Buy Now, Pay Later (BNPL) has revolutionized the retail and fintech industries by offering consumers the flexibility to split payments over time, interest-free. One of the most prominent players in this space is Tabby, a Middle Eastern BNPL app that allows shoppers to defer payments while helping merchants boost conversions and average order value.
As businesses look to tap into this growing market, the question arises: How much does it cost to build an app like Tabby? This blog breaks down the entire cost structure, development stages, features, and timelines to give you a complete understanding.
Why build an app like Tabby in 2025?
BNPL services have gained massive traction among e-commerce and retail businesses. According to Statista, the BNPL market is expected to surpass $3.5 billion by 2026, with high adoption rates in both developed and emerging markets.
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Key reasons to consider developing a BNPL app
- Changing consumer habits – Millennials and Gen Z prefer flexible, interest-free payment plans.
- High merchant demand – Retailers benefit from increased cart size and reduced cart abandonment.
- Global growth potential – From the U.S. to Southeast Asia, BNPL is expanding rapidly.
Moreover, in emerging markets, BNPL offers unbanked users an opportunity to shop and pay later, creating financial inclusion.
Key Features of an App Like Tabby
A BNPL app should strike a balance between convenience, security, and usability. Here’s a list of essential features your development team should include:
1. Real-Time Credit Checks
Instant eligibility scoring ensures the user can responsibly use BNPL services. Based on credit score, purchase history, and past repayments.
Key Elements:
Soft credit checks
Internal behavioral scoring
Integration with credit bureaus (e.g., Experian)
2. User Registration & Onboarding
Allows users to sign up using phone numbers, email, or social media accounts. The onboarding flow should be quick, secure, and intuitive with minimal friction.
Key Elements:
One-time password (OTP) verification
Optional biometric authentication
Pre-fill fields via Google/Facebook logins
3. KYC & Identity Verification
To comply with AML (Anti-Money Laundering) and KYC regulations, users must upload identity documents, which are verified via third-party services.
Key Elements:
Government-issued ID submission
Real-time face scan/selfie capture
Auto-verification through APIs like Onfido or ShuftiPro
4. Installment Payment Options
Lets users split payments into 3 or 4 interest-free installments at checkout. Users can choose plan duration before confirming payment.
Key Elements:
Choose split option (3, 4, or 6 payments)
Auto-debit on due dates
“Pay early” option
5. Merchant Dashboard Integration
Merchants access a separate dashboard to manage BNPL payments, track user behavior, refund requests, and payment status.
Key Elements:
View sales made via BNPL
Refund initiation
Integration with POS and eCommerce platforms
6. Order & Repayment History
A dedicated section to track purchase history, due payments, paid amounts, and upcoming installment dates.
Key Elements:
Visual timeline of payments
Download invoice button
“Pay now” and “Auto-debit on/off”
7. Push Notifications & Reminders
Send users reminders for payment due dates, promotions, new merchant partnerships, and cashback offers.
Key Elements:
Scheduled reminders for each installment
Customizable alerts (SMS, Email, Push)
Smart notifications based on behavior
Cost Breakdown by App Complexity
App development costs vary based on the scope and complexity of the app. Here’s a breakdown:
| Tier | Basic MVP | Mid-Level | Full-Scale |
|---|---|---|---|
| Cost | $30K – $60K | $60K – $120K | $150K – $250K+ |
| Timeline | 3–4 months | 5–8 months | 9–12 months |
| Core Features |
|
|
|
| Compliance | KYC basic (manual) |
|
|
| Integrations | 1 Payment API |
|
|
| Security | Standard encryption | Tokenization |
|
| AI/Analytics | — |
|
|
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Key Factors That Influence Development Cost
Understanding the factors that impact the final cost helps you budget better and avoid unnecessary overheads.
1. Feature Set
- More features = more time and testing.
- Adding AI-based fraud detection or dynamic credit scoring will increase complexity.
2. Platform Choice
- iOS and Android apps built with Flutter or React Native can save time via cross-platform development.
- Web dashboards for merchants and admins are typically priced separately.
3. Third-party Integrations
- Payment gateways (Stripe, Razorpay, Tap)
- KYC & AML APIs
- SMS/email notifications (Twilio, SendGrid)
4. Security & Compliance
- BNPL apps need strong data encryption, GDPR, and PCI DSS compliance.
- Integration of tokenized payment methods also adds to the cost.
Tech Stack Required for an App Like Tabby
The right technology stack ensures your app is scalable, secure, and high-performing.
1. Frontend Technologies
Flutter
React Native
(Ideal for cross-platform mobile app development)
2. Backend Technologies
Node.js
Python
(Powerful for handling business logic and API integrations)
3. Database Options
MongoDB
PostgreSQL
(Support for both structured and flexible data storage)
4. Payment Gateways & APIs
Stripe
Razorpay
Tabby API
(Facilitate seamless checkout and split payments)
5. KYC/AML Verification Tools
Onfido
ShuftiPro
(Used for automated identity checks and compliance requirements)
Monetization Strategy for a BNPL App
Creating a successful BNPL app is not only about seamless user experience and tech excellence it also needs a strong revenue model to ensure long-term profitability. Tabby and other BNPL leaders follow a combination of monetization strategies that balance user acquisition, merchant partnerships, and platform sustainability.
1. Merchant Transaction Fees
BNPL apps charge a commission (typically 2–6%) from merchants for every successful transaction.
Since these apps increase conversions and average order values, retailers are willing to pay this fee.
2. Late Payment Penalties
While interest-free for on-time payments, users may incur late fees if they miss due dates.
This serves both as a revenue stream and a behavioral incentive.
3. Affiliate Commissions & Promotions
Partner brands often run sponsored deals or priority placements inside the app.
BNPL apps earn revenue for featuring or driving conversions for such promotions.
4. Interest on Long-Term Plans
While short-term plans are interest-free, extended payment options (6–12 months) may include nominal interest rates, creating an interest-based income.
5. Data Monetization & Analytics
- With user consent, apps can provide anonymized consumer trend data to merchants or product research firms for a fee.
6. Subscription Plans for Merchants
Offer premium dashboards, analytics, and fraud tools as part of a SaaS subscription model for retailers.
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How to Choose the Right Development Partner
Your choice of a development partner directly influences the quality and security of the product.
Key Criteria
- Proven experience in fintech app development
- Expertise in compliance, payment integration, and data security
- Clear communication and agile methodology
- Offers post-launch maintenance & support
Conclusion & Next Steps
Developing a BNPL app like Tabby in 2025 is not just feasible—it’s a profitable move if executed correctly. By partnering with the right Android app development company, choosing the right features, tech stack, and development team, you can create a robust, secure, and scalable payment solution that meets market demand and user expectations.
Ready to bring your BNPL app idea to life? Contact SDLC Corp for a Free Consultation.
FAQ'S
How Much Does It Cost to Build an App Like Tabby?
Depending on complexity, $10,000 to $15,000+ is a realistic range for Basic to full-scale apps.
Can I Integrate BNPL Features Into an Existing App?
Yes, you can add BNPL functionality to your current app using APIs and SDKs.
Which Region Is Most Cost-Effective for App Development?
India and Southeast Asia offer experienced developers at affordable hourly rates of $20–$60.
What Is the Revenue Model of BNPL Apps Like Tabby?
Revenue is generated from merchant transaction fees, late penalties, and interest on extended plans.
Is It Mandatory to Comply With Regulations Like PCI DSS?
Absolutely. Handling sensitive payment data requires PCI DSS, GDPR, and KYC/AML compliance.
How Long Does It Take to Build Such an App?
Anywhere between 4 to 9 months, depending on features and team size.
Do I Need AI or Machine Learning for a BNPL App?
It’s optional but beneficial for credit scoring and fraud detection in later stages.
Can I Scale the App to Other Countries?
Yes, with multi-language support and local payment integrations, global expansion is possible.
