“Banking is necessary; banks are not.” – Bill Gates

Creating a Buy Now, Pay Later (BNPL) application similar to Afterpay is a thrilling concept since it allows consumers to make a purchase and pay over a period of time. 

Consumers appreciate the convenience and flexibility of payment options, and Afterpay-like platforms facilitate a purchase quickly and in a more seamless manner. 

In BNPL app development, it is also important to understand the working of such applications, the required core functions, and the security of user data. 

In this blog, we have mapped out the fundamental aspects of such an application in the simple, understandable manner. 

This will give you an idea of the useful features that build a BNPL app like Afterpay that is intuitive and customer-centered.

What is an Afterpay App?

Afterpay is a popular Buy Now Pay Later app that revolutionizes the way consumers shop. It allows users to make purchases online and in-store and pay for them in interest-free installments. Afterpay conducts real-time credit assessments, offering immediate approval decisions and flexible payment schedules, typically split into four equal payments.  

Users can manage their transactions, view upcoming payment due dates, and access purchase history through the afterpay buy now pay later app. This model enables consumers to budget effectively and access products they might not otherwise afford. So, if you are planning to build an app like Afterpay for your business, then you must take help from iOS or Android app developers. 

Global Market Statistics of Buy Now Pay Later Applications

• The global BNPL apps market was valued at around $9.50 billion in 2024; it is projected to increase to around $80.15 billion by the end of 2033. 
• Look at the region-wise, the North America region accounted for a 29.3% market revenue share in 2024. 
• As the channel-wise, the online segment holds the largest revenue share of 66.5% in 2024. 
• According to the worldwide market, the Buy Now Pay Later applications market is expected to grow with a CAGR of 27.0% from 2025 to 2033. 
• As per the recent survey, Mexico in the BNPL market shows rapid growth over the forecast years. 

Achievements and Awards: Afterpay

• Afterpay has been recognized with technology/innovation awards: for instance, co‐founder Nick Molnar (CEO) won the 2018 NSW ICT Entrepreneur of the Year Award. 
• The Australian Securities Exchange (ASX)- listed Afterpay has become one of the leading fintech firms, with notable global expansion.
• Afterpay engages in partnerships and rewards with Nift Networks to launch an exclusive program for 5+ million customers, and it has involved 12,000 brands. 
• Afterpay celebrates its 10-year anniversary in 2024 and has crossed over 1 billion transactions globally. 
• In 2024, Afterpay has more than 24 million active users and around 348,000 merchants globally on the platform.

Why Do Businesses Want to Invest in Buy Now Pay Later App Development?

Businesses invest in Buy Now Pay Later apps to make payments easier for customers, increase sales, attract younger users, improve customer loyalty, and compete with other companies. And allow customers to buy more by paying in installments over time.

1. Increase Sales and Conversions

BNPL apps let customers pay in installments, reducing hesitation during checkout. This convenience encourages higher purchase completion rates, increases average order value, and stimulates repeat buying behavior, ultimately helping businesses boost overall sales and improve conversion metrics.

2. Attract Younger, Tech-Savvy Customers

Millennials and Gen Z prefer digital-first payment solutions that offer flexibility. By providing BNPL options, businesses can appeal to this audience, capture tech-savvy consumers, and strengthen brand loyalty among younger demographics who prioritize convenience, affordability, and instant access to credit.

3. Enhance Customer Loyalty 

A BNPL app like Zilch improves the overall shopping experience by making purchases easier and more manageable. Customers appreciate the flexibility, leading to greater satisfaction, trust, and repeated transactions. This strengthens long-term relationships and increases retention, encouraging brand loyalty over time.

4. Gain Competitive Advantage

Integrating BNPL differentiates a business from competitors who offer only traditional payment methods. It positions the brand as innovative and customer-focused, attracting new customers seeking flexible payment options and retaining existing ones, which strengthens market position and overall competitiveness.

5. Increase Average Order Value (AOV)

A BNPL app like Klarna allows customers to make larger purchases without immediate financial strain. By splitting payments into manageable installments, users are more willing to buy higher-priced items, leading to increased cart size, higher revenue per transaction, and improved profitability for businesses.

Steps to Build a Buy Now Pay Later App Like Afterpay 

Building a Buy Now Pay Later app like Afterpay requires a systematic approach and a deep understanding of the fintech industry. Here are the key steps to help you create your own BNPL app by taking help from a fintech mobile app development services provider: 

1. Market Research and Analysis:

Conduct thorough market research before diving into development to understand the BNPL environment, consumer preferences and competitor offerings. Identify the target audience and their pain points. Assess potential retail partnerships and regulatory requirements. This step is critical in defining your app’s unique business strategy and value proposition.

2. Plan and Conceptualize:

Define the main features and functions of your BNPL application based on your research. Plan your project in detail, including budget, timelines and the technology stack. Decide on your revenue model. Is it through merchant fees, interest from users, or both? Create a roadmap for the app’s development, launch and updates. 

3. Design and User Experience:

Invest in an app that is visually appealing and user-friendly. To ensure seamless customer service, consider a responsive user interface. Focus on accessibility to ensure that your app can be used by people of all abilities. Before you create an ewallet app like Afterpay, wireframe and prototype the app to see how users will interact with it.

4. Start the App Development:

Bring your app to life with the help of experienced custom mobile app development services provider. Integrate your app into e-commerce platforms, payment gateways and other systems to allow users to shop with different retailers.

Implement real-time assessment of credit, flexible repayment options and secure payment processing. Create a dashboard that is easy to use for tracking transactions and managing accounts.

5. Testing and Quality Assurance:

Test your BNPL application thoroughly to ensure that it works seamlessly and securely. Usability testing is a great way to get feedback from users. Conduct security audits in order to identify and fix vulnerabilities. To ensure compatibility, test the app on different platforms and devices. Update and improve the app regularly based on feedback from users.

6. Launch and Marketing:

Once you have your BNPL mobile app ready, create a strategy to launch it. Develop a strategic marketing plan that includes digital advertising and social media promotions as well as partnerships with retailers to reach your targeted audience.

Bonus Read: Cost to Build Payment Apps Like CRED

Highlight your app’s unique features. Consider limited-time promotional offers or incentives as a way to attract new users. Continue to monitor user feedback and improve your application in order to remain competitive in the BNPL marketplace.

Case Study: Afterpay

“At Dev Technosys, we developed a Buy Now Pay Later (BNPL) app inspired by Afterpay, designed to make online shopping more flexible and accessible. Our goal was to empower users with easy, interest-free installment payments while helping merchants boost conversions. During development, we faced challenges in ensuring secure payment gateways, real-time credit checks, and a seamless user experience. We introduced AI-driven risk assessment, multi-currency support, and smart spending limits as new features. This app targets markets in the USA, UK, and Australia, focusing on responsible lending, smooth integrations, and a transparent payment ecosystem for both shoppers and retailers.”
Pramod Jangid – CTO

Crucial Features to Build a Buy Now Pay Later App Like Afterpay

Creating a Buy Now Pay Later app like Afterpay requires a comprehensive understanding of the critical features that make these platforms successful. In this section, we’ll delve into crucial features that are essential for Afterpay mobile banking application development.

1. User-Friendly Onboarding:

Start by creating a seamless onboarding process that allows users to sign up quickly. Ask for essential information, such as name, email, and phone number, to establish their identity. Provide an option for social media sign-ins to enhance user convenience.

2. Product Integration:

You must hire dedicated developers for the integration of this feature with e-commerce platforms and retail stores. This means users can shop from a variety of online and physical stores. Make sure your afterpay mobile app offers a wide range of products and retailers to cater to diverse customer needs.

3. Real-Time Credit Approval:

One of the standout features of BNPL apps is real-time credit approval. Implement a quick credit assessment process that assesses a user’s creditworthiness in real-time to determine if they are eligible for the service. This process should be fast and transparent, providing users with an instant decision.

4. Flexible Payment Schedules:

Offer users the flexibility to choose their payment schedules. Allow them to pay in multiple installments over a set period, such as weekly or monthly. Additionally, provide options for users to customize their repayment plans based on their financial capabilities. 

5. Transaction Management:

Implement a transaction management system in your loan lending app development that enables users to view their purchase history, outstanding balances, and payment due dates. Clearly display the details of each transaction and provide notifications when due dates are approaching to help users stay on top of their payments.

6. Secure Payment Processing:

Security is paramount in BNPL apps. Ensure that all transactions are securely processed and that users’ financial data is protected with robust encryption. Collaborate with trusted payment gateways to instill confidence in your users.

7. Customer Support:

Offer excellent customer support through various channels, including chat support, email, and phone. A responsive customer support buy now pay later app development company

 can assist users with any issues, queries, or concerns, ensuring a positive user experience. However, if you want to track your expenses, then you must build a BNPL app with the help of an expense management app development services provider. 

8. Reward Programs and Loyalty Points:

To encourage user engagement and loyalty, introduce a reward program. Users can earn loyalty points or cashback rewards for on-time payments or referring friends to the app. These incentives can enhance user retention and attract new customers. 

Comparison Between: Afterpay Vs Klarna 

Still confused? The buy now, pay later application is best for you that complete your project requirements. So, here we provide the detailed comparison table:

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Top 5 BNPL Apps like Afterpay

If you are planning to develop an app like Afterpay, then it is vital to know the different apps that are doing well in the market. So we have jotted down apps like Afterpay for your reference.    

1. Klarna:

Klarna, a popular Buy Now Pay Later application, allows shoppers to purchase items without having to pay in full immediately. Shoppers can making a BNPL app like klarna as their payment method at the checkout of a variety of retailers online and in stores.

Klarna app offers a simple, transparent, and secure payment method. It is also known for its easy-to-use interface, instant credit decisions and flexible payment schedules.

2. Affirm:

Affirm is one of the best buy now pay later apps South Africa. Users can make purchases online or in stores by splitting payments into manageable installments. Affirm offers a fast and transparent credit approval, which allows users to check their eligibility in real time.

3. Sezzle:

Sezzle is an app that allows users to split payments and make online purchases into interest-free installments. Sezzle allows shoppers to choose from thousands of online retailers, and then select Sezzle during the checkout process. Sezzle is one of the best similar apps like Afterpay that doesn’t need a credit check. It also offers flexible payment plans. This makes it an attractive choice for consumers who are looking for convenient and affordable shopping.

4. Uplift:

Uplift, a popular Buy Now Pay Later application, allows users to make purchases at retailers that are partners and pay in installments. It offers flexible payments, low or zero-interest rates and rapid credit approval processes. Uplift’s goal is to empower consumers with a simple and affordable way to manage finances when shopping for products and services.

5. Clearpay:

Clearpay, a popular app for Buy Now Pay Later, allows users to make purchases online or in stores and split their payments into installments that are interest-free.

The app is widely used throughout Europe and the United Kingdom. Clearpay offers real-time credit checking, flexible payment schedules and a seamless online shopping experience. Users can view payment plans and manage transactions. They can also receive payment reminders.

Cost to Build a Buy Now Pay Later App Like Afterpay

The cost to develop mobile apps relies on various factors. Also, it does not remain the same but keeps on fluctuating with time. However, the features of a BNPL mobile app can vary in complexity and functionality depending on your business’s needs, goals, and market conditions. 

The mobile App Development Cost can range between $10,000-$25,000 or more. Below is the table that showcases the cost to build an app like Afterpay on the basis of level of complexity. 

However, it is possible that you would like to know how simple, medium or complex apps are developed. This is why we’ve provided a simple calculator to help you estimate the cost for developing a buy-now-pay later app.      

BNPL App Development Time x Cost Per Hour for BNPL App Development=Total BNPL App Development Cost Estimate 

Moreover, if you want to know the accurate cost to build an app like Afterpay, then you must talk to an experienced hybrid app development company, who can give you an exact afterpay mobile app development cost. 

Factors Affecting the Cost to Build a BNPL App Like Afterpay

If you have already fixed your project budget, but you are aware of the crucial factors that can affect the BNPL app development cost. So, let’s explore various factors:

1. Development Team

The cost to build a BNPL app like Afterpay largely depends on the size, expertise, and location of your development team. Hiring skilled developers, designers, QA testers, and project managers increases quality but also expense. Offshore teams may be cheaper, while experienced fintech specialists ensure faster delivery and stronger security.

2. Platform Choice

Choosing between iOS, Android, or both affects overall cost. Building for multiple platforms demands more development time and testing. Cross-platform frameworks reduce expenses, but native apps offer better performance and security, which is important for a BNPL product handling financial transactions and sensitive user data.

3. Basic and Advanced Features 

Adding essential features like registration, payments, dashboards, and notifications requires moderate investment. Advanced capabilities such as credit checks, AI risk scoring, spending limits, analytics, and fraud detection significantly increase the cost of the mobile app like Tabby. The more complex and secure the system, the higher the cost to develop a BNPL app like Afterpay.

4. Third-Party Integrations

Integrating payment gateways, identity verification, credit bureaus, analytics tools, and fraud-prevention APIs can raise the cost to develop a BNPL app like Afterpay. Each service involves setup, customization, and sometimes subscription fees. Seamless, secure integration is crucial for BNPL apps, making these components essential but increasing the BNPL app development cost.

Tech Stacks Required to Build a Buy Now Pay Later App Like Afterpay

How to Make Money From BNPL Apps Like Afterpay?

Afterpay alternatives earn money through merchant fees, late payment charges, interchange fees, interest-based installment plans, and in-app affiliate marketplaces. These revenue streams help platforms boost profitability while offering shoppers flexible payments and merchants higher sales and customer engagement.

1. Merchant Fees

If businesses build loan apps like LazyPay, they can charge merchants a percentage fee for every transaction processed through their service. Stores gladly pay because BNPL boosts sales, increases average order value, and attracts more customers. This creates a steady revenue stream without directly charging shoppers.

2. Late Payment Fees

When users miss repayment deadlines, BNPL apps apply small late fees. While the goal isn’t to profit from penalties, these charges help encourage responsible borrowing and generate additional revenue, supporting the platform’s operations and fraud-prevention systems.

3. Interchange Fees

Every time a purchase is made using a BNPL virtual card, the provider earns interchange fees from card networks. These small percentages accumulate across millions of transactions, becoming a reliable income source without increasing costs for shoppers or merchants.

4. Interest on Financing Plans

Afterpay alternatives offer longer-term installment plans with interest. Unlike short, interest-free options, these financing plans help generate consistent revenue. Users benefit from extended payment flexibility, while the company earns steady interest income across higher-value purchases.

Final Thoughts

The BNPL payment method became popular when the pandemic hit the world. Apps that allow users to pay now and later have proved to be very convenient for those who want to buy but cannot afford it. The benefits and challenges of developing a build-now pay-later apps like Afterpay are unique.

Thus, now is the correct time to invest in a buy now pay later app development like Afterpay. You need to focus on each aspect, including brainstorming ideas and hiring the best eWallet app development company.