything from flexible Installment Loans and Lines of Credit to popular Split Pay programs like Pay in 4 and Pay in 3.
Key Market Takeaways for BNPL Platforms
Source: FortuneBusinessInsights
E-commerce platforms can leverage BNPL to attract new customers and boost sales. The convenience and flexibility of BNPL options, particularly for smaller purchases, can incentivize customers to complete transactions and potentially spend more. Additionally, BNPL can act as a powerful tool to retain existing users by offering them a more manageable way to pay for their online purchases. For example, Klarna recently partnered with Adobe Commerce, which streamlines BNPL integration for merchants, and PPRO’s collaboration with Afterpay to expand BNPL options for US consumers.
Furthermore, BNPL offers a strategic advantage for traditional financial institutions like banks. By integrating BNPL functionalities into their existing credit card offerings, banks can compete more effectively with emerging fintech players. This strategy has the potential to increase credit card usage and boost customer purchasing power. For instance, data suggests that U.S. banks could potentially elevate their customers’ credit limits by a significant margin if they embrace BNPL.
What Features Makes Jifiti BNPL Platfrom So Popular Among Its Users?
Jifiti’s BNPL platform has become a popular choice due to its interesting feature set that caters to both businesses and their customers. Let’s explore some of the key features that make Jifiti stand out:
1. High Approval Rates with Multi-Lender Network
Jifiti boasts a multi-lender network, which means businesses can offer BNPL options from a variety of banks and lenders. This significantly increases the chances of customer approval for BNPL financing. If a customer doesn’t get approved by one lender, Jifiti’s “waterfall” method automatically routes the application to the next lender in the network, maximizing approval rates and reducing cart abandonment.
2. Seamless White-Labeled Experience
Jifiti’s BNPL offering is entirely white-labeled. This means the BNPL experience is seamlessly integrated into the business’s existing checkout process, maintaining brand consistency throughout the customer journey. Customers won’t be redirected to a separate page for BNPL financing, keeping them engaged with the business’s brand.
3. Multiple BNPL Options
Jifiti goes beyond just standard installment plans. The platform offers a variety of BNPL options to cater to different customer needs. This includes features like:
- Installment Loans: Customers can split their purchases into fixed monthly installments.
- Line of Credit: Customers can access a revolving credit line for multiple purchases.
- Interest-free Split Pay: Customers can pay for their purchase in smaller installments without incurring interest charges.
- Pay in 3/4: Customers can split their purchase into a set number of smaller payments (typically 3 or 4) spread over a short period.
4. Global Reach and Omnichannel Support
Jifiti’s platform caters to businesses operating in international markets. It offers localized BNPL solutions that comply with local regulations. Additionally, Jifiti integrates seamlessly with various sales channels, be it online stores, physical stores, call centers, or even at-home sales. This omnichannel support ensures a smooth BNPL experience for customers no matter how they choose to interact with the business.
5. Transparency and Data Ownership
Jifiti provides businesses with a comprehensive reporting dashboard that offers complete transparency into their BNPL transactions. Businesses retain full ownership of customer data, allowing them to leverage valuable customer insights to improve their marketing strategies and overall customer experience.
How to Develop BNPL Platfrom like Jifiti?
The BNPL market has seen substantial growth in recent years, with companies like Jifiti leading the charge in providing seamless payment solutions. Businesses aiming to enter this lucrative market must navigate a series of crucial steps to develop a competitive BNPL platform.
1. Define Your Niche
Understanding the specific market segment your BNPL platform will serve is fundamental to its success. The BNPL sector is diverse, catering to both B2C and B2B transactions. Companies should start by identifying their audience, whether it’s general consumers looking for flexible payment options or businesses requiring streamlined financial solutions. Clearly defining your niche helps in tailoring the platform’s features and marketing strategies to meet the unique needs of your chosen audience.
2. Regulatory Compliance
In the BNPL industry, strict adherence to financial regulations is absolutely essential, and there’s no room for compromise. Platforms must adhere to laws concerning KYC, AML, and data privacy. Businesses should thoroughly research the regulatory environment in their target markets, ensuring that all legal requirements are met. This step is pretty important for building trust and avoiding potential legal pitfalls. Establishing a dedicated compliance team or consulting with legal experts can aid in navigating these complex regulations.
3. Provide White-Labeling Capabilities
For a BNPL platform to gain widespread adoption among merchants, it must offer robust white-labeling capabilities. This means merchants can integrate the BNPL solution into their existing brand seamlessly. Providing customizable options that align with different brand identities can significantly enhance the platform’s appeal. This not only simplifies integration but also allows merchants to maintain their brand’s look and feel, thereby fostering greater customer trust and satisfaction.
4. Technology Stack Selection
The foundation of your BNPL platform requires a strong tech stack. Consider backend languages like Python, Java, or JavaScript. Secure data storage is vital, so choose databases like PostgreSQL or MySQL. Scalability is key, so leverage cloud platforms like AWS, Google Cloud, or Microsoft Azure. Finally, develop APIs to seamlessly connect with merchants’ platforms and various lenders, ensuring smooth data exchange and functionality.
5. Core BNPL Functionalities
The core functionalities of your BNPL platform will handle user accounts for customers, merchants, and lenders. To determine loan eligibility, the system should be able to assess customer creditworthiness. For secure transactions, integrate with popular payment gateways. Finally, ensure the platform can handle various BNPL models, including installment loans and split payment options.
6. Robust Security Measures
Security is paramount when handling financial transactions. BNPL platforms must implement stringent security protocols to protect user data and financial information. Employing advanced encryption technologies, multi-factor authentication, and regular security audits can safeguard against potential breaches. Companies must stay vigilant and continuously update their security measures to address emerging threats, thereby ensuring user confidence in the platform’s safety.
7. Scalable Infrastructure
As the BNPL platform grows, it must be capable of handling increased transaction volumes and user numbers. Developing a scalable infrastructure ensures that the platform can accommodate growth without compromising performance. Utilizing cloud-based solutions can provide the necessary flexibility and scalability. Additionally, ensuring that the platform can easily integrate with other financial systems and technologies is crucial for maintaining smooth operations.
8. Built Partnerships and Collaborations
Building strategic partnerships is essential for expanding the reach of a BNPL platform. Collaborating with lenders, merchants, and other BNPL providers can enhance the platform’s value proposition. These partnerships can help in providing access to a broader customer base, diversify funding sources, and offer additional services. Establishing strong relationships with key stakeholders can drive growth and position the platform as a leader in the market.
9. Rigorous Testing and Deployment
Before launching a BNPL platform, it must undergo extensive testing to ensure functionality and compliance. This involves performing various types of testing, including integration tests, unit tests and even user acceptance tests. Identifying and resolving issues during this phase can prevent potential problems post-launch. A thorough deployment strategy, including phased rollouts and continuous monitoring, can ensure a smooth launch and minimize disruptions.
Cost of Developing BNPL App Development like Jifiti
| Phase | Cost Range | Details |
| 1. Research & Planning | $5,000 – $20,000+ | |
| Market Research | $2,000 – $10,000 | Cost depends on the depth and scope of research. Simple competitor analysis and basic market trends could be done for under $5,000. In-depth research can reach $10,000+. |
| Business Plan Development | $3,000 – $15,000 | The complexity and detail of the plan influence cost. A basic plan can be created in-house or with a consultant for $3,000-$5,000. Detailed financial projections might cost $10,000+. |
| Technical Feasibility Study | $0 – $5,000 | Internal assessment might be included in development team fees. Outsourcing for a detailed study could cost $3,000-$5,000. |
| 2. Front-End Development | $30,000 – $150,000+ | |
| User Interface (UI) Design | $5,000 – $50,000+ | Cost depends on complexity, desired level of polish, and a number of platforms (web, mobile). Simple UI for a single platform might cost $5,000-$10,000. Complex designs can reach $50,000+. |
| User Experience (UX) Design | $5,000 – $50,000+ | Similar cost considerations as UI design. A good UX design complements the UI. |
| Mobile App Development | Highly Variable | Consider the cost of native apps (iOS & Android) vs. cross-platform options (Flutter, React Native). Native apps offer better performance but are more expensive ($50,000+ per platform). |
| 3. Back-End Development | $75,000 – $200,000+ | |
| API Development | $20,000 – $75,000+ | Cost depends on the complexity and functionality of APIs. Simple APIs might cost $20,000-$30,000. Complex APIs can reach $75,000+. |
| Payment Processing Integration | $10,000 – $30,000+ | Cost depends on chosen payment gateway providers and transaction volume. Integration fees and ongoing transaction fees vary. |
| Risk Management System | $25,000 – $100,000+ | Complexity and desired level of sophistication influence cost. A basic creditworthiness assessment might cost $25,000-$35,000. Advanced fraud detection can be $100,000+. |
| Data Management & Security | $20,000 – $50,000+ | Cost depends on chosen security protocols and compliance requirements. Basic data encryption might cost $20,000-$30,000. Robust security measures can reach $50,000+. |
| 4. App Features | Highly Variable | |
| Omnichannel Support | +$30,000 – $75,000 | Integrating additional sales channels (physical stores, call centers) requires complex development. Cost depends on the chosen integration methods and the level of customization. |
| White-Labeled Solutions | +$15,000 – $30,000 | Building a white-labeled platform adds development time and cost for customization. |
| Variety of Loan Options | +$10,000 – $25,000 per option | Implementing each loan option (installments, lines of credit) requires additional development effort. The complexity of calculations and user interfaces affect cost. |
| Advanced Features | +$50,000+ | Budgeting tools, financial insights, or loyalty programs involve significant development. Cost depends on the features’ complexity, data integration needs, and UI/UX design. |
| 5. Testing & Deployment | $15,000 – $40,000+ | |
| Functionality Testing | $5,000 – $15,000 | Cost depends on the scope of testing and the number of platforms involved. |
| Security Testing | $5,000 – $10,000 | Penetration testing and vulnerability assessments are crucial for financial platforms. |
| Performance Testing | $5,000 – $15,000 | Ensures the platform can handle expected user load and transaction volume. |
| Deployment & Maintenance | $0 – $10,000+ | App store deployment fees might be minimal. Ongoing maintenance costs depend on the complexity of the platform and the chosen development team’s support model. |
Total Cost Range = $155,000 – $440,000+
While many development costs are common across various app types, building a BNPL platform like Jifiti introduces some unique considerations that can impact your budget. Here are four key factors that influence the cost specifically in BNPL app development:
1. Omnichannel Support
Unlike many apps, BNPL platforms like Jifiti need to function seamlessly across various sales channels. This means integrating with online stores, potentially physical stores with point-of-sale systems, and maybe even call center operations. Each additional channel requires development effort to ensure a smooth user experience, adding complexity and cost.
2. White-Labeled Solutions
Jifiti offers white-labeled solutions, where the platform seamlessly integrates with a merchant’s existing branding. This level of customization necessitates additional development work compared to a generic BNPL platform. Developers need to ensure the platform’s functionality aligns with the merchant’s branding and overall user experience, increasing development time and cost.
3. Complex Loan Option Management
BNPL platforms go beyond simple transactions. They offer various loan options like installments, lines of credit, or split payments. Each option requires development effort to handle calculations, risk assessments, and user interfaces specific to that loan type. The more complex or diverse the loan options offered, the higher the development cost.
4. Robust Risk Management Systems
Since BNPL involves credit extension, Jifiti-like platforms require a robust risk management system. This goes beyond standard security measures. Developers need to build features for creditworthiness assessment, fraud detection, and potential delinquency management. Implementing advanced risk management protocols with features like machine learning can significantly increase development costs.
What Tech Stacks are Required to Develop a BNPL Platform like Jifiti?
Developing a BNPL platform like Jifiti requires a sophisticated technology stack to ensure functionality, scalability, and security.
Businesses venturing into this field must carefully select the appropriate technologies to build a robust and efficient platform. Here are some critical tech stacks essential for developing a BNPL platform,
1. Front-End
For a seamless user experience, the BNPL platform’s front end needs a modern tech stack. Popular frameworks like React, Angular, or Vue.js allow for the building of responsive interfaces. These come with pre-built components and tools for a visually appealing and interactive experience. Additionally, JavaScript libraries like Moment.js and Chart.js further enhance functionality by simplifying tasks like data manipulation and data visualization. Finally, design tools like Figma or Adobe XD help create mockups and prototypes beforehand, ensuring an intuitive interface through user testing and iterative design.
2. API Gateway
An API Gateway acts as the single entry point for all interactions with the BNPL platform. It routes requests securely to various microservices within the platform and manages API keys and access control. This component is crucial for maintaining the integrity and security of the platform. Popular options include Apigee by Google Cloud, Amazon API Gateway, and Azure API Gateway by Microsoft.
3. Microservices Architecture
Adopting a microservices architecture allows businesses to break down the BNPL platform into independent, modular services. This approach provides greater scalability, flexibility, and faster development cycles. Each microservice can be developed, deployed, and scaled independently, enabling more efficient management of different platform components. Popular frameworks for microservices development include Spring Boot (Java), Dropwizard (Java), and Quarkus (Java/Kotlin).
4. Cloud-Based Infrastructure
Leveraging cloud platforms like AWS, Google Cloud Platform (GCP), or Microsoft Azure offers the scalability and reliability needed to handle a high volume of BNPL transactions. Cloud-based infrastructure allows businesses to adjust resources according to demand, ensuring a responsive and efficient platform. Cloud providers also offer essential services for data storage, computing, networking, and security, which are crucial for maintaining BNPL platform performance and integrity.
5. Database Solutions
A robust database is necessary to store user information, transaction data, loan details, and other critical information. Depending on the specific needs of the BNPL platform, businesses might consider relational databases like MySQL or PostgreSQL or NoSQL databases like MongoDB or Cassandra. Relational databases are well-suited for structured data and complex queries, whereas NoSQL databases provide flexibility and scalability for handling large volumes of unstructured data.
6. Payment Processing
Integrating secure payment processing APIs is essential for seamlessly handling BNPL transactions. Solutions like Stripe, Adyen, and PayPal offer robust APIs for managing payments, ensuring secure and efficient transaction processing. These payment processors provide features like multi-currency support, fraud detection, and compliance with global payment regulations, which are vital for the smooth operation of a BNPL platform.
7. Fraud Prevention Tools
Implementing fraud detection systems that leverage machine learning and AI is crucial for identifying and preventing fraudulent activities. Tools like Riskified and Sift offer advanced fraud prevention solutions that analyze transaction patterns, user behavior, and other indicators to detect potential fraud. These systems help protect the platform from fraudulent activities to ensure the security and integrity of financial transactions.
8. Credit Bureau Integration
Integrating with credit bureaus allows the BNPL platform to assess customer creditworthiness and make informed decisions about BNPL eligibility. This integration enables businesses to access credit reports and scores, providing valuable insights into a customer’s financial history and risk profile. Depending on the region, companies may need to integrate with local or international credit bureaus.
Conclusion
We can’t deny the fact that modern consumers expect more flexibility when it comes to making purchases. This explains the surging popularity of cutting-edge BNPL platforms in the market. It’s an exciting opportunity for fintech businesses to join the race and develop their own BNPL platforms. By seizing this opportunity now, businesses can not only cater to a specific audience but also build a strong, loyal brand following! Moreover, by giving features like detailed spending insights and rewards programs and offering cross-platform integration, companies can further enhance the appeal of these platforms, setting them apart in the market!
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FAQs
Q1: How much does it cost to develop a BNPL app?
The cost of developing a BNPL app varies depending on several key factors. Simpler versions with core functionalities can be built for less, while feature-rich apps with complex integrations will naturally cost more. The location of development teams, platform choices (native or cross-platform), and the extent of desired features all play a role in the total price tag. Partnering with an experienced fintech development company can not only optimize costs but also ensure a secure and scalable BNPL solution tailored to your specific needs.
Q2: How to develop a BNPL App?
Developing a BNPL app requires a multi-step approach. First, delve into market research and competitor analysis to understand the landscape. Then, design a user-centric app with a secure backend and integrate payment gateways. Developing features like credit checks, fraud prevention, and transparent billing is crucial. Rigorous testing and regulatory compliance ensure a smooth launch. Finally, prioritize user education and responsible lending practices to foster a sustainable BNPL ecosystem.
Q3: What is the architecture of BNPL technology?
A3: BNPL platforms often rely on modern, scalable architectures. Microservices, modular components that handle specific tasks, enable flexibility and rapid development. Event-driven architecture ensures smooth communication between services, triggering actions based on events like a purchase or on-time payment. APIs facilitate seamless integration with merchants and credit bureaus while robust security measures safeguard user data and financial transactions.
Q4: How do BNPL platforms make money?
A4: BNPL platforms generate revenue by playing middleman. They typically charge merchants a fee, often a little part of the transaction value plus a fixed sum, for offering BNPL as a payment option. This incentivizes merchants as it can boost sales by increasing customer purchasing power. Late fees from users who miss payments can also be a source of income, though responsible BNPL providers prioritize on-time payments through rigorous credit checks and clear communication.
