The rise of Buy Now Pay Later (BNPL) services, like Afterpay, has revolutionized the way consumers make purchases. With the ability to split payments into manageable installments, BNPL services have become a go-to solution for many shoppers. As the demand for these flexible payment options continues to grow, more businesses are seeking to develop their own flexible payment app like Afterpay.
In this comprehensive guide, we will explore the cost to build a Buy Now Pay Later app, the essential features you’ll need, and the factors influencing the price to create an Afterpay-like app. By the end, you’ll have a clear understanding of how to plan your app development journey effectively.
What is a Buy Now Pay Later (BNPL) App?

A BNPL app allows users to shop today and pay later, typically in installments over weeks or months. This flexibility makes it easier for consumers to manage their finances while making purchases without the burden of upfront costs. Services like Afterpay, Klarna, and Affirm have become increasingly popular as they enable users to make interest-free payments.
BNPL apps provide a seamless experience by integrating with e-commerce platforms and offering various payment methods. These apps also often offer instant credit decisions, enabling consumers to purchase items immediately and pay later.
Why is Developing a BNPL App Profitable?
The popularity of BNPL platforms is skyrocketing, driven by:
- E-commerce growth: More people are shopping online than ever before.
- Millennial and Gen Z consumers: Younger generations are more inclined to use flexible payment methods.
- Retailer adoption: Major retailers are adding BNPL as a payment option, making it an attractive offering.
As a result, creating your own BNPL platform can be a lucrative investment. Developing a Buy Now Pay Later platform cost may vary, but with the right strategy, it can provide an excellent return on investment.
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Why Afterpay Is the Market Leader in BNPL Services

Afterpay has solidified its position as a market leader in the BNPL industry due to several key factors that set it apart from competitors. Here’s why Afterpay continues to dominate the space:
1. User-Centric Approach

Afterpay’s success can be largely attributed to its focus on user experience. The app provides a seamless, easy-to-use platform where users can sign up, shop, and split payments within minutes. The user interface is intuitive, offering a simple way to track installment payments.
2. Merchant Adoption and Partnerships

Afterpay has developed strong partnerships with both large and small retailers across the globe. This widespread merchant adoption has made Afterpay a trusted option for millions of consumers. Retailers benefit from Afterpay by offering consumers flexible payment options, increasing sales and reducing cart abandonment.
3. Strong Brand Recognition

With its straightforward marketing and strong customer base, Afterpay has built a recognizable and trustworthy brand. Consumers are more likely to trust a service that is well-known and backed by reputable retailers.
4. Interest-Free Payments

One of Afterpay’s biggest draws is its interest-free installment payment option. Unlike traditional credit card payments, Afterpay allows consumers to pay in installments without added interest, as long as payments are made on time. This makes Afterpay especially appealing to cost-conscious consumers.
5. Global Expansion

Afterpay has expanded beyond Australia into markets like the United States, UK, and New Zealand, creating a significant global presence. This global reach has helped the platform attract users from diverse regions and increase its overall market share.
In summary, Afterpay’s user-centric approach, merchant partnerships, brand recognition, and interest-free payments have solidified its position as the market leader in BNPL services.
Key Factors Influencing the Cost to Build a Buy Now Pay Later App
1. Platform Selection: Web, iOS, or Android

The platform(s) you choose for your app will play a crucial role in determining costs. Here’s how your platform choice impacts pricing:
- Mobile apps (iOS & Android): Separate apps for iOS and Android require more development resources and time. However, this option provides a larger audience reach.
- Web-based platform: A web-based app can be accessed across devices, but may not offer the same rich user experience as a mobile app.
- Cross-platform development: React Native or Flutter allows you to build for both iOS and Android with one codebase, reducing development time and cost.
2. Features and Functionalities

The price to create an Afterpay like app heavily depends on the features you want to include. Here are some key features that will influence development costs:
- User registration and credit verification: Secure sign-up and ID verification to ensure users can afford the installment plan.
- Payment gateway integration: Secure integration with payment systems like PayPal, Stripe, or credit card processors.
- Installment management: Users should be able to track payment schedules, remaining balances, and due dates.
- Customer support: Offering chatbots, live chat, or help centers to assist users with issues.
- Notifications and reminders: Push notifications for payment due dates, new offers, and other important events.
- Social sharing: Allow users to share purchases or discounts with friends and family on social media.
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3. Design and User Experience (UI/UX)

An intuitive, user-friendly design is crucial for engagement. It should be simple, attractive, and easy to navigate. Key design elements to focus on include:
- Onboarding flow: Users should be able to sign up and start using the app quickly.
- Payment schedule tracking: A clean, easy-to-read dashboard showing payment timelines.
- Real-time data: Ensure users can view their balance, due dates, and purchase history.
Investing in quality UI/UX design could cost between $5,000 and $20,000, depending on the complexity.
4. Backend and Security

A secure backend is essential for handling transactions and storing sensitive user data. Here’s what’s involved in backend development:
- Payment processing security: Use secure payment gateways to handle transactions (e.g., Stripe, PayPal).
- User data protection: Ensure user information is encrypted and stored securely.
- Scalability: Ensure the app can handle increased traffic as it grows.
- Fraud detection: Integrate algorithms to prevent fraud and ensure transactions are secure.
Backend development for a BNPL app can cost anywhere from $10,000 to $30,000 depending on your security and scalability needs.
How Much Does a BNPL App Cost?

Developing a flexible payment app like Afterpay requires considerable investment. On average, the cost to build a Buy Now Pay Later app will range between $50,000 and $150,000. Below is a cost breakdown:
Component | Estimated Cost (USD) |
---|---|
UI/UX Design | $5,000 - $20,000 |
Core Features | $15,000 - $40,000 |
Backend Development | $10,000 - $30,000 |
Payment Gateway Integration | $3,000 - $8,000 |
Testing & QA | $5,000 - $15,000 |
Maintenance (Monthly) | $2,000+ |
If you decide to use an Afterpay clone app development approach, you can cut down on costs and time. Clone apps provide a proven framework, allowing faster development with customizable features.
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Development Approach: In-house vs. Outsourcing
In-house Development

Building an in-house team allows for better control over the development process but can be more expensive. This option is ideal if you want complete customization and high-quality results.
Outsourcing

Outsourcing is a cost-effective option that can reduce development expenses, especially when hiring developers from countries with lower labor costs. However, it may involve challenges with communication and project management.
Ongoing Maintenance and Updates

Once your app is developed and launched, maintenance is critical to its success. Regular updates, bug fixes, and server management are necessary to ensure the app continues to function smoothly.
- Bug fixes: Regular updates are needed to address any issues that arise.
- New features: As user needs evolve, you’ll want to introduce new features and improve the app.
- Scaling: As the app grows, you may need to scale up your infrastructure to handle more users and transactions.
Maintenance costs typically range from $2,000 to $5,000 per month.
Conclusion
Creating a flexible payment app like Afterpay is a lucrative opportunity, but it requires careful planning and a significant investment. The Develop a Flexible Payment App Cost typically ranges from $50,000 to $150,000 based on factors like platform, features, and security. By understanding the necessary features and components, you can efficiently allocate your resources and plan for success.
If you’re ready to bring your Buy Now Pay Later app to life, contact SDLC Corp today. Our expert team is ready to help you build a scalable, secure, and user-friendly app that meets the growing demand for BNPL services.
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FAQs
How Much Does It Cost to Build a Buy Now Pay Later App?
The cost typically ranges from $50,000 to $150,000 based on features, platform selection, and the development team you choose.
What Features Are Essential for an Afterpay-like App?
Key features include payment gateway integration, user registration, installment management, and secure payment tracking.
Can I Build a BNPL App with a Clone?
Yes, you can opt for an Afterpay clone app development model to reduce costs and speed up the development process. This allows for a proven structure with room for customization.
What is the Best Development Approach: In-house or Outsourcing?
In-house development offers more control and customization, while outsourcing is more cost-effective, especially for businesses looking to save on costs
What Are the Maintenance Costs After Launch?
Maintenance costs typically range from $2,000 to $5,000 per month and include regular updates, bug fixes, and scalability measures to support growth.