The global Buy Now Pay Later (BNPL) market will reach nearly $4 trillion by 2030 - a staggering figure that catches attention.
Building a BNPL app like Jifiti makes perfect sense right now. Since 2011, Jifiti has led the way in creating uninterrupted financing experiences. The BNPL sector's value stands at $37.19 billion in 2024 and experts predict it will reach $167.58 billion by 2032, growing at 20.7%.
Creating an app like Jifiti requires careful planning and technical expertise. Market indicators look promising - BNPL transactions will grow by almost 450 billion USD from 2021 to 2026. App downloads surged 47% in 2022 compared to the previous year. These numbers show how customers increasingly prefer flexible payment options.
BNPL's benefits are easy to spot. Customers don't face immediate financial pressure and can buy more expensive items. On top of that, it helps businesses increase their sales as customers don't have to pay the full amount upfront, which naturally boosts revenue.
This piece walks you through building your own BNPL app by creating mutually beneficial alliances like those Jifiti has with IKEA and Citizens Pay. You'll discover everything in technical requirements and smart approaches needed to launch your successful BNPL platform.
Understanding the Jifiti BNPL Model
Jifiti's approach to payment solutions is different from standalone BNPL providers. The company acts as a technological bridge connecting three key players in the financing ecosystem: lenders, merchants, and consumers.
How Jifiti connects lenders, merchants, and users
The company builds infrastructure that lets retailers and service providers offer financing directly to their customers. The platform creates live connections between these three parties. This solves integration challenges that previously stymied seamless lending experiences.
Jifiti's model is different from traditional BNPL in several key ways:
- Bank-powered financing: Jifiti strengthens established financial institutions to offer their own branded BNPL solutions instead of providing loans itself.
- Seamless merchant integration: The platform embeds consumer and business loan programs at any point of sale - online, in-store, or via call centers.
- Contextual finance approach: Customers see financing options right when they need them. This supports their main purchase intent rather than being the goal itself.
This three-way connection creates a symbiotic relationship. Each party focuses on their specialty. As Yaacov Martin, CEO of Jifiti explains: "retailers sell, financial services finance, and Jifiti connects the system".
Understanding this triangular relationship is vital to merchants wanting to build an app like Jifiti. The platform does more than process payments. It creates an ecosystem where financial services become available exactly when customers need them.
White-label integration and user experience
The white-label approach makes Jifiti unique. Developers creating a BNPL app like Jifiti build technology that stays invisible to end users. Financial institutions can embed credit options directly into merchant checkouts under their own brand, not a third party's.
This white-label functionality provides significant benefits:
- Brand strengthening: Both merchant and lender brands stay prominent throughout the customer experience.
- Customer relationship ownership: Merchants keep complete customer relationships and data ownership.
- Customization flexibility: The solution has configurable components that can be adjusted without building from scratch.
The technical side shows Jifiti's platform as modular and plug-and-play. Building an app like Jifiti requires infrastructure supporting multiple integration methods:
- Virtual cards technology
- API integration
- Ecommerce platform plugins
- Digital wallet compatibility (including Apple Pay)
Jifiti's Tap Now, Pay Later™ technology shows ongoing innovation in this space. Approved loan funds can be added to digital wallets via virtual cards. This creates a frictionless payment experience.
Consumers benefit most from convenience. The BNPL experience flows smoothly with minimal friction - often needing no extra fields beyond standard checkout. A well-built BNPL app delivers this same seamless experience.
Creating an app like Jifiti requires focus on making the lending process invisible yet available. The platform should handle live connections between parties while maintaining consistent branding. This approach sets it apart from many direct-to-consumer BNPL solutions that put their own brands before the merchant's.
Platforms combining seamless checkout with detailed data integration will lead the future of installment lending. The growing consumer demand for flexible payment options creates a significant chance for fintech entrepreneurs to develop white-label BNPL platforms following Jifiti's model.
Own Your Customer Experience
Build a white-label BNPL platform that strengthens your brand and keeps financing invisible to the end user.
Why Build an App Like Jifiti Today
The BNPL industry is booming right now. This makes it the perfect time to develop a BNPL app like Jifiti. The numbers tell a compelling story if you're wondering whether this market is worth your time.
BNPL market growth and user demand
The global BNPL sector keeps growing at an amazing pace. The number of BNPL loans grew by 23% between 2022 and 2023. The total dollar amount jumped 26% during this period. The market valued at $9.50 billion in 2024 will reach $80.15 billion by 2033, with a 27.0% CAGR. Some experts predict the market will hit $23.37 billion in 2025 and grow to about $83.36 billion by 2034.
Users are flocking to BNPL services. Major providers reported 53.6 million consumers took at least one BNPL loan in 2023. This number grew 12% from the previous year. The trend shows up in every age group:
- Gen Z: 72% use BNPL services
- Millennials: 82% use BNPL services
- Gen X: 84% use BNPL services
- Baby Boomers: 51% use BNPL services
Users aren't just growing in numbers - they're using these services more often. Each user took about 6.3 loans per lender in 2023, up from 5.7 loans in 2022. The average yearly spending per consumer rose to $848 in 2023 from $745 in 2022.
BNPL has become more than a way to buy luxury items. People now use it for basic needs - 47% for groceries and 35% for medical bills. This shows how BNPL has become a vital financial tool for millions of people.
Opportunities for fintech startups
Fintech entrepreneurs have a great chance to enter this market now. BNPL transactions make up only 1% of total credit card spending. This leaves plenty of room to grow.
Merchants love BNPL options. These payment solutions help them sell more and increase their average purchase amounts. This creates a ready market of customers for new BNPL providers.
Different regions offer huge growth potential. Asia Pacific leads the global BNPL market with 36.42% share in 2024. North America grows fastest at 15.11%. Markets in Southeast Asia, Latin America, and Eastern Europe remain mostly untapped.
B2B BNPL is the next big frontier. Small businesses just need about $1.40 trillion in financing yearly. Yet 49% of small business owners still use personal credit cards for business. This explains why Crunchbase lists over 650 B2B BNPL startups.
New revenue models look promising beyond traditional merchant fees. Some providers make money through merchant data analytics, customer engagement tools, and digital banking services. Others create shopping platforms in their apps where merchants can advertise products.
Starting a Jifiti-like app today means entering a market that people already trust and use. You can make money while helping consumers manage their finances better.
Step 1: Define Your BNPL Niche and Business Model
Your BNPL app's success starts with picking the right market and revenue strategy. This decision will shape your entire development journey.
Target audience: B2B vs B2C
You need to choose between serving businesses (B2B) or consumers (B2C). Each market comes with its own benefits:
B2C BNPL Market The consumer BNPL market is 8 years old and very competitive. B2C providers make money mainly through merchant fees and sometimes through consumer late fees. The market reaches across age groups:
- 72% of Gen Z, 82% of Millennials, and even 51% of Baby Boomers now use BNPL services
- 75% of current BNPL users say they're very or really happy with their BNPL options
- People earning over $100,000 yearly show 83% satisfaction rates compared to 60% among those earning under $50,000
B2B BNPL Market The B2B BNPL space isn't as crowded but is growing faster:
- B2B BNPL is growing especially fast in UK and European markets
- Businesses can pay later while suppliers get their money right away
- Payment terms usually range from 30 to 90+ days to help with cash flow
- Orders are much bigger, B2B average order values are about seven times higher than B2C
B2B growth is speeding up because businesses want instant, flexible payment options just like they get as consumers. But B2B models need more detailed buyer information and better risk assessment tools.
Choosing between pay-in-4, installment loans, or lines of credit
After picking your market, you'll need to decide which payment structure works best for your goals:
Pay-in-4 Model
- Splits purchases into four equal payments over six weeks
- Works best for smaller purchases under $250
- Most purchases average between $100-$110
- Debit cards handle 80-90% of these transactions
- Creates $15 billion in yearly originations and might reach $90 billion by 2023
Installment Loans
- Perfect for bigger purchases
- Can come without interest or with low rates
- Uses fixed payments over set time periods
- Credit checks are usually stricter than Pay-in-4
- People use these most for electronics (46.8%), clothes (41.7%), beauty items (37%), and home goods (33.6%)
Lines of Credit
- Gives ongoing credit access instead of one-time financing
- Makes repeat purchases easier
- Works like a credit card but with simpler terms
- Can work with virtual cards to reach more stores
- Really useful for B2B where ongoing purchases happen often
Your choice depends on your customers' spending habits, typical purchase amounts, and how much risk you'll take. To name just one example, 56% of BNPL users pick these services because they're easy to use, 48% like flexible payments, and 40.5% want interest-free deals.
Different models also attract different groups. Men with household incomes over $200,000 are big fans - 92% have tried BNPL. Women earning under $50,000 use these services too, with 62% having tried them.
Building a BNPL app like Jifiti means you need to understand these details to create something people will actually use. The choices you make now about your business model will affect everything from tech needs to partnership strategies as you build your app.
Step 2: Ensure Regulatory Compliance from Day One
Regulatory compliance is the life-blood of your BNPL app development experience. Skip this step, and you might face hefty fines instead of celebrating your app launch. The financial nature of BNPL services requires strict adherence to various regulations from day one.
KYC, AML, and PCI-DSS essentials
Financial apps handling user data must comply with specific security standards. These standards are mandatory requirements, not optional extras:
KYC (Know Your Customer) verification helps alleviate fraudulent purchasing risks. This process verifies customer identities so they remain accountable for their actions. Many see this as adding friction, but proper KYC actually protects your business against potential fraudsters.
AML (Anti-Money Laundering) procedures work with KYC to prevent illegal practices. Both connect directly to legislation designed to stop money laundering and terrorism funding through your platform. Your business could face severe penalties without these checks - some reports indicate KYC/AML fines in the banking world can cost more than financial crime itself.
PCI-DSS (Payment Card Industry Data Security Standard) compliance ensures secure card data handling. This standard applies to all businesses processing credit card information, requiring:
- AES-256 encryption for data protection
- Tokenized card storage methods
- HTTPS and SSL protocols on all requests
- Rate limiting and anti-fraud triggers
Many first-time app developers underestimate regional regulatory variations. Each jurisdiction has unique compliance requirements: GDPR/CCPA for data privacy, plus region-specific regulations like RBI/FDI guidelines (India), ASIC (Australia), FCA (UK), and CFPB (US).
Working with legal advisors and compliance APIs
The regulatory environment in fintech changes constantly. A partnership with experienced legal advisors becomes essential. These professionals help:
- Translate regulatory frameworks into practical business decisions
- Design compliance strategies for state-of-the-art technology
- Develop risk management frameworks supporting innovative BNPL models
- Direct multi-state licensing frameworks, exemptions, and NMLS requirements
Legal advisors support all stages, from product design and licensing to mutually beneficial alliances and investor due diligence. They review your digital marketing, onboarding flows, and e-disclosures to confirm compliance.
Legal expertise alone won't get you there. Modern BNPL apps need technical solutions that embed compliance into their architecture. Compliance APIs are a great way to get:
- Digital onboarding solutions that verify KYC details and government-authorized ID cards
- Risk assessment tools that analyze customer IP addresses, email addresses, phone numbers, and devices
- Identity verification frameworks with biometric capabilities and liveness detection for high-risk users
- Continuous monitoring systems that flag suspicious patterns for investigation
Building an app like Jifiti requires detailed AML and KYC procedures from the start of each transaction. Customer information must be accurate, ideally verified through third-party services during sign-up.
Modern fraud methods, including synthetic identity theft, account takeovers, and biometrics hacking, make simple verification not enough. Your app needs unified identity verification techniques, possibly combining biometric verification with liveness detection for higher-risk scenarios.
BNPL's compliance landscape keeps evolving, so your development strategy should stay flexible. As one industry expert notes, "In the fintech ecosystem, speed-to-market and legal risk often travel side-by-side". Adaptable systems let you adjust as regulations evolve.
Navigate Fintech Regulations with Confidence
Partner with experts to implement PCI-DSS standards and adaptable compliance frameworks for global markets.
Step 3: Choose the Right Tech Stack and Architecture
Your tech stack choice makes a vital difference when you build a BNPL app like Jifiti. The technology you pick will shape your launch speed, app performance, and ability to grow with increasing transactions.
Frontend frameworks: React Native, Flutter
Two frameworks lead the pack in cross-platform mobile development:
React Native shines with these benefits:
- JavaScript-based development that web developers know well
- Strong community backing and many third-party libraries
- Hot-reload feature that speeds up development
- Bridge architecture that produces real native components
Flutter brings its own strengths:
- One codebase works for iOS, Android, web, and desktop platforms
- Performance matches native apps through its rendering engine
- Hot-reload feature lets you experiment with UI quickly
- Widgets you can customize for attractive designs
BNPL apps need specific features that might guide your choice. Flutter creates consistent UI/UX on all platforms, which helps users trust your financial app. React Native might work better if you need many payment gateway integrations because of its larger ecosystem.
Backend and database options
Your backend powers all essential BNPL features from credit scoring to processing transactions. Popular choices include:
Programming Languages:
- Node.js - Works great for real-time apps like BNPL with its event-driven model
- Python - Builds secure and quick backends using Django or Flask frameworks
- Java - Provides enterprise features like security, scalability, and speed
Database choice affects how you store user data and transactions:
- MongoDB (NoSQL) - Adapts well to changing data structures in BNPL apps
- MySQL/PostgreSQL (SQL) - Ensures reliable financial transactions with ACID compliance
- Redis - Speeds up frequent queries through memory caching
A UK-based BNPL service improved its performance by switching from monolithic to microservices architecture. Their old setup used EC2-hosted apps with MySQL databases without read replicas, which created problems during busy periods.
Cloud infrastructure and scalability
Modern BNPL platforms need solid cloud infrastructure. Each major provider offers unique benefits:
- AWS (Amazon Web Services) - Full suite with EC2 for computing, S3 for storage, and RDS for databases
- Google Cloud Platform - Excellent machine learning tools for credit decisions
- Microsoft Azure - Top-notch security and compliance features for financial apps
Microservices can boost your performance. One BNPL provider rebuilt its AWS setup using containerized microservices on Amazon EKS. This change brought more flexibility and cut down setup time.
Your system should scale up automatically during busy shopping periods. BNPL apps often see quick jumps in transaction volume, so flexible infrastructure matters.
Smart data storage can save money. One BNPL platform used Amazon S3 with Intelligent-Tiering to move less-used documents to cheaper storage, cutting storage costs by 30%.
Step 4: Build Core Features of a BNPL App
Core features can make or break your BNPL app. The time has come to build elements users will interact with daily after you finalize your tech stack.
User onboarding and credit scoring
First impressions last forever. The best BNPL apps have a simple signup process with minimal friction. You might want to add biometric authentication like fingerprint or face recognition to speed up onboarding and keep things secure.
Your credit decisioning engine needs to balance speed with accuracy:
- Real-time credit bureau soft pulls
- Alternative data credit scoring
- Machine learning approval models
- Identity verification integration
FICO research shows that new credit scoring models with BNPL data can boost approval rates for 'no-hit' applicants by about 30% without increasing delinquency rates. Borrowers who pay back their BNPL loans reliably were almost 30 percentage points more likely to get standard bank loans.
Flexible repayment scheduling
BNPL's main draw is payment deferral, but there's another reason that matters: repayment terms. People like structured and predictable repayment plans that help them handle their money better.
Your app should support different repayment models:
- Pay-in-4 interest-free installments
- Longer-term financing (6-36 months)
- Custom payment schedules
- Early payoff without penalties
Studies reveal 87% of Americans pick BNPL because it lets them spread out payments and makes expensive purchases more affordable. Your app can influence buying decisions by offering tailored installment plans at checkout.
Merchant dashboard and virtual cards
Merchants need to see and control BNPL transactions. A good merchant dashboard provides:
- Real-time transaction monitoring
- Approval rate analytics
- Settlement reporting and scheduling
- Return and refund processing
The right dashboard helps merchants handle transactions, refunds, settlements, reconciliations, and disputes from one place. This makes operations more efficient and reconciliation easier.
Virtual cards are changing the game. These temporary digital cards let users make BNPL purchases anywhere that accepts Visa/Mastercard. Virtual Installment Cards (VIC) tap into credit limits for installment purchases with several benefits:
- Instant issuance for immediate purchasing
- Dynamic spend controls limiting transactions to specific merchants
- Just-in-Time funding for precise transaction amounts
- Seamless integration with mobile wallets
Automated reminders and notifications
Good communication stops missed payments, cuts down on delinquencies, and keeps customers happy. You should set up automatic alerts across multiple channels that:
- Send payment reminders via SMS, email, or in-app notifications
- Cut late payments by up to 40%
- Deliver tailored messages with borrower-specific details
- Include direct payment links for immediate action
These notifications do more than help, they're vital. Automatic payment reminders help borrowers stay on track and reduce defaults.
On top of that, proactive communication builds trust. Systems that can change content on the fly allow tailored messages with specific payment amounts, due dates, and account status. This boosts engagement by up to 50% while reducing borrower questions by 20%.
These core features lay the groundwork for both user satisfaction and business success as you develop a BNPL app like Jifiti. Each part plays a key role in creating a reliable and trustworthy financial tool that works well for merchants and consumers alike.
Step 5: Integrate Payment Gateways and Lender APIs
Payment processors and lender APIs create the foundation of your BNPL app. This vital step links everyone involved in processing transactions.
Popular payment processors: Stripe, Adyen
Stripe stands out as a developer-friendly choice for BNPL integration. Their platform adds multiple BNPL methods through a single API setup. You won't need separate integrations. Stripe supports these popular BNPL options:
- Affirm (US and Canada)
- Klarna (multiple countries)
- Afterpay/Clearpay (available in private preview)
Stripe makes merchant onboarding simple. There's no extra application or underwriting process to begin with BNPL options. Their machine learning algorithms show customers relevant payment methods automatically and boost conversion rates.
Adyen provides complete B2B BNPL options through mutually beneficial alliances like their integration with Billie. Online retailers can give business customers flexible payment terms up to 30 days. Merchants get paid right after shipment. The service works in Germany, Austria, Sweden, and the Netherlands. France, UK and Switzerland will follow soon.
Both platforms excel at global payments. Stripe handles transactions in 195+ countries with 135+ currencies. Adyen links directly to global and local card networks, which leads to better authorization rates and lower fees.
Connecting with banks and credit bureaus
Building an app like Jifiti needs smooth bank connections. Jifiti's model connects lending institutions with merchants through API-driven systems.
Their approach uses "a very simple lending as a service API." Step-by-step guides and embeddable widgets help merchants get started quickly. This setup powers online and in-store financing options without needing merchant POS system integration.
Credit reporting in your app should reflect how BNPL data changes traditional credit scoring. Credit bureaus now include BNPL payment history in their scoring models. FICO has revealed new credit scores with BNPL data. This enables up to 30% higher approval rates for people with limited traditional credit history.
Building a BNPL app like Jifiti needs flexible API connections. Your integration should handle:
- Live credit checks
- Instant approvals
- Virtual card generation
- Cross-market functionality
The best implementation delivers a unified user experience on all platforms. Users see a fully-branded experience from application through payment. This creates a smooth link between lenders and merchants while each brand keeps its identity.
Step 6: Test, Launch, and Monitor Your App
Testing is a crucial step before your BNPL app goes live. This phase just needs careful attention to prevent getting pricey post-launch problems.
Security and performance testing
Your BNPL platform needs testing beyond simple function checks. This phase typically spans 4-6 weeks. The focus should be on three core areas:
- Payment processing validation to catch transaction errors
- Load testing to handle holiday shopping spikes
- Security vulnerability assessment to protect sensitive data
Beta testing and phased rollout
A pilot launch with a limited audience reduces financial risk and normally runs 4-8 weeks. One UK fintech found that 42% of users abandoned the process during KYC selfie verification. They fixed this by implementing simplified OCR for ID upload.
Phased rollouts work better than all-at-once launches. DevOps teams should stay on standby as user numbers grow.
Post-launch analytics and updates
After launch, track these vital metrics:
- Average BNPL loan value
- Application approval percentages
- Delinquency rates
Advanced fraud detection with machine learning can analyze thousands of micro-signals in up-to-the-minute data analysis. On top of that, cohort-based repayment analysis might offer customized discounts that could boost repayment timeliness by 22%.
Note that BNPL now accounts for 9% of total fraud losses in US ecommerce companies. Multi-factor authentication should be implemented with up-to-the-minute fraud monitoring.
Ensure a Flawless Launch
From load testing for holiday spikes to post-launch analytics, let our team build a reliable financial tool for your users.
Conclusion
Creating a BNPL app like Jifiti demands careful planning, technical expertise, and strategic execution. Six key steps are the foundations of a successful BNPL platform, and we've covered each one.
The BNPL market could reach $4 trillion by 2030, making this the perfect time to enter the space. Jifiti's white-label approach gives you a distinct edge by connecting lenders, merchants, and consumers through uninterrupted technology.
Your niche and business model must be clear before any coding begins. B2C and B2B markets each come with their own advantages and challenges. Your choice of payment structure, Pay-in-4, installment loans, or lines of credit, will guide your entire development process.
Day one demands regulatory compliance. KYC, AML, and PCI-DSS standards protect your business and users alike. Legal advisors who understand fintech regulations will help you avoid future complications.
Your tech stack choices will determine your scaling potential. The right combination of front-end frameworks like React Native or Flutter with backend infrastructure creates your platform's technical foundation. AWS, Google Cloud, or Azure provide the scalability you need for handling transaction spikes.
Core features like user onboarding, credit scoring, flexible repayment options, and merchant dashboards come first. Payment gateway integration then turns your app into a working financial tool.
Testing might seem tedious but proves crucial. Security testing, beta launches, and post-release analytics help catch problems early.
CISIN mobile app development company excels at building complex fintech applications like BNPL platforms. Their team knows the technical challenges and security requirements of financial applications, helping direct your development process efficiently.
The BNPL sector changes faster than ever. Your app must adapt to new regulations, user priorities, and tech advances. Notwithstanding that, proper planning and execution will help you build a BNPL solution that serves merchants, consumers, and financial institutions.
Building your own BNPL app takes time, but each step moves you closer to launching a platform that could reshape the scene of payments. The $4 trillion chance is yours to take, start planning today.
