As eCommerce sectors grew unprecedentedly, different eCommerce models were developed for suiting different needs of companies and clients alike. Some models were uniquely developed for specific businesses. And, Buy Now Pay Later App Development is one such seed of the eCommerce as a whole.
Buy Now Pay Later Apps are created specifically for allowing credit purchases to the customers. In a traditional business sense, giving credit seems like a liability. However, there have still been some processes that allowed individuals to purchase items in credit by leveraging something or paying up in installments or other methods.
The development of structural and functional banking and finance systems all around the globe has many notable options for acquiring credits, setting up EMI schemes, and many more. eCommerce sectors, and especially, the Buy Now Pay Later App Development, took it to another level, creating a platform built on the very pillars of credit purchasing and providing customers with the opportunity to buy anything, anytime, even if they don’t have the exact amount for it as they can pay for it later.
Why Is It That Credit Cards Are No Longer The Most Enticing Solution?
We have been reaping the benefits of our favorite source of credit money for quite some time. With the information being hampered by the impediment crew, this alternative would not be the only one available to us. Credit cards have a number of problems, including interest charges, higher rates of processing fees, the requirement to provide personal information upfront before receiving any credits, and other dangers.
According to the statistics, the percentages have declined significantly in recent years, with a significant decrease in credit card debt reaching 4.1 percent in 2019, just before the pandemic.
The Buy Now Pay Later App Development plays an important part in this scenario. It makes it possible for the user to choose from a large number of options. These solutions are designed to provide the greatest possible advantage to consumers through the use of Buy Now Pay Later point of sale loans while also developing a strong relationship with them and encouraging them to make purchases.
What Distinguishes Buy Now Pay Later From Every Other Choice Available On The Market?
In the US, one out of every three e-commerce firms is anticipated to switch to Buy Now Pay Later App Development solutions in the near future. Why? Simple. Buy now, pay later allows consumers to make a one-time payment of a small sum of money or no money at all at the time of purchase, and then pick when they want to make the payments. Perhaps the no-fee goods will put an end to the use of regular credit cards.
With an increase in the number of customers making online payments throughout the world, the BNPL’s market share is increasing. In order to gain more prospective consumers, this model digs its head and leaves imprints on the ground.
It marks the beginning of the growth in the no-fee purchase or the ability to pay in modest monthly payments. This is the era in which we are all moving toward automated payment options that allow us to be more comfortable. Yes, technological advancements have brought us to a point where everything is conceivable with a simple push of a button. And this robust solution is offered by WebRock Media’s Buy Now Pay Later App Development services.
Usual Workflow Of Buy Now Pay Later App Development
If you are developing an eCommerce application that serves common people, it should follow a workflow. The workflow of an application determines how features, panels, and the whole system are meant to work, how each participant contributes and makes the platform connects. Buy Now Pay Later App Development is also decided at the initial stages of the app development process. Here is a brief description of the workflow of a BNPL app.
- The app allows its platform only after the user signs up for the platform. Users will just have to verify their credentials by going through a fairly simple and instinctively fast registration process.
- As they successfully sign up, they can search the app for any specific product or item they require or go through the app recommendations. If something intrigues them, they can proceed to checkout.
- Under the checkout section, they can Buy Now Pay Later option, which will automatically take the customer to the different ways they can pay later or over some time.
- The app pays the merchant or dealer the whole amount, deducting a service tax for using the app platform.
- The customer pays the due amount back through installments for the app’s monthly, quarterly, or yearly schemes.
During Buy Now Pay Later App Development, you need to set up a legal payment structure and support it with safe and secure payment options. This whole workflow is layered with features and intimately linked to a revenue model that allows the app to thrive monetarily in the market.
Revenue Model For A Buy Now Pay Later App Development
As we were just talking about the revenue model, it is just a set of logical and legal rules through which the app can make a profit by leveraging the platform and its services. During the Coronavirus pandemic, eCommerce markets saw a massive surge, and BNPL sales surpassed a whopping 215% by the end of 2020.
A transparent revenue model certainly supported the companies that made the most. Revenue models are based on a few fundamental tactics through which Buy Now Pay Later App Development can have an ROI. Here are a few instances through which fully-functional BNPL apps can make money.
Set Up Fee
A BNPL application can charge businesses and brands to partner with the app o sell their products at the beginning of the agreement. This is considered a setup fee, through which the application can legally charge the client for setting up or featuring their digital store on the app platform.
Late Fee
Since the whole Buy Now Pay Later App Development model revolves around buying first and paying later, there remains a huge risk of the customer not paying. However, through digital payment methods, this can be resisted to some extent, as the user’s bank account is connected to the app, and they can automatically deduct the amount if the account has the fund. To ensure extra caution and protection around the concept of the BNPL industry, it may charge a late fee to the customer for not meeting the due on time.
Monthly Fee
The brands that join hand with the BNPL app can also be subjected to a monthly or a periodical fee. The setup fee could also be divided into small installments of monthly, quarterly, or yearly schemes as the user is most naturally subjected to in such a platform.
Transaction Fee
Buy Now Pay Later App Development can rely on transactional fees alone to make a good chunk of profit. For every transaction on the platform, the app could add a minute percentage to get a dividend back from each transaction. The transactional fee can be charged from the customer’s payment or the company or brand.
Commission Fee
Perhaps, the most obvious way to earn revenue through an eCommerce BNPL application is through commissions. The commission percentages are decided along with the workflow of the platform. It is almost like a service tax that the app takes in return for certain services offered within the platform.
Key Features To Consider During Buy Now Pay Later App Development
The Buy Now Pay Later App Development has to decide on features that allow the app to perform a certain function and follow the workflow previously worked upon. These features help translate the whole workflow into a functional mechanism.
Log In
The first step of the workflow also states the verification and registration of brands and customers separately. The registration process is simple and quick enough for users to access the platform easily.
Featured Stores
Once the customer has signed up for the platform, they can freely surf and go through featured stores or items. These featured stores are partnered brands of the company, and the products are put up for sale. The app only helps attractively facilitate the business.
In-Store Purchases
During Buy Now Pay Later App Development, there are different ways of searching for brands and products are included. Similarly, the purchases also have a different process. When users want to buy products from a particular store partnered with the app, they visit their digital store. On finding the specific brand and product, they can make in-store purchases through the app platform.
Account Management
A modern-age app has the necessary algorithms and automation processes to store data and protect it. Each platform user will have their data stored under their account and the app platform. The account details are important for the customer and partnering brands. They can access these data, manage some extent of it under the account management or settings panel.
Interest-Free EMI
EMIs have revolutionalized the way we used to buy products, especially heavy-duty items and products with a higher price value. Buy Now Pay Later App Development also adheres to the blessed opportunities of an EMI scheme. Lately, interest-free EMIs are making life easier for many buyers, while sellers can also sell their products through this dynamic process at a greater rate. Under this system, if the customer pays the EMI on time consistently, they will be saved from paying an additional interest charged on EMIs for not paying the whole amount right away.
Reminders
Every application today has to include some sort of reminders or notification option, which allows it to communicate with users in real-time. Every update or development on the platform or about certain order or action is presented to the users by the app platform via notifications.
Automatic Deductions
The best thing about Buy Now Pay Later App Development is that the digital payment option reduces the risk of missing out on payment on both sides. As the platform ensures the user can pay later in installments, the app also asks the user to link their bank accounts so that the amount can be deducted automatically from their account. This assures the seller to worry less about receiving their dues and saving the customer from the late fee if missed the due date.
Advanced Payment
Even if customers visit BNPL platforms to get an affordable and reliable option for buying goods through installments, sometimes, they can choose to pay the due amount before the due date when they have the money for it. Buy Now Pay Later App Development has to ensure an advanced payment option, which will allow the customer to pay the due amount before the due date arrives.
Rescheduling Payments
To make things even easier for the customers, the app may also have an option for rescheduling payments. In this way, the user can set the due date, and the app will deduct the amount per the schedule. They can reschedule the payment option anytime they want if the app allows it at the time.
Refunds
Buy Now Pay Later App Development should also include a refund option. There can be many reasons accounted for initiating a refund. However, like the EMI’s being automatically deducted from the app, it should also transfer refunds directly to the user account.
Conclusion
Buy Now Pay Later App Development is not different from other app development in terms of security. As an application that engages in financial transactions between different platform parties, it must ensure that the transaction panels are safe enough to host the process. If all these things are put in the right order and manner, a BNPL app will be ready to be put out in the market.