How Much Does It Cost to Develop Buy Now Pay Later App Like AfterPay?

Want to know the cost of developing buy now pay later (BNPL) apps like AfterPay and Affirm?

Well, the cost of developing BNPL apps starts from $25000 with just basic features. The cost of development depends on the features you include, the platform you choose, and the app development company you hire.

So, if you want to develop a BNPL app for your business, this blog will provide you with the complete bifurcation to develop BNPL like AfterPay and Affirm.

In fact, according to a report by Allied Market Research, the global buy now pay later market size was valued at $90.69 billion in 2020 and is projected to reach $3.98 trillion by 2030, growing at a CAGR of 45.7% from 2021 to 2030.

Having more than a decade of experience in app development & being one of the best apps developer company in the USA, we understand the cost structure to develop an app like AfterPay. In this guide, we’ll answer some of the most common questions entrepreneurs have about the cost to develop buy now pay later app.

From this blog, you will learn:

  1. Quick cost to build a simple, medium, and complex AfterPay and Affirm clone
  2. Factors that impact the cost of app development
  3. 5 ways to reduce the cost of app development
  4. How Space-O technologies help to build successful BNPL apps

So, let’s get started

The Cost Breakdown of Creating Buy Now Pay Later Apps Like AfterPay and Affirm

BNPL App TypesMust-have Features in BNPL Payment AppsCost of BNPL App DevelopmentTimeline of BNPL App Development
Simple App (Basic Features)
  • User registration and login
  • Product browsing and selection
  • Payment options
  • Payment tracking
  • Basic user support
$25,000 – $35,0002-3 months
Medium App (Slightly advanced features)
  • All the features of a simple BNPL app
  • Integration with multiple e-commerce platforms
  • Advanced user support
  • Personalized product recommendations
  • In-app chat support
$35,000 – $45,0004-7 months
Complex App (Highly advanced features)
  • All the features of a medium BNPL app
  • Customizable user profiles and preferences
  • Multiple payment options, including credit cards and bank accounts
  • Advanced analytics and reporting features
  • Comprehensive API integration with partner merchants
Starts from $50,0008-12 months

The features and complexity of a BNPL app vary depending on the specific needs and goals of the business, as well as the market demands and competition.

You might want to know how the development of simple, medium, and complex buy now pay later apps is calculated. So here, we have provided a simple formula to calculate the cost of buy now pay later app development. This simple formula is also referred to as an app development cost calculator.

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

So, from this formula you calculate the actual cost of the buy now pay later app.

However, there are many factors that affect the buy now pay later app development cost. Let’s understand the factors impacting the cost.

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Understanding 5 Key Factors that Impact the Cost of Buy Now Pay Later Application

Factors that impact the cost of BNPL app development include

  • BNPL app development platform
  • UI/UX design
  • Features you want to integrate in your native BNPL app
  • Location of the app development
  • Hiring approach for app development

Considering these factors is crucial for estimating the development cost accurately. Let’s get an in-depth understanding of each factor in detail.

  1. App Development Platform (iOS/Android/Cross-platform) for Developing Buy Now Pay Later App

    When choosing a platform for developing a BNPL app, businesses should consider their target audience. Developing for both iOS and Android platforms is time-consuming and costly, while cross-platform development may be more cost-effective but result in a less polished design. Let’s understand how much it costs to develop a BNPL app on iOS, Android, and cross-platform apps.

    For the below table, we have considered a minimum rate of $15 per hour and a maximum of $25 per hour.

    BNPL App Development Platform (Basic Features)BNPL App Development TimeBNPL App Development Cost
    iOS BNPL app development900-1300 hours$13,500 to $32,500 per platform
    Android BNPL app development800-1200 hours$12,000 to $30,000 per platform
    Cross-platform BNPL app development1000-1350 hours$15,000 to $33,750 both the platform

    Apart from this, here are a few more details to consider when deciding which platform to develop your BNPL app.

    iOS BNPL App Development: Developing an app for iOS can be more expensive than developing for Android, as it requires the use of Xcode and Swift programming language. However, iOS users tend to spend more money on in-app purchases and have higher brand loyalty.

    If your target audience consists of high-income consumers who prefer Apple products, iOS may be the better platform to provide BNPL online payment services.

    Android BNPL App Development: Developing an app for Android can be less expensive than developing for iOS, as it uses Java programming language and is developed using Android Studio.

    Android has a larger market share than iOS, so it may be a better platform if your goal is to reach a broader audience. However, Android has more fragmentation and device compatibility issues, which can make development more challenging.

    Cross-Platform BNPL App Development: Cross-platform development can be a cost-effective option, as developers use cross-platform frameworks and a single codebase to develop the app for both iOS and Android. This reduced development time and cost, but may result in a less polished user interface and fewer platform-specific features.

    Cross-platform development is a good option for small to medium-sized businesses that want to reach both iOS and Android app users without the added cost of developing separate apps.

    So, the choice of platform depends on your business goals, target audience, budget, and available resources. It’s essential to consider all these factors when deciding which platform to develop your buy now pay later app on.

  2. Must-have Features for Your Custom Buy Now Pay Later App Development

    When developing a custom buy now pay later app like AfterPay and Affirm, there are several key features to consider integrating to ensure its success.

    By integrating the below-mentioned features, a custom buy now pay later app provides a seamless and secure payment experience for customers while also offering valuable insights into your business. So, if you want to integrate the features like Affirm and AfterPay, here is the time taken for buy now pay later app development.

    Note: The per-hour rate has been considered $15 for developing this app.

    Features of AfterPay and Affirm BNPL AppDescriptionDevelopment Timeline
    Personalized credit limits and payment schedulesAllow customers to set their own payment schedules and credit bureaus based on their financial situation.100-120 hours
    Automated payment scheduling and remindersAutomatic payment scheduling and reminders to help customers avoid missed payments, all the upcoming payments, high-interest rates, and late fees.60-90 hours
    Integration with popular online retailersIntegration with popular e-commerce platforms to make it easier for customers to find and purchase products and get flexible financing options.140 – 190 hours
    Robust fraud detection and prevention measuresAdvanced security features such as two-factor authentication, biometric authentication, and anti-fraud algorithms to prevent fraud and protect customer data.80 – 100 hours
    Analytics and reporting capabilitiesInsights and data tracking tools provide businesses with valuable information about customer behavior, payment trends, and financial performance.70 – 90 hours
    In-store payment methodIntegration with in-store payment options, such as QR codes or NFC payments, to allow customers to make purchases in physical retail stores.130 – 170 hours
    Loyalty programIncentives for customers to use the buy now pay later app repeatedly, such as cashback or discounts for repeat purchases.80 – 100 hours
    Customer supportComprehensive customer support options, such as email, phone, and chat, to help customers with any questions or issues they may have.70 – 90 hours
    Multiple payment optionsSupport multiple payment methods, including credit cards, debit cards, and bank transfers.120 – 200 hours
    Personalized product recommendationsAdvanced algorithms that analyze customer data and purchase history to provide personalized product recommendations.50 – 60 hours
    Early payment discountsIncentives for customers to pay off their balance early, such as discounts on interest or a monthly fee.50 – 60 hours
    Credit score trackingAllows customers to track their credit score and monitor their credit history.50 – 80 hours
    Multiple language supportSupport for multiple languages to cater to a wider audience.40 – 50 hours

    Apart from this, if you are looking to build a BNPL app like AfterPay or Affirm, even consider the cost of integrating P2P payment options into your app. Peer-to-peer payment features greatly enhance the user experience and convenience of your BNPL app, but they also add to the overall cost of development. If you want to know about P2P development, check the cost to build P2P payment apps.

    These are just some of the many features that you might consider integrating into an AfterPay and Affirm-like buy now pay later app.

    You should prioritize the features that align with their business objectives, target audience, and budget. Even ensure that the features you choose are user-friendly, secure, and comply with industry regulations.

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  3. Intuitive UI/UX Design Needed for Your Buy Now Pay Later App

    The cost of UI/UX design impacts the overall cost of developing BNPL solutions. A well-designed UI/UX significantly enhances the user experience and increases user engagement, which can result in more customer conversions and ultimately, increased revenue. On the other hand, a poorly designed UI/UX leads to a frustrating user experience, which can result in lower customer satisfaction and reduced revenue.

    The cost of UI/UX design can vary based on wireframing, prototype, and final UI/UX design. Experienced business analyst wireframes your product and UI/UX designers turn the wireframe into your BNPL solutions. It approximately takes around 4-5 weeks to get the UI/UX design ready for your app.

    Check the following table to know the cost to design a buy now pay later app.

    ProfileDesigning StageTimeline
    Business AnalystPlanning & Analysis1-2 weeks
    Wireframing & Prototyping3 weeks
    Low-fidelity Wireframe1-2 weeks
    High-fidelity Wireframe2-3 weeks
    UI/UX DesignersApp Designing2-3 weeks
    Prototype4-5 weeks

    It’s important for you to work with experienced UI/UX designers who creates a visually appealing and intuitive user interface, and who ensures that the app complies with relevant regulations and industry standards. Investing in quality UI/UX design helps businesses stand out in a competitive market and provide customers with a positive and seamless user experience.

  4. he Cost Impacting the Location of Buy Now Pay Later App Development

    How expensive it is to make an app depends on the location of the team you hire. The cost of hiring a team for a later app development team varies greatly depending on their location, as different regions have different labor rates and cost of living expenses.

    For example, hiring a development team in the USA or Europe may be more expensive than hiring a team in Asia, where labor rates tend to be lower. However, it’s important to consider factors beyond just cost, such as language barriers, time zone differences, and cultural differences, which impacts communication and collaboration.

    Apart from this, some countries or regions may have different regulations and legal requirements that impact the development process, which affects the overall cost of the project.

    Based on the survey by GoodFirms, here’s a table indicating app developer’s hourly rates in different countries:

    RegioniOS Avg hrsAndroid Avg hrsCross-platform Avg hrs
    Canada90-120 hours80-140 hours90-120 hours
    The USA60-120 hours60-120 hours60-130 hours
    Latin America28-90 hours28-90 hours40-160 hours
    The UK60-75 hours60-75 hours55-75 hours
    Europe35-55 hours35-55 hours30-50 hours
    Ukraine40-78 hours38-60 hours40-78 hours
    South Africa45-80 hours40-80 hours40-80 hours
    India22-90 hours15-25 hours20-30 hours
    Southeast Asia23-55 hours30-45 hours30-45 hours
    Asia23-55 hours20-30 hours25-35 hours
    Australia25-35 hours100-120 hours90-120 hours

    It’s important for you to carefully evaluate all the options and choose a development team that is experienced, reliable, and provides quality work at a reasonable price. However, the development and design methods differ from app to app. But, a well-chosen development team ensures that the project stays on track and within budget, and ultimately leads to a successful and profitable BNPL app.

  5. Choosing the Right Partner for Your BNPL App Development (App Development Company vs. Freelancers)

    Hiring a development company is expensive, as they tend to have larger teams and a more structured development process. However, they also tend to offer more comprehensive services, including project management, quality assurance, and ongoing maintenance and support.

    The minimum requirement of the app development team includes

    • 1-2 project managers
    • 1-2 business analysts
    • 2-3 frontend developers
    • 2-3 backend developers
    • 1-2 designers
    • 1-2 quality assurance analysts

    On the other hand, hiring individual freelancers is cost-effective, as their rates tend to be lower than those of the company that provides later app development solutions. However, working with freelancers is riskier, as they may not have the same level of expertise and resources as a company, and there may be less accountability and communication.

    It’s important to carefully evaluate the pros and cons of each approach and choose the one that best fits your business needs, budget, and development timeline. Ultimately, working with a reliable and experienced team, whether it’s a company or freelancers, helps to ensure that the project is completed on time, within budget, and to a high standard of quality.

    You have an idea about the factors impacting the complete cost of developing this BNPL mobile app. Let’s check the tips to reduce the cost of development for providing a BNPL online payment solution.

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How to Reduce BNPL App Development Cost (5 Tips)

Here are the tips to reduce the cost of BNPL app development. These tips ensure that your app meets your business needs and provides value to your customers.

Tip 1. Choose a reliable and experienced BNPL app development team: Look for an experienced BNPL service provider team with a good track record of delivering quality work. This helps to reduce the risk of costly mistakes and ensure that the project is completed on time and to a high standard.

Tip 2. Clearly define your project requirements: Providing a clear and detailed project brief helps to reduce the risk of scope creep and ensures that the development team understands exactly what is required. This helps to minimize the risk of costly revisions and delays.

Tip 3. Consider a remote BNPL service-providing team: If you are willing to work with a remote team, you often find lower-cost options. This includes working with developers in different parts of the world, where the cost of living and labor costs are lower.

Tip 4. Prototype and test early: By prototyping and testing early, you identify issues and make changes before they become costly to fix. This helps to reduce the overall cost of development by catching issues early in the process.

Tip 5. Plan for scalability: Plan for scalability from the beginning, so that you easily add new features and users in the future. This helps to reduce the need for costly updates and redesigns down the road.

Best Apps like AfterPay

If you are searching about what other apps are like AfterPay, here is a complete list of AfterPay alternatives.

App NameCountry of OriginPlatform Availability
AffirmUnited StatesGlobal
Zip PayAustraliaAustralia
SezzleUnited StatesUnited States, Canada, Australia
SplititUnited KingdomGlobal
LaybuyNew ZealandNew Zealand, United Kingdom, Australia
ClearpayUnited KingdomUnited Kingdom

Frequently Asked Questions About the Cost to Develop a BNPL App Like Affirm and AfterPay

How to ensure that the BNPL app is secure

To ensure the security of your BNPL app, it’s important to prioritize security features such as fraud prevention, encryption, and secure payment processing. Working with a reputable development team helps ensure that your app meets industry security standards.

How much time does it take to develop a BNPL like app?

Buy Now Pay Later like apps take around 6-9 months to develop. The timeline for developing a BNPL app varies widely depending on the complexity of the app and the specific features included. Typically, it takes several months to develop a high-quality BNPL app.

How to create a BNPL app in 7 Steps

Here are the 7 steps to create a BNPL app:

Step 1: For the buy now pay later app development process, conduct market research to identify the target audience and competitors, and market trends.

Step 2: Based on market research, define the features and functionality that your BNPL app will offer, including payment processing, bank account management, and reporting and analytics.

Step 3: You’ll need to choose a development platform, such as iOS or Android, based on your target audience and other factors such as budget and timeline.

Step 4: To bring your BNPL app to life, you’ll need to hire a development team that has experience in developing financial services apps and delivering high-quality work within your budget and timeline.

Step 5: The development team will work on designing and developing the app, incorporating the features and functionality that you’ve defined.

Step 6: Before launching the app, it’s important to thoroughly test and quality assure the app to ensure that it works properly and meets your users’ needs.

Step 7: Once the app is ready, you launch it on the app store and begin marketing it to your target audience through various channels such as social media and digital advertising.

Creating a BNPL application is a complex and time-consuming process, but with the right team and BNPL service provider, create a successful app that meets the needs of your users and grows your business.

How Space-O Technologies Helps You to Build Buy Now Pay Later App

Being a BNPL service provider, we specialize in creating customized and secure BNPL app development solutions that deliver exceptional user experiences. Our experienced app developers and project manager understand the complexities and challenges of building a BNPL application like AfterPay, and we’re here to help you turn your vision into a reality.

We offer end-to-end services that include ideation, design, development, and deployment. So, if you have an idea about later app development, we identify the right features, integrate the right payment gateway, and ensure your app meets all necessary regulations.

Contact us today to learn more about how we can help you build a BNPL application like AfterPay that’s secure, easy to use, and successful.

Bhaval Patel

Written by

Bhaval Patel is a Director (Operations) at Space-O Technologies. He has 20+ years of experience helping startups and enterprises with custom software solutions to drive maximum results. Under his leadership, Space-O has won the 8th GESIA annual award for being the best mobile app development company. So far, he has validated more than 300 app ideas and successfully delivered 100 custom solutions using the technologies, such as Swift, Kotlin, React Native, Flutter, PHP, RoR, IoT, AI, NFC, AR/VR, Blockchain, NFT, and more.

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