How to Develop an App like Afterpay?

The rise of disruptive apps like Afterpay has transformed the way consumers manage their finances. These innovative platforms offer “buy now, pay later” solutions that resonate with modern purchasing habits, reshaping the traditional approach to transactions.

Are you intrigued by the possibility of developing your own finance-focused application, inspired by the success of Afterpay? Building such an app involves a fusion of technological expertise, a profound understanding of user behavior, and a strategic grasp of financial ecosystems.

In this WordPress blog series, we’ll explore the intricacies of creating apps akin to Afterpay, guiding you through vital steps, technological aspects, and strategic insights. From conception to implementation, we’ll delve into the essential components necessary to bring your vision to fruition.

Whether you’re an aspiring entrepreneur, a seasoned developer, or simply curious about the fintech landscape, this series aims to provide you with the knowledge and tools to navigate the development of groundbreaking applications.

Join us as we uncover the methodologies behind crafting finance apps that echo the success of Afterpay, igniting your journey into the realm of fintech innovation.

What is Afterpay App?

Afterpay has gained immense popularity, especially in Australia, as one of the leading buy-now-pay-later platforms. When customers opt for Afterpay as their payment method during an online purchase, they’re given the flexibility to divide their total cost into four equal installments, payable over an eight-week period. The beauty of this service lies in its fee-free structure, provided all payments are made punctually within the specified time frame.

By offering a seamless and transparent way to shop and pay, Afterpay has significantly transformed the retail landscape, catering to the preferences of modern consumers seeking more flexible payment methods.

How Does Afterpay App Work?

Here is the user flow of of afterpay app and how it works,

1. Creating Afterpay Account

Before initiating any transaction with Afterpay, users must sign up for an Afterpay account. This straightforward process generally requires basic personal information such as an email address, a mobile number, and the creation of a secure password. The account creation allows users to access the full suite of Afterpay services, manage their transactions, and view payment schedules. This initial step is essential for enabling the “buy now, pay later” feature that Afterpay offers.

2. Choosing the Store

After signin in, users can peruse the Shop Directory available on the Afterpay website or mobile app to identify participating stores. This extensive list encompasses various industries, from fashion and beauty to electronics and homeware, offering shoppers the freedom to select from a plethora of items available across diverse retail outlets. By collaborating with a broad range of merchants, Afterpay ensures its users have a seamless shopping experience.

Also read, “How to Develop a Decentralized Ecommerce Platform?”

3. Choose Afterpay at Checkout

Once users have selected the desired items from a partnered store, they proceed to the checkout page. Here, they opt for Afterpay as their preferred payment method among the available options. This selection signifies the intent to use Afterpay’s installment-based payment system. Afterpay’s integration at the point of sale allows users to select this payment option swiftly and effortlessly, integrating seamlessly into the retailer’s checkout process.

4. Instant Approval Decision

Afterpay promptly evaluates the user’s eligibility for the intended purchase. The assessment involves considering various factors to ascertain the user’s ability to meet the payment obligations, ensuring responsible lending practices. If the user is deemed eligible, Afterpay instantly approves the transaction, allowing them to proceed with the purchase. This swift approval process contributes to a seamless shopping experience, enhancing user satisfaction and convenience.

5. Make Your Purchase

Upon approval, the user can complete the purchase process. For online transactions, the retailer dispatches the purchased items following the successful checkout. In the case of in-store purchases, users can leverage the Afterpay mobile app. This app facilitates the setup of an Afterpay Card, which, when linked to Apple Pay or Google Pay, allows users to make contactless payments at physical retail outlets. This versatility in payment methods ensures a hassle-free shopping experience, whether online or offline¹.

6. Paying in Four Installments

Afterpay’s distinctive feature enables users to split the total payment into four equal installments. These installments are scheduled every two weeks, spreading the cost of the purchase over a short period without accruing any interest. Users can access their Afterpay account to view and manage their payment schedule. This flexibility empowers users to make early payments before the due date, enhancing financial control and management. Alternatively, Afterpay automatically debits the installment amounts from the user’s linked debit or credit card on the scheduled due dates, ensuring payment consistency and adherence to the agreed terms¹.

Key Market Takeaway for BNPL Apps like Afterpay

According to PrecedenceResearch, the estimated global market size for Buy Now Pay Later was USD 753.53 billion in 2022, projected to reach approximately USD 9,226.65 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 29% from 2023 to 2032. This surge reflects a notable shift in consumer payment behavior towards more flexible and convenient options.

The survey also revealed that 37% of respondents had used BNPL technology, with 27% doing so within the last year as of January 2023. This survey underscores the escalating adoption trend of BNPL among consumers. Additionally, BNPL platforms have witnessed a surge in traffic share within the payment landscape over the past three years, indicating a rising preference among consumers for these payment methods.

While established payment providers like PayPal and Google Pay have incorporated BNPL options into their services, the analysis primarily focuses on exclusive BNPL providers such as Afterpay, Klarna, Affirm, Zip, Sezzle, and PerPay, all making significant strides in the market.

Source: PrecedenceResearch

Traffic data analysis indicates that top BNPL companies are strategically designing their services to seamlessly integrate into online store payment journeys. This approach aligns with the emerging trend of many retailers offering multiple BNPL providers as payment methods, catering to diverse consumer preferences and enhancing the overall shopping experience.

Despite subtle differences in user experience, it’s crucial for retailers to consider the specific demographics and industries targeted by each provider. Understanding the unique focus of different BNPL platforms is vital for businesses looking to effectively integrate these payment options into their services.

Benefits of Apps Like Afterpay For Businesses in Fintech 

Explore the transformative impact of apps like  Afterpay within the fintech domain, unraveling the array of benefits they offer to businesses. Delve into how these innovative platforms revolutionize financial services, augment operational efficiency, and amplify customer satisfaction.

1. Expanding Customer Base

Integrating a dedicated BNPL app broadens the customer reach for Fintech businesses. It can cater to a wider demographic by offering flexible payment options, appealing particularly to customers seeking alternatives to traditional payment methods. By providing the flexibility to split payments into manageable installments, Fintech companies can attract users who might have been deterred by upfront costs. This expanded customer base not only increases market penetration but also diversifies the clientele, leading to a more resilient business model.

2. Augmenting Sales Volume

Leveraging a dedicated BNPL app for your business can significantly boost sales for Fintech businesses. The attraction of deferred payments encourages customers to make more significant purchases, resulting in an increased average transaction value. This surge in spending directly impacts revenue generation and profitability for Fintech firms. Moreover, offering BNPL options can convert hesitant buyers, who might have otherwise abandoned their carts, into confirmed purchasers, thus enhancing overall sales figures and amplifying growth prospects.

3. Enhancing Customer Loyalty

Having your own BNPL app for your fintech business can foster stronger customer relationships by providing a convenient and flexible payment experience. The ability to split payments over time enhances customer satisfaction and loyalty. Satisfied customers tend to become repeat purchasers, contributing to higher retention rates and brand loyalty for Fintech companies. This loyalty not only translates into increased sales but also generates positive word-of-mouth referrals, attracting new customers and bolstering the business’s growth trajectory.

Also read, “Community App Development: A Complete Guide

4. Minimizing Cart Abandonment

Getting a dedicated BNPL app for your fintech business helps reduce instances of cart abandonment for Fintech businesses. Studies have shown that offering the option to split payments encourages customers to complete their transactions, particularly for more expensive purchases. By providing customers with a flexible payment solution, businesses significantly diminish the likelihood of cart abandonment, thereby securing more sales and sustaining business growth.

5. Competitive Advantage

Utilizing a tailored BNPL app can give your Fintech businesses a competitive edge in a crowded market. By offering innovative payment methods like BNPL, companies stand out from competitors and position themselves as modern, consumer-centric, and adaptable entities. This unique proposition sets them apart from traditional financial services, attracting a new segment of customers and strengthening their market position.

6. Improved Cash Flow

Having a personalized BNPL app can aid in optimizing cash flow management for your Fintech business. These apps ensure timely payments from customers while allowing them to manage their finances more effectively. By offering a structured payment plan, businesses can project revenue and plan expenditures more accurately, leading to improved financial stability and better cash flow management.

7. Lowering Default Risks

Getting a dedicated BNPL app for your Fintech business can also mitigate the risk of defaults. These apps often perform rigorous risk assessments and credit checks on customers, minimizing the chances of payment defaults. Additionally, the ability to set spending limits and payment schedules reduces the risk of financial delinquencies, safeguarding businesses against potential losses.

8. Encouraging Higher Purchase Frequency

If you get a dedicated BNPL app for your fintech business, it can encourage customers to shop more frequently by providing them with an option to make purchases without immediate full payment. This increased purchasing frequency directly impacts Fintech businesses’ revenue streams. The convenience of deferred payments prompts customers to make additional purchases or choose higher-priced items, leading to an uptick in sales frequency and overall business growth.

9. Strengthening Brand Perception

Adopting a personalized BNPL app can elevate the brand image of your Fintech businesses. Customers perceive businesses that offer flexible payment solutions as more modern, customer-centric, and accommodating. This positive brand perception not only attracts new customers but also reinforces existing customers’ trust and loyalty. An enhanced brand image helps in standing out in a competitive market, boosting customer acquisition, and driving sustainable business growth.

10. Facilitating Financial Inclusion

Having a dedicated BNPL app can also contribute to financial inclusion by making purchases more accessible to individuals who might face financial constraints. Your fintech businesses can thus contribute to a more inclusive and diverse customer base. By providing flexible payment options, businesses enable a wider range of customers to access products and services, thereby fostering economic empowerment and inclusion.

How to Develop a Buy Now Pay Later App Like Afterpay?

Here’s a comprehensive step-by-step guide on developing a Buy Now Pay Later (BNPL) app akin to Afterpay:

1. Thorough Market Research and Analysis

Before initiating the development of a BNPL app like Afterpay, thorough market research and analysis are paramount. Dive deep into the BNPL ecosystem to understand market dynamics, consumer behavior, and competitor strategies. Identify the target audience, their preferences, pain points, and behaviors when it comes to payment methods. Analyze the regulatory landscape to ensure compliance and assess potential retail partnerships for integration. This phase is pivotal in defining the app’s unique value proposition and crafting a strategic business plan to navigate the competitive BNPL market successfully.

Conducting comprehensive market research often involves using tools like SimilarWeb or Alexa to analyze competitor websites, traffic, and user behavior. Utilize Google Analytics to understand user demographics and preferences. Tools like SurveyMonkey or Typeform aid in creating surveys for customer feedback and industry analysis.

2. Plan and Conceptualize

Once armed with comprehensive market insights, meticulously plan and conceptualize the BNPL app. Define the core features and functionalities based on research findings, ensuring they align with customer needs. Develop a clear project roadmap encompassing budgeting, technological infrastructure, and a robust timeline. Decide on the revenue model, whether it’s derived from merchant fees, user interest, or a hybrid approach. This phase lays the foundation for a well-structured development process by outlining the app’s direction, goals, and objectives.

During the planning phase, tools like Trello or Asana assist in project management and task allocation. Employ wireframing tools like Sketch or Adobe XD for visualizing the app’s structure and flow. Lucidchart or Miro help in creating comprehensive flowcharts and roadmaps.

3. Design and User Experience

Invest significant efforts in crafting an appealing and intuitive user interface (UI) and user experience (UX) for your BNPL app. Prioritize an aesthetically pleasing design coupled with ease of navigation. Consider user accessibility, ensuring that the app is usable by individuals of diverse abilities. Create wireframes and prototypes to visualize user interactions and workflows. Focus on responsiveness across various devices and screen sizes, aiming for a seamless and engaging user experience that resonates with your target audience.

For UI/UX design, graphic design tools like Adobe Photoshop or Illustrator are commonly used. Prototyping tools such as InVision or Figma aid in creating interactive prototypes for user testing. Accessibility tools like Axe or WAVE ensure compliance with accessibility standards.

4. Commence App Development

As the conceptualization phase crystallizes, engage a proficient development team to commence building the BNPL app. Integrate the app seamlessly with e-commerce platforms, payment gateways, and backend systems to facilitate hassle-free transactions across multiple retailers. Implement real-time credit assessment mechanisms, flexible repayment options, and stringent security measures to ensure user trust and data protection. This phase is pivotal in translating the app’s conceptualization into a functional, feature-rich application ready for testing.

Development involves using programming languages like JavaScript, Python, or Swift. Frameworks such as React Native or Flutter offer cross-platform development capabilities. Integrated Development Environments (IDEs) like Visual Studio Code or Xcode facilitate coding and debugging.

5. Thorough Testing and Quality Assurance

Rigorous testing and quality assurance are imperative before the app’s launch. Conduct comprehensive tests to ensure flawless functionality, security, and compatibility across diverse platforms and devices. Perform usability tests to gather user feedback on the app’s ease of use and overall experience. Conduct thorough security audits to identify and rectify vulnerabilities, guaranteeing user data protection. Regularly update and enhance the app based on feedback received during the testing phase to refine its performance and functionality.

For testing, tools like Selenium or Appium assist in automated testing across platforms. Postman aids in API testing, ensuring seamless integrations. Security testing tools like OWASP ZAP or Burp Suite help identify vulnerabilities.

6. Launch and Marketing Strategy

As the app nears completion, craft a strategic launch plan backed by a robust marketing strategy. Utilize digital advertising, social media promotions, and collaborations with retail partners to effectively reach your target audience. Emphasize the app’s unique features and benefits to capture user attention. Offer incentives or limited-time promotional offers to entice new users. Continuously monitor user feedback post-launch and incorporate necessary improvements to enhance the app’s competitiveness in the dynamic BNPL market landscape.

Marketing tools like Mailchimp or HubSpot assist in email campaigns and customer engagement. Social media management tools like Hootsuite or Buffer aid in scheduling posts and analyzing engagement metrics. Google Ads or Facebook Ads Manager help run targeted advertising campaigns.

7. Idea and Concept Development

The development of a successful BNPL app like Afterpay initiates with the cultivation of a distinct and viable idea. Define the app’s unique selling propositions, differentiating features, and the value it brings to users. A profound understanding of what sets your app apart from competitors is pivotal to its success. Identify the core functionalities that align with your app’s purpose and resonate with your target audience.

Brainstorming tools like Miro or Stormboard facilitate collaborative idea generation and mind mapping. Productboard or Aha! help in organizing and prioritizing features based on user feedback.

8. Identify Target Audience

Thoroughly identify and analyze your target audience to comprehend their specific needs, preferences, and pain points. Tailor the app’s features, functionalities, and user interface to meet these distinct requirements. By understanding your user base comprehensively, you can ensure that the app aligns with their expectations, thereby increasing its appeal and usability among the intended audience.

Customer relationship management (CRM) tools like Salesforce or HubSpot CRM assist in understanding and segmenting the target audience. Analytics tools like Google Analytics or Mixpanel provide insights into user behavior.

9. User Interface and User Experience Design

Prioritize the development of a visually appealing and user-friendly interface to ensure a seamless and engaging user experience. Focus on intuitive navigation, clarity in design elements, and responsiveness across various devices and screen sizes. Create prototypes and conduct usability tests to gather user feedback and refine the app’s design to cater to a broader audience. A well-designed UI/UX can significantly enhance user satisfaction, retention, and overall app performance in the competitive BNPL market.

UI/UX design tools like Adobe XD, Sketch, or Figma are used to create mockups and high-fidelity designs. Accessibility checkers such as Axe or WAVE ensure the app is user-friendly for all.

Must Have Features in Buy Now Pay Later Apps like Afterpay

Let us go through some of the essential features that are a must-have in Buy Now Pay Later (BNPL) apps:

1. Tailored Payment Plans for Enhanced User Flexibility

For businesses venturing into BNPL app development, incorporating diverse and tailored payment plans is crucial. Providing customers with a range of flexible payment options empowers them to select plans aligned with their financial capacities. This not only enhances user satisfaction but also expands the user base, attracting individuals seeking personalized payment structures. By offering versatile payment plans, businesses can cater to a wider audience, fostering increased sales and customer loyalty.

2. Interest-Free Transaction Offers for Increased Appeal

To stand out in the market, businesses venturing into BNPL app creation should consider the inclusion of interest-free transaction features. This offering serves as a compelling attraction for users by eliminating the burden of additional interest charges. By emphasizing interest-free transactions, businesses can draw in customers seeking cost-effective payment solutions, effectively setting their BNPL service apart from conventional credit options.

3. Transparent Fee Structure for Building Trust

Transparency in fee structures is paramount for businesses developing BNPL apps. Providing clear and concise details regarding any associated fees, including late payment charges or convenience fees, fosters trust and credibility among users. By ensuring transparency in fee disclosures, businesses establish a solid foundation of trust with their user base, enhancing the app’s appeal and encouraging long-term engagement.

4. Soft Credit Checks to Expand Accessibility

Incorporating soft credit checks within the app’s functionality expands accessibility to a broader user demographic. Conducting soft credit inquiries that don’t impact credit scores reduces barriers for potential users hesitant about affecting their credit profiles. This inclusive approach attracts a wider user base, encouraging those cautious about credit-related concerns to explore and utilize the BNPL service.

5. Seamless Checkout Integration for Enhanced User Experience

Streamlining the integration process with various online retailers is pivotal for a seamless checkout experience. A BNPL app that smoothly integrates into the checkout processes of diverse e-commerce platforms ensures a frictionless user experience. Simplifying transactions encourages users to adopt the service, ultimately boosting user satisfaction and adoption rates for the app.

6. Comprehensive Payment Tracking for Financial Planning

Offering users a comprehensive payment tracking feature aids in financial planning and management. Enabling users to easily monitor their payment schedules and upcoming installments promotes responsible financial behavior. By providing clear visibility into payment statuses, businesses assist users in managing their finances effectively, thereby enhancing user satisfaction and loyalty.

7. Extensive E-commerce Integration for Wider Accessibility

An extensive integration with multiple e-commerce platforms amplifies the app’s reach and usability. Strengthening the app’s presence across various online shopping destinations enhances accessibility for users, allowing them to use the BNPL service at their preferred retailers. This broad reach improves the app’s value proposition, making it more appealing and user-friendly.

8. Intuitive User Interface for Enhanced Engagement

Designing an intuitive and user-friendly interface is crucial to engage and retain users. A well-organized and intuitive design simplifies navigation and interaction, ensuring a positive user experience. Enhancing usability and accessibility positively impacts user engagement, influencing their perception of the service and increasing overall satisfaction.

Also read, “Streamlining KYC with Blockchain

9. Automated Payment Options for User Convenience

Simplifying the repayment process through automated payment options reduces the hassle for users. Allowing users to automate their payments decreases the risk of late fees and missed deadlines, ensuring timely repayments. This convenience promotes user satisfaction, encouraging continued usage and loyalty towards the BNPL service.

10. Responsive Customer Support for Reliable Assistance

A robust customer support system offering multi-channel assistance ensures users receive prompt help and clarification when needed. Responsive customer support enhances user trust and satisfaction, demonstrating the app’s commitment to assisting users effectively. Quality customer service plays a vital role in fostering positive user experiences and nurturing long-term user loyalty.

Tech Stacks to Consider to Develop an BNPL App

To Develop app like Afterpay, choosing the right tech stack is pivotal for creating a robust and efficient platform. Here are ten crucial components to consider:

1. Cloud Providers

For businesses embarking on BNPL app development, leveraging established cloud providers such as AWS, GCP, or Azure is pivotal. These platforms offer scalable, reliable, and secure infrastructure, enabling seamless storage, processing, and data management. Cloud services ensure cost-effectiveness, flexibility, and the capability to handle varying user loads, crucial for a successful BNPL app catering to a growing user base.

2. APIs (Application Programming Interfaces)

Integrating robust payment gateway APIs like Stripe or PayPal within BNPL apps ensures secure and hassle-free transactions. These APIs empower businesses to facilitate convenient payment experiences, enhance user trust, and streamline the payment process. For businesses, leveraging APIs means focusing on core app functionalities while ensuring seamless and secure payment interactions, fostering user retention and loyalty.

3. PaaS (Platform as a Service)

Utilizing PaaS solutions such as Heroku or AWS Elastic Beanstalk expedites app development and deployment. PaaS platforms provide ready-to-use environments and tools, reducing development time and overhead costs. This enables businesses to prioritize app functionality, enhance development speed, and swiftly adapt to changing market demands, crucial for a competitive BNPL app launch.

4. SDKs (Software Development Kits)

Integrating payment processing SDKs like Braintree or Square simplifies the app development process. These SDKs offer pre-built tools and functionalities, accelerating development while ensuring secure payment handling. For businesses, leveraging SDKs means expedited development cycles, reduced complexities, and reliable payment processing, ultimately delivering an efficient and user-friendly BNPL app.

5. SDLC Methodology (System Development Life Cycle)

Adopting Agile or DevOps methodologies ensures streamlined project management, improved collaboration, and rapid iterations. Implementing these methodologies alongside tools like Jira or Git enhances team productivity and accelerates app development cycles. For businesses, utilizing SDLC methodologies means adaptable workflows, quicker response to market changes, and efficient resource allocation, ensuring timely BNPL app releases.

6. Scalability Solutions

Implementing scalable solutions like Kubernetes or CDN services empowers BNPL apps to handle varying user traffic seamlessly. Scalability solutions ensure app performance, reliability, and availability during peak times, crucial for maintaining user satisfaction and trust. For businesses, scalable architecture means accommodating user growth, delivering consistent service quality, and preparing the app for future expansions and innovations.

7. Security Measures

Prioritizing robust security measures such as encryption, secure authentication, and compliance with standards like PCI-DSS safeguards user data and transactional integrity. Implementing tools like HashiCorp Vault or Auth0 fortifies app security, instilling user confidence and trust in the BNPL app. For businesses, stringent security measures mean protecting sensitive user information, fostering credibility, and mitigating potential risks, ensuring sustained user loyalty.

Also read, “How to Develop an Accessibility App?

8. User-Centric Design and Convenience

Leveraging front-end frameworks such as React or AngularJS ensures intuitive and responsive app interfaces, contributing to a seamless user experience. Emphasizing UX/UI design tools like Figma or Adobe XD facilitates visually appealing and user-centric app layouts, enhancing user convenience and engagement. For businesses, focusing on user-centric design translates into higher user satisfaction, increased app usage, and prolonged user retention, crucial for BNPL app success.

9. Engineering Process Optimization

Implementing version control systems and CI/CD pipelines ensures streamlined development, faster iterations, and enhanced collaboration among teams. Automation tools like Jenkins or GitLab expedite development cycles, allowing businesses to maintain focus on innovation and quality. For businesses, optimized engineering processes result in accelerated time-to-market, reduced development costs, and improved app reliability, crucial for a competitive BNPL app launch.

10. Regulatory Compliance

Staying abreast of compliance standards using tools like GDPR Cookie Consent or OneTrust ensures adherence to regional and industry-specific regulations. Compliance tools assist businesses in managing user consent, data protection, and privacy policies, ensuring legal compliance and fostering trust among users. For businesses, adherence to regulations signifies credibility, mitigates legal risks, and establishes a strong foundation for sustained user confidence and loyalty.

Top Buy Now Pay Later Apps in 2023

Buy Now Pay Later (BNPL) services have revolutionized consumer payment options, offering flexible installment plans without traditional credit-related barriers. Here are the top BNPL apps in 2023, each with its unique features and policies regarding interest rates:

1. Affirm

Launch Date: 2012

Estimated Annual Revenue: $1.588 billion

Affirm distinguishes itself by providing users with tailored payment options based on their creditworthiness. The platform offers transparent terms and varying Annual Percentage Rates (APRs). Affirm strength lies in its ability to conduct soft credit checks that do not impact the user’s credit score. It empowers consumers by allowing them to select payment plans suitable for their needs and preferences without incurring additional fees. This flexibility and transparency in payment options contribute to Affirm’s appeal among users looking for manageable payment structures.

2. Sezzle

Launch Date:  2016

Estimated Annual Revenue: $125.57 million

Sezzle stands out for offering interest-free purchases coupled with a suite of essential features for managing payments. While Sezzle itself doesn’t charge interest, there might be late fees incurred if scheduled payments are unsuccessfully processed. Its feature set includes functionalities such as invoicing, payment tracking, and seamless integration with e-commerce platforms. Sezzle’s interest-free purchasing model appeals to consumers seeking flexible payment options without the burden of added interest charges, fostering financial convenience and transparency.

3. Splitit

Launch Date: 2009

Estimated Annual Revenue: $418.6k

Splitit differentiates itself by providing users with the autonomy to select installment numbers, granting them financial independence. The platform does not charge additional interest or fees, although credit card fees might apply. Its unique approach allows consumers to manage payments for high-value purchases without incurring substantial fees. Splitit’s focus on user empowerment through flexible installment options and a transparent fee structure attracts individuals seeking manageable payment solutions.

4. Perpay

Launch Date:  2014

Estimated Annual Revenue: $16.1 million

Perpay echoes the BNPL norm by offering interest-free payments but may impose late fees for missed payments. Users can split purchases into four installments with an option for early payments, providing financial relief over a user-friendly six-week period. Its automatic payments system ensures ease of use, allowing consumers to budget effectively while enjoying the flexibility of staggered payments.

5. PayPal Pay Later

Launch Date: 2022

Estimated Annual Revenue: $27.518 billion.

PayPal Pay Later key feature is its interest-free payment plans over a six-week period. While it doesn’t charge fees for basic offerings, larger loans for extended repayment terms may incur interest charges. Its integration within Apple Wallet simplifies repayment management, offering users a convenient and accessible platform for tracking and managing their payment plans.

6. Klarna

Launch Date: 2005

Estimated Annual Revenue:  $2.02 billion

Klarna’s appeal lies in its versatile payment options, including Pay in 4 and Pay in 30 models that don’t involve interest or fees. However, its Financing option may carry an interest rate ranging from 0%-29.99% APR. The platform enables users to split payments into installments across a wide array of products and retailers, catering to varying financial needs and preferences.

7. Apple Pay Later

Launch Date: 2023

Estimated Annual Revenue:  $4 billion

Apple Pay Later provides users with the flexibility to split purchases into four interest-free payments over six weeks. While it doesn’t charge interest or fees for these installments, late fees may apply for missed payments. Its integration within Apple Wallet simplifies repayment management, ensuring user convenience and accessibility.

8. Zip

Launch Date: 2013.

Estimated Annual Revenue: $515 million.

Zip distinguishes between ZipPay and Zip Money, with ZipPay being interest-free while ZipMoney incurs interest after a minimum interest-free period. Its pay-in-four model at retailers accepting Visa cards aims to simplify payment structures and cater to various user preferences. Zip’s offerings aim to balance flexibility and transparency in payment options for users, ensuring ease of use and financial convenience.

Hire ex-FANG developers, with combined 50000+ coding hours experience

Hire Ex - developers, with combined 50000+ coding hours experience

100% Developer Skill Guarantee; Or Your Money Back.


To develop app like Afterpay involves a structured approach encompassing various stages. Market research is crucial to understand consumer behavior and the competitive landscape. Planning, conceptualizing, and defining the target audience are vital preparatory steps. A focus on UI/UX design, seamless integration, rigorous testing, and a robust marketing strategy are key components during development. Utilizing tools like SimilarWeb, Google Analytics, InVision, and development languages/frameworks such as JavaScript, React Native, and Swift, ensures a systematic and efficient app development process.

At IdeaUsher, we understand the complexities of developing an app similar to Afterpay. From ideation to execution, our expert team navigates through market research, conceptualization, UI/UX design, development, and marketing strategies to craft a robust and user-friendly BNPL app. Whether it’s mobile app development, web app integration, or comprehensive project management, our services cover all aspects of app development. If you’re keen on venturing into the world of Buy Now Pay Later apps, IdeaUsher offers the expertise and guidance you need for a successful app launch.


Q1: How do apps like Afterpay make money?

A1: Apps like Afterpay generate revenue primarily through merchant fees. They charge a percentage of the transaction value to the retailers or merchants offering their service. Additionally, they may also earn interest from users who miss repayments or opt for extended payment plans.

Q2: How do I create a buy now, pay later app?

A2: Creating a buy now, pay later (BNPL) app involves several steps. It starts with comprehensive market research to understand user needs and competition. Plan and conceptualize the app, focusing on user experience design, payment integrations, and security. Develop the app using suitable technologies and frameworks, test it rigorously, and launch it with a robust marketing strategy.

Q3: How do I create a BNPL service?

A3: To create a BNPL service, begin with understanding your target audience and their needs. Develop a business plan, including revenue models and partnerships with merchants. Design the app with a user-friendly interface, secure payment systems, and flexible repayment options. Test the service thoroughly for functionality and security before launching it to the market.

Q4: What is the Paylater method?

A4: The Paylater method, often termed as Buy Now Pay Later (BNPL), is a financial service that allows customers to make purchases and pay for them in installments over time, instead of paying the full amount upfront. This method provides consumers with the flexibility to split payments into manageable chunks, usually without interest, offering convenience and affordability in their purchasing experience.

Share this article
Contact Us
HR contact details
Follow us on
Idea Usher: Ushering the Innovation post

Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.

Our Partners
Contact Us
Follow us on
Idea Usher: Ushering the Innovation post

Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.

Our Partners
© Idea Usher. 2024 All rights reserved.