(+971) 8007 4267
(+91) 946 340 7140
(+1) 628 432 4305
These days, consumers are constantly looking for flexible payments while purchasing their everyday essentials. That’s why we are observing a rapid adoption of several BNPL apps like Zebit. In fact, Zebit already has a massive 10 million user base who use this app on a daily basis. And according to experts, this number is only going to go up!
By developing a similar BNPL app, fintech businesses can capitalize on this trend. So, in this blog, we’re going to discuss everything you need to know to get you started on this journey!
What is the Zebit App?
The Zebit is a BNPL app for people with limited credit history. It allows users to shop at partnered brands, get approved for a spending limit of up to $1,500 with no credit check, and pay for their purchases over six months with no hidden fees. Users can manage their accounts and track payments all within the app.
What Makes the Zebit App Unique?
The Zebit app stands out for its focus on financial inclusion and responsible spending. Unlike traditional credit cards that can trap users in high-interest cycles, Zebit offers a transparent and accessible alternative. Shoppers with limited credit history or those looking to avoid interest charges can benefit from Zebit’s core feature called SplitIt.
It allows them to split purchases into interest-free installments over a set period. This empowers users to manage their budget effectively and avoid debt spirals. Additionally, the Zebit app prioritizes user experience with features like Spending Limit Tracker and My Orders, which provide clear breakdowns of payment schedules. This financial clarity fosters responsible credit behavior and builds trust with users.
How Zebit App Generates Revenue?
Zebit, like many BNPL platforms, thrives on a two-pronged revenue strategy – partnering with merchants and catering to consumers.
Merchants
For merchants, Zebit acts as a gateway to boost sales. By offering BNPL as a payment option, Zebit allows customers to split purchases into installments, making expensive items more accessible. This can tempt customers to spend more, potentially increasing the merchant’s average order value. In return for facilitating these transactions, Zebit typically charges merchants a fee per transaction, often hovering around a percentage (like 2-5%) of the purchase price. This fee becomes a steady revenue stream for Zebit.
Users
Zebit caters to those seeking a BNPL option with a soft credit check that safeguards their credit score. Once approved, users are assigned a spending limit ranging from $750 to $1,500. They can then shop directly through Zebit Market’s extensive catalog of over 1,500 items or utilize the service for gift cards at major retailers. Notably, Zebit avoids hidden fees. However, there is a required down payment (between 25% and 35%) on purchases, with the remaining balance split into interest-free installments spread over 6 to 26 weeks. It’s important to note that each purchase requires Zebit’s approval.
Key Market Takeaways for BNPL Apps
Source: Fortunebusinessinsights
Several factors are fueling this BNPL boom. Firstly, younger demographics, particularly comfortable with digital transactions, are increasingly adopting BNPL services. Secondly, the ease and convenience offered by BNPL apps, which streamline the checkout process and often require minimal credit checks, resonate with today’s fast-paced consumer. Finally, BNPL can be a strategic tool for businesses to boost sales. By offering customers flexible payment options, BNPL providers can incentivize purchases and encourage larger basket sizes, ultimately benefiting both businesses and consumers.
This trend is further solidified by recent news and partnerships. For instance, Amazon Business recently expanded its BNPL offerings through a collaboration with Affirm, allowing business customers to split purchases over time. Additionally, tech giant Apple announced partnerships with established BNPL players Affirm and Citi to offer alternative payment options within its ecosystem, replacing its shelved “Apple Pay Later” feature. These developments indicate growing recognition of the BNPL market’s potential and a strategic shift by major players to capitalize on this space.
What Features Make Zebit So Popular Among Its Users?
These days, managing finances and building credit can be challenging. The Zebit app offers a unique solution for many shoppers, making it a popular destination for those looking for flexible payment options. Here are some key features that contribute to Zebit’s appeal:
1. Shop Now, Pay Later with Zebit Spending Limit
Unlike traditional credit cards with hidden fees and interest rates, Zebit allows users to shop from a curated selection of brands and pay for their purchases over time using their approved Zebit Spending Limit. The total price you see at checkout is the final price, with no surprise charges lurking around the corner. This transparency builds trust and empowers users to make informed purchasing decisions.
2. Credit Check-Free Approval
For those having limited credit history or lower credit scores, Zebit provides a welcome alternative. The app’s approval process bypasses traditional credit checks, relying instead on a soft inquiry that doesn’t impact your credit score. This feature is particularly attractive for young adults or individuals rebuilding their credit.
3. Flexible Payment Options
Gone are the days of scrambling to pay off a large purchase in one go. Zebit provides users with the convenience of spreading their payments over six manageable installments. Additionally, users can choose a payment schedule that aligns with their pay cycle through the My Payment Schedule feature, be it weekly, bi-weekly, or monthly. This flexibility empowers app users to stay on top of their finances and avoid the burden of debt.
4. Diverse Zebit Marketplace
Zebit boasts a curated marketplace filled with a variety of popular brands and a wide range of products. From the latest electronics and appliances to essential homeware and trendy jewelry, users can find a wide range of items to suit their requirements and desires. The constant addition of new products ensures there’s always something fresh to discover on the Zebit Marketplace.
5. Convenient Account Management
The Zebit app puts the power of managing finances right at users’ fingertips. Within the app, users can easily track their current and past orders through My Orders and review their payment history and upcoming due dates. Additionally, users can view their spending limit and potentially request an increase through My Zebit as needed. This level of control and easy access to information fosters a sense of financial well-being and empowers users to stay on budget.
6. Fast and Easy Application Process
The Zebit application process is designed to be quick and hassle-free. Unlike lengthy credit card applications, the Zebit app allows users to get started quickly without the burden of a hard credit check. This streamlined approach makes it easier for app users to access the benefits of Zebit’s unique shopping experience.
How to Develop a BNPL App Like Zebit?
The BNPL market is booming, offering a convenient way for customers to spread out payments for purchases. Companies like Zebit have carved a niche by catering to those with limited credit history. If you’re considering developing a BNPL app like Zebit, here’s a roadmap to guide you:
1. Market Research and Competitive Analysis
Conducting thorough market research is quite important for understanding the BNPL landscape. Analyzing existing players like Zebit, Afterpay, and Klarna helps identify their strengths and weaknesses. Identifying the target audience is essential. Unlike traditional BNPL options focused on good credit scores, Zebit caters to a different segment. Understanding the ideal customer’s financial habits and needs will guide the development process.
2. Business Model and Revenue Strategy
Defining the revenue model is a key step. Will the platform charge merchants a fee for using the service? Will there be interest on loans or late payment penalties, ensuring compliance with regulations? Developing a clear value proposition for both businesses (retailers) and consumers is important. For businesses, highlighting how the BNPL option can increase sales conversions is beneficial. For consumers, emphasizing the convenience and potential for building a credit history is appealing.
3. Regulatory Compliance and Licensing
BNPL services are subject to financial regulations, so it’s crucial to partner with legal and compliance experts to ensure that the application complies with all relevant regulations in the target market. Obtaining the required licenses to operate as a BNPL provider is also a critical part of this process. While the process may vary depending on the location, adherence to compliance is non-negotiable for business operations.
4. Technology Stack Selection
Choosing a robust technology stack that can handle secure financial transactions, data management, and scalability for a growing user base is critical. Considering factors like security, scalability, and ease of integration with other systems when selecting development tools will ensure a solid foundation for the app. Behavioral design should be incorporated, with features that encourage responsible credit usage and on-time payments, possibly involving nudges, reminders, and gamification elements.
5. App Design and Development
Creating an intuitive interface is essential for the success of any app. Investing in UI/UX design can greatly enhance user satisfaction by ensuring a seamless and easy-to-navigate experience. The development phase should focus on building the core functionalities, such as the BNPL feature, user account management, and transaction processing. Regular testing throughout the development process will help identify and fix any issues early on.
6. Alternative Credit Scoring System
Developing a creditworthiness assessment system that goes beyond traditional credit scores is an innovative approach. Integrating alternative data sources like income verification services or shopping habits to assess eligibility for BNPL loans responsibly can expand the potential user base. This system should be designed to provide fair and accurate assessments, catering to those with limited credit history.
7. Seamless Merchant Integrations
Partnering with retailers to integrate the BNPL service into their checkout process is crucial. This may involve creating APIs to enable seamless communication and data exchange between the platform and retailer systems. Ensuring a seamless integration will provide a better user experience for both consumers and businesses.
8. Security and Scalability
It is also important to prioritize strong security measures to protect data and financial transactions. Implementing data encryption, user authentication protocols, and fraud prevention systems will provide protection for both users and the business. It is also important to build a scalable infrastructure that can efficiently handle a growing user base and transaction volume to ensure that the app can expand along with market demand.
9. Launch and Marketing Strategy
The final step is to develop a comprehensive launch strategy to introduce the BNPL app to the target audience. Partnering with relevant businesses and influencers can help reach potential users. Continuously monitoring and refining marketing efforts based on user data and market trends will optimize the business’s reach and engagement. Ensuring a successful launch sets the foundation for long-term growth and success in the competitive BNPL market.
Cost of Developing a BNPL App like Zebit
| Stage | Activity | Estimated Cost |
| Research & Planning | Market Analysis | $5,000 – $10,000 |
| Feature Prioritization | $2,000 – $5,000 | |
| Tech Stack Selection | $3,000 – $5,000 | |
| Subtotal | $10,000 – $20,000 | |
| Design & UI | UI/UX Design | $10,000 – $25,000 |
| User Interface (UI) Development | $5,000 – $15,000 | |
| Subtotal | $15,000 – $40,000 | |
| Backend Development | API Integrations | $10,000 – $20,000 |
| Security Features | $15,000 – $30,000 | |
| Database Management | $5,000 – $10,000 | |
| Payment Processing | $10,000 – $40,000 | |
| Subtotal | $40,000 – $100,000 | |
| App Features | Basic Shopping Functionality | $10,000 – $30,000 |
| Order Tracking | $5,000 – $15,000 | |
| Advanced Features: | ||
| – Credit Limit Increase Options | $10,000 – $20,000 | |
| – Budgeting Tools | $15,000 – $30,000 | |
| – Loyalty Programs | $10,000 – $25,000 | |
| Subtotal | Highly Variable | |
| Testing & Deployment | QA Testing | $5,000 – $10,000 |
| App Store Deployment | $2,500 – $5,000 | |
| Subtotal | $7,500 – $15,000 |
Total Estimated Cost Range: $72,500 – $175,000
Apart from the core costs mentioned above, several other factors can significantly impact the overall development cost of a BNPL app.
Creditworthiness Assessment
Unlike traditional financial institutions that rely on credit checks, BNPL apps like Zebit need to develop alternative methods to assess a user’s creditworthiness. This might involve leveraging alternative data sources, machine learning models, or partnering with credit bureaus (if applicable) to create a unique risk assessment system. Implementing such a system adds complexity and incurs development costs.
Partnership with Retailers or Marketplace Integration
While some BNPL apps function as standalone lenders, Zebit operates with a marketplace model. Integrating with various retailers or building their own marketplace platform requires additional development effort compared to a simple loan-based BNPL app. This can involve creating partnerships with merchants, managing product catalogs, and ensuring a seamless experience for shopping within the app.
No Credit Score Impact Disclosure
A defining feature of Zebit is that it doesn’t perform hard credit checks or report payment history to credit bureaus. Developing a system that tracks user payments while ensuring it doesn’t affect credit scores requires careful design and implementation, adding to development costs.
Educational Resources for Users with Limited Credit History
Zebit caters to users with limited credit history. To ensure responsible financial behavior, building educational resources or tools within the app to educate users on financial management and building credit can be a unique cost factor for such BNPL apps. Developing these resources requires additional UI/UX design and content creation efforts.
Tech Stacks Required to Develop a BNPL App Like Zebit
Developing a BNPL app like Zebit requires a robust technology stack to ensure seamless functionality and security. Here are some key tech stacks necessary to build a successful BNPL app.
1. Native or Hybrid App Development
Developing a BNPL app like Zebit involves deciding between native and hybrid app development. Native apps, developed specifically for iOS and Android using Swift and Kotlin, offer high performance and a seamless user experience. On the other hand, hybrid apps built with frameworks like React Native or Flutter enable companies to use a single codebase for both platforms, reducing development time and cost. Businesses must weigh the benefits of each approach to determine the best fit for their needs.
2. E-commerce Features
To enhance the shopping experience in the BNPL app, it’s crucial to include strong e-commerce features. These should encompass tools for product listings, shopping carts, secure payment processing, and order management. These elements are vital for ensuring a seamless and secure shopping experience, which can help businesses in attracting and retaining customers.
3. APIs for Soft Credit Checks
To allocate initial spending limits, Zebit likely uses services or APIs that perform soft credit checks. This non-intrusive method of assessing a user’s creditworthiness allows the company to extend credit responsibly without impacting the user’s credit score. Implementing soft credit checks is crucial for businesses aiming to provide inclusive financial services.
4. Underwriting Systems
Integrating an underwriting system is vital for assessing a user’s eligibility for specific purchases and determining appropriate payment terms. This process involves evaluating financial data and other relevant information to make informed lending decisions. By automating underwriting, companies can streamline operations and provide quick responses to users.
5. Payment Processing
Secure payment processing systems are critical for handling down payments and installments. Integrating reliable payment gateways ensures that transactions are processed safely and efficiently. Businesses must prioritize payment security to build trust with users and comply with financial regulations.
6. Cloud-Based Infrastructure
Utilizing cloud platforms like GCP or AWS provides the necessary data storage, processing power, and scalability for the app. Cloud-based infrastructure allows companies to manage large volumes of data and adapt to growing user bases without compromising performance. This flexibility is essential for sustaining business growth.
7. Machine Learning
Employing machine learning algorithms can enhance various aspects of the BNPL app. ML can be utilized for personalized product recommendations, fraud detection, and improving user experience. By analyzing user behavior and transaction patterns, businesses can offer tailored services and protect against fraudulent activities.
Conclusion
These days, BNPL apps are taking the world by storm, and it’s no surprise why. People want instant gratification, and that’s exactly what BNPL apps provide. With just a few clicks, people can make a purchase and pay for it later, satisfying their cravings without delay.
For fintech businesses, embracing BNPL is a smart move. Not only can they attract and retain loyal customers, but they can also capitalize on a rapidly expanding market with incredible potential.
Looking to Develop a BNPL app like Zebit?
Idea Usher can be your partner! Our team boasts over 500,000 hours crafting secure and scalable fintech solutions. We’ll leverage battle-tested architectures and cutting-edge APIs to build a robust BNPL platform that empowers seamless buy-now-pay-later functionality, integrated fraud detection, and real-time credit assessments – all while ensuring regulatory compliance. Let’s turn your vision into a reality.
developers, with combined 50000+ coding hours experience
FAQs
Q1: How much does it cost to develop a BNPL app?
A1: Developing a BNPL app involves several steps. First, define your target users and what sets your app apart. Then, choose a robust and scalable technology foundation. Partnering with experienced developers ensures seamless payment processing, robust fraud detection, and integrated credit checks. Finally, secure partnerships with payment gateways and navigate relevant financial regulations. Rigorous testing and a user-friendly interface are essential for a successful launch.
Q2: How to develop a BNPL app?
A2: Developing a BNPL app requires a multi-step approach. First, define your target audience and unique value proposition. Then, prioritize a secure and scalable tech stack. Partnering with experienced developers ensures features like seamless payment processing, fraud detection, and credit checks are built-in. Finally, it integrates with relevant payment gateways and complies with financial regulations. Rigorous testing and a user-friendly interface are crucial for a successful launch.
Q3: Is BNPL profitable?
A3: BNPL platforms are carving a profitable niche in the financial landscape. They earn revenue from merchants through transaction fees, typically a percentage of the sale that boosts the merchant’s average order value. Additionally, some platforms offer premium features or subscriptions to consumers, creating another revenue stream. Leading BNPL providers are demonstrating profitability through innovative strategies like improved credit assessments and cost-effective marketing. With a rapidly growing user base, the future of BNPL appears bright.
Q4: How do BNPL platforms make money?
A3: BNPL platforms like Zebit generate revenue through two key channels: merchants and consumers. They typically charge merchants a fee per transaction, often a percentage of the purchase price, for offering BNPL as a payment option. Additionally, some platforms may impose late fees on consumers who miss installment payments. This incentivizes on-time payments while creating another potential revenue stream.
