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BNP apps have revolutionized the ecosystem of finance and transactions, offering unparalleled convenience and flexibility. apps like LimePay are leading the charge with their innovative approach using blockchain. It enables users to effortlessly carry out transactions with fiat currency for decentralized applications, such as apps on the Ethereum blockchain.
In this comprehensive guide, we’ll take you through the entire process of developing a BNPL app like LimePay, from initial planning to launch. We’ll delve into the essential features your app must have to stand out in the competitive market and provide a detailed cost estimation to help you budget effectively.
Whether you’re a seasoned entrepreneur or a business aiming to innovate, this guide will empower you with the insights needed to turn your vision into reality.
What is the DeFi BNPL App?
Have you ever loved an item online but hesitated to buy it because you didn’t have the cash upfront? Traditional credit cards can come with high fees and hidden charges. This is where the world of DeFi (Decentralized Finance) and BNPL (Buy Now, Pay Later) collide to create a game-changing financial tool: the DeFi BNPL app.
DeFi BNPL apps let you use your existing cryptocurrency holdings to split the cost of a purchase into installments. Unlike credit cards, no credit check is needed. Instead, your crypto acts as collateral for the loan. This means you can keep your crypto while making smaller payments over time.
DeFi BNPL operates on blockchain technology, a secure and transparent system that removes the need for banks. It’s a new technology with advantages like financial inclusion and empowering crypto users, but it’s important to be aware of risks like crypto price volatility and evolving regulations.
Key Market Trends For BNPL
Projections indicate it will soar to around USD 76.46 billion by 2033, with an impressive compound annual growth rate (CAGR) of 17.06% during the period from 2024 to 2033. The adoption of interest-free installment plans on e-commerce platforms largely drives the market’s expansion.
In 2023, North America achieved a significant revenue share within the BNPL market. Specifically, the U.S. BNPL market was estimated to be worth USD 3.38 billion. The strong presence of major credit card companies and fintech firms has increased the market’s growth in this region. Credit cards remain the predominant payment method among Americans. As the number of online shoppers increases, many businesses in the region have begun offering BNPL, EMI, or credit card payment options to cater to this growing consumer base.
Understanding BNPL Apps And Their Rising Demand
BNPL stands for Buy Now, Pay Later. These apps work like a short-term loan for your purchases. You can buy something today and spread out the cost over a few weeks or months, usually without interest, if you meet the repayment terms. Several factors add to the rising demand for BNPL apps:
01 Convenience and Flexibility
BNPL apps offer a more convenient way to manage finances than traditional credit cards. Unlike credit cards with monthly statements and due dates, BNPL transactions are typically integrated directly into the shopping experience. Users can easily track their spending and upcoming payments within the app, often with real-time updates. This transparency allows for better financial control and budgeting.
02 Budgeting Tool
BNPL can be a useful tool for budgeting, allowing users to spread out the cost of larger purchases without breaking the bank. This can be really helpful for unexpected expenses or seasonal shopping sprees. By dividing the cost into smaller installments, BNPL apps can make budgeting more manageable and help users avoid impulse purchases that could strain their finances.
03 Improved Access to Credit
For younger generations or those with limited credit history, BNPL apps can provide an alternative to traditional credit cards. Unlike credit card applications, which can involve a complex approval process and credit score checks, BNPL apps often have less stringent eligibility requirements. This can be really useful for young adults who are just starting to grow their credit or for individuals with limited credit history.
04 Increased E-commerce Adoption
The growth of online shopping has increased the demand for BNPL options. Traditional credit card information can be cumbersome to enter online, and some consumers hesitate to store their credit card details on various websites. BNPL apps offer a more streamlined and secure way to pay for online purchases. With just a few clicks within the BNPL app, users can complete their online transactions without having to enter their credit card information each time.
05 Targeted Marketing
Many BNPL companies heavily target millennials and Gen Z with appealing marketing campaigns that highlight the convenience and ease of their services. This demographic is known for being tech-savvy and embracing new financial technologies. BNPL apps cater to their preference for mobile-first financial solutions and offer a user-friendly experience that integrates seamlessly with their digital lifestyle.
Why Should You Consider Developing A DeFi BNPL App?
The US market is witnessing a surge in the adoption of Buy Now, Pay Later (BNPL). Consumers crave convenient and flexible payment options, and BNPL apps are delivering just that.
01 Capture a Growing Market
As mentioned earlier, The US BNPL market is expected to reach a staggering USD 76.46 billion by 2033. Be an early mover and capture a loyal customer base before the market gets saturated. Early adopters in the DeFi space have the potential to build significant brand recognition and establish themselves as leaders in this innovative financial technology.
02 Stand Out from the Crowd
Differentiate yourself from traditional BNPL providers by offering a unique, tech-forward solution built on DeFi. Attract customers seeking secure and transparent financial services. DeFi BNPL apps can appeal to a wider demographic by providing an alternative to traditional credit cards, which can be difficult to obtain for young adults or those with limited credit history.
03 Reduced Processing Fees
DeFi eliminates the need for intermediaries, potentially leading to lower transaction fees for both you and your customers. This can translate to increased profitability and cost savings. By reducing processing fees, you can offer your customers more competitive rates and enhance their overall BNPL experience.
04 Enhanced Security
Blockchain technology ensures secure and transparent transactions, building trust with customers concerned about data privacy and fraud. DeFi BNPL apps can leverage the power of blockchain to provide a tamper-proof record of transactions, reducing the risk of fraud and data breaches. This can be a major advantage in today’s digital age, where consumers are very concerned about data security.
05 Global Reach
DeFi’s borderless nature allows you to potentially expand your customer base beyond the US, reaching international markets interested in BNPL options. Unlike traditional BNPL solutions that geographic restrictions may limit, DeFi BNPL apps can cater to a global audience. This creates new chances for businesses to reach a wider customer base and scale their operations.
What Makes the LimePay Business Model Unique?
The LimePay business model stands out due to several unique features and strategies:
01 Seamless Integration and White-Label Solutions
LimePay’s business model excels in its seamless integration with existing e-commerce platforms. This allows merchants to add BNPL options to their checkout processes without major changes, enhancing the customer experience and increasing conversion rates.
Additionally, LimePay offers white-label solutions, enabling businesses to provide BNPL services under their brand. This helps build a consistent brand experience for their customers, unlike many other BNPL providers that operate under their branding.
02 Flexible Payment Plans and Real-Time Approvals
The app stands out with its flexible payment plans, which can be personalized to meet the needs of different customers. This attracts a wider range of consumers and boosts customer satisfaction. It also offers real-time approval processes using advanced algorithms and data analytics. This ensures a smooth and quick checkout experience, reducing cart abandonment rates and providing a hassle-free shopping experience.
03 Merchant Benefits and Interest-Free Installments
LimePay offers many benefits to merchants, including tools to manage and track payments, which reduces the risk of fraud and defaults. The platform offers insights and advanced analytics to help businesses understand customer behavior and optimize sales strategies.
Another appealing aspect is the availability of interest-free installment plans, making LimePay an attractive option for customers who want to spread the cost of their purchases without extra charges.
04 Customer-Centric Approach and Advanced Risk Management
It focuses on providing a positive consumer experience through transparent terms, easy-to-understand payment plans, and responsive customer support. This builds trust and loyalty among users. LimePay also uses advanced risk assessment tools to evaluate customer creditworthiness, minimizing risks for merchants and ensuring a high rate of successful transactions.
05 Scalable Infrastructure and Global Reach
LimePay’s scalable infrastructure is designed to handle varying levels of demand, making it suitable for businesses of all sizes. Whether serving small businesses or large enterprises, LimePay can scale its services to meet their needs. Its ambition to serve a global market sets it apart from many BNPL providers that focus on specific regions. This broad reach allows merchants to offer BNPL services to a mixed and global customer base, enhancing their market presence.
Key Features To Consider To Develop A DeFi BNPL App Like LimePay
LimePay’s user-friendly approach to DeFi payments has paved the way for a new wave of financial applications. Here are the key features to consider when developing your own DeFi Buy Now, Pay Later (BNPL) app, going beyond the initial list and elaborating on their importance:
01 User-Friendly Interface (UI) and User Experience (UX)
First and foremost, make it as easy and intuitive as possible for users to navigate your app. A clear and simple UI is crucial for attracting a broad audience, especially those unfamiliar with DeFi. Think icons that are universally understood have clear and concise language and a layout that facilitates easy navigation. Onboarding should be a smooth process, guiding users through setting up their accounts and effortlessly making their first BNPL transaction.
02 Secure User Authentication
Moving on to security, implement robust security measures to protect user data and financial information. Multi-factor authentication (MFA) and secure login protocols like fingerprint or facial recognition are essential. Consider leveraging blockchain’s inherent security features to create a tamper-proof record of transactions and user data.
03 Flexible Payment Plans
When it comes to payment options, provide a variety of BNPL options to cater to different user needs. Allow users to choose the number of installments (e.g., 3, 6, 12) and repayment schedule (e.g., bi-weekly, monthly) that best suits their financial situation. This flexibility is a core strength of BNPL apps and can be a key differentiator for your offering.
04 Real-Time Credit Assessment
Additionally, consider incorporating a real-time creditworthiness assessment to determine eligibility and set credit limits. This can be balanced with user privacy considerations by employing permissioned blockchain networks or utilizing privacy-preserving cryptographic techniques. A risk-based approach can help you manage defaults while ensuring responsible lending practices.
05 Blockchain Integration
The foundation of your app lies in blockchain integration. Integrate with a secure and scalable blockchain network to facilitate transparent and immutable transactions. This builds trust and fosters a secure financial ecosystem. Explore options like Ethereum, Polygon, or Solana, each with its edge in terms of transaction speed, fees, and security.
06 Smart Contracts
Building upon the blockchain integration, utilize smart contracts to automate loan agreements, repayments, and dispute resolution. This can streamline processes, reduce costs, and ensure fairness for both users and merchants. Smart contracts can also be programmed to add late payment penalties or integrate with credit reporting agencies to incentivize responsible borrowing.
07 Merchant Integration
To expand your user base, develop a seamless integration process for merchants to accept BNPL payments through your app. This expands your user base and provides merchants with a wider customer reach. Offer competitive transaction fees and real-time settlement options to attract merchants and make your BNPL solution attractive. Consider loyalty programs or data analytics tools to incentivize merchant participation further.
08 Comprehensive Dashboard
Empower both users and merchants by providing them with clear and informative dashboards. Users should be able to track their BNPL history and upcoming payments, manage their accounts effectively, and access educational resources on responsible BNPL usage. Merchants should be able to monitor transactions, manage settlements, gain insights into customer behavior, and track key standards like conversion rates and average order value.
09 Risk Management Tools
To ensure the security of your platform, implement robust risk management tools to identify and mitigate potential fraud and defaults. This can involve transaction monitoring, creditworthiness checks (if applicable), collaboration with fraud prevention services, and employing machine learning algorithms to detect suspicious activity.
10 Regulatory Compliance
Operating within the legal framework is crucial. Ensure your DeFi BNPL app adheres to all relevant regulations and Anti-Money Laundering (AML) / Know Your Customer (KYC) standards. Staying compliant fosters trust, avoids legal hurdles, and demonstrates your commitment to user protection. Closely monitor evolving regulations in the DeFi space and proactively adapt your app to ensure continued compliance.
Steps To Develop A DeFi BNPL App Like LimePay
Here’s a comprehensive guide to creating a groundbreaking DeFi Buy Now, Pay Later (BNPL) app, taking you from an initial concept to a thriving platform.
01 Defining Your App’s Core Functionality
The first step is to define your app’s core functionality clearly. This involves identifying your target audience. Are they crypto-curious millennials or DeFi veterans? Understanding their needs and financial behaviors is crucial for a successful app. You’ll also need to define your Unique Selling Proposition (USP). What makes your BNPL app stand out? Will you offer the fastest transaction speeds and the most flexible payment plans, or will you cater to a specific niche market?
02 Designing a Frictionless User Experience (UX)
Once you have a clear understanding of your target audience and USP, it’s time to design a frictionless user experience (UX). Here, prioritizing a clean and user-friendly interface that fosters effortless navigation is paramount. Mobile-first design is a must in today’s mobile-centric world. Streamline the account creation process to get users started quickly. Consider social login options or minimal signup steps. Finally, tutorials or FAQs should be integrated to explain DeFi concepts and BNPL best practices, empowering users and fostering trust.
03 Securing User Authentication and Data Management
Security is of utmost importance in the world of finance, especially when dealing with DeFi. To ensure user trust and data protection, you’ll need to implement robust security measures. This includes multi-factor authentication (MFA), secure login protocols, and leveraging blockchain’s inherent security for tamper-proof data storage. Additionally, adhering to all relevant KYC/AML standards and staying updated on evolving DeFi regulations is crucial to ensure user protection and legal compliance.
04 Developing Core App Features
Now it’s time to delve into the core app features that will power your BNPL platform. The foundation lies in real-time integration with a secure blockchain network. Choose a reputable blockchain network (e.g., Ethereum, Polygon, Solana) that aligns with your app’s needs in terms of speed, scalability, and transaction fees. Next, utilize smart contracts to automate loan agreements, repayments, and dispute resolution, ensuring transparency and efficiency. Finally, it offers a variety of installment options and repayment schedules to cater to diverse user needs. Consider bi-weekly or monthly repayment options with clear terms and conditions.
05 Integrating with Key Players
A successful BNPL app thrives on seamless integration with key players in the financial ecosystem. Develop an easy-to-use API or SDK for merchants to integrate BNPL payments into their existing platforms, expanding your user base and offering them a wider customer reach. Partnering with secure payment gateways will facilitate smooth fiat-to-crypto conversions and ensure timely settlements for both users and merchants.
06 Implementing Robust Risk Management Tools
Mitigating risk is vital for the long-term success of your BNPL app. Employ AI-powered fraud detection systems and transaction monitoring tools to safeguard your platform from fraudulent activities. Additionally, explore options for integrating a real-time creditworthiness assessment to determine eligibility and set credit limits (while maintaining user privacy).
07 Testing, Deployment, and Refinement
Before launching your app to the world, rigorous testing is essential. Conduct thorough security testing, performance testing, and user acceptance testing to spot and address any potential issues. Choose a reliable app deployment platform and establish a plan for ongoing maintenance, bug fixes, and feature updates. Finally, continuously monitor user behavior and app performance metrics. Leverage data insights to refine your app and optimize features based on user needs, ensuring a consistently exceptional user experience.
How Much Does It Cost To Develop A DeFi BNPL App Like LimePay?
Developing a DeFi BNPL app like LimePay involves various costs depending on the complexity and features included in the app. Here’s a breakdown of the estimated costs:
| Feature/Service | Basic BNPL App ($50,000 – $100,000) | Medium Complexity App ($100,000 – $200,000) | Highly Complex App ($200,000+) |
| User-Friendly Interface | $5,000 – $10,000 | $10,000 – $20,000 | $20,000 – $30,000 |
| Secure User Authentication | $5,000 – $10,000 | $10,000 – $20,000 | $20,000 – $30,000 |
| Flexible Payment Plans | $5,000 – $10,000 | $10,000 – $20,000 | $20,000 – $30,000 |
| Real-Time Credit Assessment | $10,000 – $20,000 | $20,000 – $30,000 | $30,000 – $40,000 |
| Blockchain Integration | N/A | $20,000 – $30,000 | $40,000 – $50,000 |
| Smart Contracts | N/A | $20,000 – $30,000 | $30,000 – $40,000 |
| Merchant Integration | $5,000 – $10,000 | $10,000 – $20,000 | $20,000 – $30,000 |
| Comprehensive Dashboard | $5,000 – $10,000 | $10,000 – $20,000 | $20,000 – $30,000 |
| Risk Management Tools | N/A | $10,000 – $20,000 | $20,000 – $30,000 |
| Regulatory Compliance | $5,000 – $10,000 | $10,000 – $20,000 | $20,000 – $30,000 |
| Multi-Currency Support | N/A | $5,000 – $10,000 | $10,000 – $20,000 |
| Maintenance and Updates (per year) | $5,000 – $10,000 | $10,000 – $20,000 | $20,000 – $30,000 |
| Total Estimated Cost | $50,000 – $100,000 | $100,000 – $200,000 | $200,000+ |
Basic BNPL App
Cost: $50,000 – $100,000
A basic BNPL app typically includes essential features such as a user-friendly interface, secure user authentication, flexible payment plans, and real-time credit assessment. This version would provide the core functionality needed to offer BNPL services without any advanced features or extensive customizations.
Medium Complexity App
Cost: $100,000 – $200,000
A medium-complexity app would include all the features of a basic app along with additional advanced features like blockchain integration, smart contracts, and a comprehensive dashboard for both users and merchants. This version would offer a more robust and secure experience, with enhanced functionalities to cater to a broader audience.
Highly Complex App
Cost: $200,000+
A highly complex BNPL app includes all the features of a medium complexity app plus additional bells and whistles. These could include advanced risk management tools, extensive merchant integration capabilities, multi-currency support, and extensive regulatory compliance features. This version is designed to cater to large enterprises with extensive needs, offering the highest level of security, functionality, and user experience.
Cost Affecting Factors
App Complexity
The more features and functionalities your app offers, the more intricate it becomes to develop, translating directly to higher development costs. A basic BNPL app with core functionalities like payments and account management will be more affordable compared to one with advanced features like real-time credit assessment, a complex loyalty program, or gamified elements.
Development Team Location
Geographic location plays a crucial role in determining developer rates. Hiring developers in North America, particularly in the USA and Western Europe, generally involves higher costs compared to hiring developers in Asia or Eastern Europe. However, USA-based developers, such as at Idea Usher, justify these costs with their extensive experience and proven expertise. This presents an opportunity for strategic team building that prioritizes quality and efficiency.
Team Composition
The size and expertise of the development team will also influence the overall cost. You’ll need to assemble a team with proficiency in blockchain technology, smart contract development, mobile app development (considering both iOS and Android), and robust security practices. Additional specialists like UI/UX designers and back-end engineers might be necessary, depending on the complexity of your app.
Development Approach
Deciding between an in-house development team or outsourcing to a DeFi development agency presents a trade-off between control and cost. An in-house team offers more control over the development process but can be more costly due to salaries, infrastructure, and overhead costs. Outsourcing can be a cost-effective option, but careful vetting of potential partners is crucial to ensure quality and expertise in DeFi development.
How Do BNPL Apps Like LimePay Generate Revenue?
BNPL apps have established a unique profit model that benefits users, merchants, and the platform itself. Here’s a deeper dive into the key revenue streams that power the BNPL world:
01 Merchant Fees
The foundation of most BNPL revenue models lies in merchant fees. These fees are usually a percentage of the transaction value, often ranging from 2% to 7%. This incentivizes merchants to offer BNPL as a payment option, as it can increase their sales volume by attracting new customers who might not be comfortable using traditional credit cards or by encouraging larger purchases that can be broken down into smaller, more manageable installments. Some BNPL providers may also have a fixed fee structure or a combination of fixed and variable fees, depending on the specific transaction details.
02 Interchange Fees
In some instances, BNPL apps leverage existing payment networks like Visa or Mastercard to process transactions. This can be particularly useful for wider user adoption and global reach. When a user makes a BNPL purchase using a credit card linked to app, the merchant still pays interchange fees to the network (similar to any credit card transaction).
The BNPL app, acting as a facilitator, might then receive a portion of this interchange fee for handling the BNPL-specific aspects of the transaction. This revenue stream comes from something other than the user directly but highlights the collaborative nature of the BNPL ecosystem.
03 Late Payment Fees
BNPL apps typically function on a transparent fee structure, offering a grace period for users to repay their installments without any additional charges. This encourages responsible financial behavior and repayment discipline. However, if a user misses a payment or incurs a late payment, the app may levy late fees. These fees serve as a restraint against delinquency and contribute to the app’s revenue stream. It’s important to note that these fees should be clearly outlined in the user agreement and adhere to fair lending practices.
04 Interest on Extended Financing
While core BNPL functionality revolves around short-term, interest-free installments, some apps might offer extended repayment plans for larger purchases. These extended plans may come with a low interest rate, generating additional revenue for the platform. However, transparency is paramount. BNPL providers that choose this approach must ensure clear communication of interest rates and avoid practices that could be seen as predatory lending.
05 Premium Features
Some BNPL apps might explore premium features that are accessible through a subscription fee. These features include expedited loan approvals, increased credit limits, or loyalty rewards programs that incentivize frequent use of the platform. Offering these premium features allows for revenue diversification and caters to users who require a more robust BNPL experience.
Latest Trends In DeFi BNPL App Development
Here are five cutting-edge trends that are redefining the user experience and pushing the boundaries of this innovative financial technology:
01 Focus on Gamification
Traditional financial apps can feel impersonal and daunting. DeFi BNPL apps are incorporating gamification elements to make financial management engaging and rewarding. This might involve earning points for timely repayments, unlocking badges to achieve financial goals, or offering referral rewards to incentivize user growth. By gamifying the experience, BNPL apps can promote responsible financial behavior and boost user engagement.
02 AI-powered Creditworthiness Assessment
Traditionally, creditworthiness assessments have relied heavily on credit scores and financial history. However, this can exclude a significant portion of the population, particularly those new to the credit system or with limited traditional financial footprints. DeFi BNPL apps are exploring the potential of AI-powered creditworthiness assessments. These AI models can analyze a wider range of data points, including a user’s DeFi transaction history and on-chain behavior, to create a more holistic risk profile. This can promote financial inclusion by offering BNPL options to a broader user base.
03 Social and Community Features
Building a strong user community fosters trust and loyalty within the BNPL ecosystem. DeFi BNPL apps integrate social features such as forums, chat rooms, and peer-to-peer recommendations. This allows users to interact, share experiences, and learn from each other. Additionally, integrating social media login options and referral programs can streamline onboarding and encourage user growth.
04 Interoperability with Traditional Finance
While DeFi offers unique advantages, complete financial disconnection from traditional systems isn’t always practical. DeFi BNPL apps are exploring ways to bridge the gap by enabling users to connect their traditional bank accounts or credit cards to their DeFi wallets. This enables users to smoothly transfer funds between DeFi and traditional finance, potentially increasing their purchasing power and flexibility within the BNPL ecosystem.
05 Emphasis on Decentralized Governance (DAO)
Decentralization is a core principle of DeFi. Some DeFi BNPL apps are exploring the implementation of Decentralized Autonomous Organizations (DAOs) to govern the platform. DAO frameworks allow token holders to participate in decision-making processes, potentially shaping the future direction of the BNPL app and its features. This fosters a sense of community ownership and shared responsibility for the platform’s success.
Conclusion
As the Buy Now, Pay Later industry continues to expand at a rapid pace, developing a DeFi BNPL app like LimePay presents a golden opportunity. By using blockchain technology, flexible payment options, and seamless integration, you can provide a secure and user-friendly payment solution that meets the growing demands of digital-savvy consumers.
Investing in a DeFi BNPL app not only enhances the customer experience but also opens up new revenue streams and builds customer loyalty. As the market is projected to grow largely in the coming years, positioning your business with a cutting-edge BNPL solution can drive substantial growth and competitive advantage.
Now is the time to act. By using the information and strategies outlined in this guide, you can start on the journey of developing a DeFi BNPL app that meets the evolving needs of today’s digital consumers.
How Can Idea Usher Help With BNPL App Development?
At Idea Usher, we specialize in transforming innovative ideas into robust, market-ready applications. Our team of expert developers, designers, & strategists has the latest tools and experience to bring your vision of a DeFi BNPL app like LimePay to life. With a keen understanding of the fintech industry and a proven record in app development, we provide end-to-end solutions customized to your business needs.
From the initial phase and planning to design, development and deployment, we ensure every aspect of your BNPL app is meticulously crafted to deliver an exceptional user experience. Our expertise in blockchain technology, secure user authentication, and real-time credit assessment guarantees that your app will be both secure and scalable.
Ready to revolutionize your business with a state-of-the-art BNPL app?
Contact Idea Usher today to discuss your project and discover how we can help you achieve your goals. Let’s build the future of finance together!
developers, with combined 50000+ coding hours experience
FAQs
How much does it cost to develop a BNPL app?
The cost to develop a BNPL app varies widely based on its complexity and features. A basic BNPL app might cost between $50,000 and $100,000, while a medium-complexity app with advanced features can range from $100,000 to $200,000. A highly complex app with all the bells and whistles typically costs $200,000 or more.
How do I create a buy now, pay later app?
Creating a BNPL app involves several steps: researching market needs, defining key features, choosing the right technology stack, and designing a user-friendly interface. You also need to develop secure user authentication, real-time credit assessment, and flexible payment options. Finally, blockchain technology should be integrated for transparency and to ensure compliance with financial regulations.
Is BNPL profitable?
Yes, BNPL can be highly profitable. It attracts a large customer base by offering flexible payment options, which can lead to enhanced sales and higher customer retention. Additionally, BNPL providers often earn revenue through merchant fees, late fees, and interest on extended payment plans.
How do BNPL platforms make money?
BNPL platforms primarily make money through merchant fees, which are a percentage of each transaction processed through the BNPL service. They also generate revenue from late payment fees charged to consumers who miss their payment deadlines and interest on certain payment plans. Some platforms may also offer premium services for additional revenue.
