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How To Develop a BNPL App like ViaBill – Cost And Features

Develop a BNPL App like ViaBill

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 TypeCredit LimitAccount Fee (Monthly)
ViaBill Free2,000 DKKFree
ViaBill Plus2,000 DKK35 DKK
ViaBill Plus4,000 DKK69 DKK
ViaBill Plus6,000 DKK99 DKK
ViaBill Plus8,000 DKK135 DKK
ViaBill Plus10,000 DKK169 DKK
ViaBill Plus12,000 DKK199 DKK
ViaBill Plus14,000 DKK239 DKK
ViaBill Plus16,000 DKK269 DKK
ViaBill Plus18,000 DKK299 DKK
ViaBill Plus20,000 DKK329 DKK
ViaBill Plus22,000 DKK379 DKK

Key Market Takeaways for BNPL Apps

According to GrandViewResearch, the BNPL market is experiencing explosive growth and is projected to reach a staggering USD 26.1% CAGR by 2030. This surge is fueled by consumer demand for flexible payment options and the booming e-commerce industry.

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.

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?

PhaseTaskEstimated CostDetails
1. Research & PlanningMarket Research$5,000 – $10,000Analyzing competitor landscape, target audience demographics, and relevant regulations.
Feature Planning$5,000 – $10,000Defining core functionalities, prioritizing them based on user needs, and creating user stories.
Technical Feasibility Analysis$5,000 – $15,000Assessing technical requirements, choosing development approach (native vs. cross-platform), and outlining timeline.
Total for Research & Planning$5,000 – $20,000
2. Front-End DevelopmentUI/UX Design$15,000 – $50,000Creating a user-friendly and intuitive interface. Cost depends on complexity, number of screens, and level of animation.
Front-End Development$10,000 – $50,000Building the app’s user interface using frameworks like React Native or Flutter.
Total for Front-End Development$25,000 – $100,000
3. Back-End DevelopmentAPI Integrations$10,000 – $50,000Connecting with payment gateways, credit bureaus, and partner merchants.
Security Features$15,000 – $75,000Implementing robust security measures.
Database Management$10,000 – $25,000Setting up a secure database for user information and transactions.
Total for Back-End Development$40,000 – $150,000
4. App FeaturesShop 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 – $20,000Developing 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 – $30,000Developing order tracking, payment history, and secure user profile management.
Total for App FeaturesHighly Variable
5. Testing & Quality AssuranceFunctional Testing$5,000 – $15,000Ensuring all features work as intended across different devices and platforms.
Security Testing$5,000 – $10,000Identifying and addressing potential security vulnerabilities.
Performance Testing$5,000 – $10,000Optimizing 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. 

Looking to Develop a BNPL app like ViaBill?

Revolutionize the BNPL landscape with Idea Usher! Our 500,000 hours of fintech expertise and battle-tested tech stack, featuring secure React Native for mobile and scalable cloud platforms like GCP, will craft a BNPL app like ViaBill, but better. We’ll focus on cutting-edge features like AI-powered fraud detection and real-time credit assessment, ensuring a seamless user experience while mitigating risk. Let’s turn your BNPL vision into reality.

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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.

Picture of Debangshu Chanda

Debangshu Chanda

I'm a seasoned Technical Content Writer with over 5 years of experience transforming complex technical information into clear, engaging content. I'm skilled at creating content that serves as a bridge between experts and end-users, ensuring it is informative and easy to understand. My expertise covers various subjects, allowing me to adapt my writing style to different audiences. With a strong research foundation and keen attention to detail, I consistently deliver high-quality content that surpasses project goals.
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