Zebit-Like BNPL App Development: A Complete Guide

The BNPL market will reach an incredible $9.2 trillion by 2032.

These numbers are real. The payment sector is growing at a remarkable 29% compound annual growth rate from 2023 to 2032. The U.S. market alone has already crossed $100 billion. Building a BNPL app like Zebit puts you right in the middle of this booming sector.

Numbers tell the real story. Merchants who use BNPL services see their conversion rates jump by 20% to 30%. Customers make purchases more than 20 times yearly when BNPL options are available. This data builds a compelling business case.

Building an app like Zebit needs careful planning. The development costs range from $50,000 to $100,000 for core development. Research costs add another $10,000 to $15,000. Testing needs $10,000 to $20,000, while marketing requires $20,000 to $30,000.

This piece will guide you through each step to build your own Zebit-like app. You'll find everything about the business model, technical needs, and compliance rules that will make your BNPL app stand out in this fast-growing market.

Are you ready to revolutionize payment systems and grab your share of this multi-trillion dollar market? Let's begin!

Understanding the BNPL Model and Zebit's Success

The digital world of financial services looks completely different than it did just a few years ago. BNPL services have grown from a small offering into a payment option that customers actively look for.

What is Buy Now, Pay Later?

Buy Now, Pay Later gives customers a short-term financing option to split their purchase payments into installments, usually without interest. This approach differs from credit cards with their revolving balances by offering clear, fixed payment schedules.

BNPL services typically come in three main types:

• Pay-in-4 model: Four equal installments paid over six weeks
• Monthly installment plans: Payments spread across several months
• Pay later in full: Complete payment after a specified period (usually 30 days)

Customers love the straightforward nature of these services. They know their exact payment amounts and due dates. Merchants see higher sales and bigger orders because customers feel better about making larger purchases they can pay off gradually.

BNPL stands out from traditional financing in several ways. The approval process takes just seconds during checkout. Many providers skip hard credit checks, which makes them available to more people with limited credit history. Best of all, customers pay zero interest when they make payments on time.

How Zebit changed the BNPL landscape

Zebit found its sweet spot in the BNPL world by helping people who struggled to get traditional credit. While Klarna and Afterpay went after mainstream shoppers, Zebit built everything around supporting those with poor or no credit history.

Their unique strategy includes:

1. No credit score requirements - Zebit uses proprietary underwriting technology rather than traditional credit scores
2. Integrated marketplace model - Unlike competitors who partner with existing retailers, Zebit created its own shopping platform with over 1,500 brands
3. Extended payment terms - Offering up to six months for repayment versus the typical four installments

On top of that, Zebit created advanced fraud prevention systems for higher-risk customers. This reduced default rates even though they served customers that traditional lenders might turn away.

This smart positioning helped Zebit build a loyal customer base with less competition. Their technology makes credit decisions using multiple data points beyond regular credit scores, a valuable lesson to consider when building a BNPL app like Zebit.

Why now is the right time to build a BNPL app

The BNPL market offers amazing chances for new players to succeed.

Recent data shows that 60% of consumers have used BNPL services, up from 37% in 2020. This growth keeps climbing, especially in markets where BNPL hasn't yet caught on.

Merchants now see BNPL as a must-have rather than just nice-to-have. Cart abandonment drops by up to 35% with BNPL options, so retailers want multiple BNPL providers to boost sales.

The market remains open, with different providers focusing on specific niches. New companies can target particular industries or customer groups with specialized services.

AI and machine learning breakthroughs have cut the cost of building sophisticated credit assessment tools. Startups can now create effective risk models without huge amounts of historical data.

Young consumers keep looking for alternatives to credit cards. They prefer clear payment plans over ongoing debt.

You can build your own BNPL application by learning from Zebit's soaring win while adding fresh ideas to meet today's market needs.

Step 1: Define Your Business Model and Target Users

The success of your BNPL app depends on picking the right business model. You need to know how your app will make money and who it will help before you write any code.

Choose between Pay-in-4, Pay Monthly, or Hybrid

The BNPL world has several proven business models that each bring their own benefits:

Pay-in-4 Model: This model stands as the most popular choice. Customers can split their payments into four equal, interest-free installments over six weeks. The average loan size is $135, and buyers pay 25% upfront at checkout. This setup works great for people making smaller purchases who don't want traditional credit.

Monthly Installment Model: Bigger purchases ($250-$3000) work better with monthly installment plans that spread payments over 6-24 months. These plans often include interest charges, but merchants can help lower rates to boost sales.

Hybrid Approach: Many successful BNPL companies use multiple models together. To name just one example, they might offer short-term interest-free plans next to longer financing options. This setup helps serve different customer needs and creates more revenue streams.

Identify your core user demographics

BNPL users come from all backgrounds, but some clear patterns show up:

Age Distribution: Gen Z (18-25) leads the pack with 61% using BNPL at least once in 2023. Millennials follow close behind, making up over 40% of all transactions. In spite of that, people of all ages use BNPL regularly.

Financial Profile: Users usually keep less money in their accounts, $2,179 on average compared to non-users' $6,638. It also turns out that 71% of BNPL users carry credit card debt, while only 40% of non-users do.

Credit Standing: Most BNPL users have lower credit scores, 45% fall into the deep subprime range, and 16% are subprime. These numbers show how BNPL helps people who might struggle to get traditional credit.

Income Levels: Middle-income earners ($50,000-$75,000 yearly) use BNPL services the most. High-income people use it less since they can easily get traditional credit.

Gender and Ethnicity: Women use these services more often than men do. Black and Latino consumers also use BNPL more compared to other groups.

Building a BNPL app like Zebit means picking the user group that offers the best growth potential based on their buying habits and needs.

Understand merchant vs. consumer monetization

Your money-making strategy depends on who pays for your service:

Merchant-Funded Model: Most BNPL providers make their money from merchant fees. They charge 4-6% per sale, which is nowhere near the 2-3% that credit cards charge. Merchants pay these higher fees because BNPL works: orders are 20-40% larger, sales go up 20% compared to options like PayPal, and cart abandonment drops by up to 35%.

Consumer Revenue Options: Other approaches include charging interest on longer loans or adding late payment fees. These fees stay small and capped to avoid looking predatory.

Value-Added Services: Some BNPL apps make extra money through affiliate marketing, ads, or premium features.

The merchant-funded model leads the market because it matches what consumers want: interest-free payments. A smart mix of different revenue streams often creates the most stable business model.

Pick your money-making approach based on your target market first. This choice will help shape your app's features and technical setup in the next development stages.

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Step 2: Plan the App Architecture and Tech Stack

The success of any BNPL app starts with its technical architecture. Your app should process thousands of transactions at once, make immediate credit decisions, and grow with rising user numbers. Let's take a closer look at the key technical decisions you'll face while developing a BNPL app like Zebit.

Microservices vs. monolithic architecture

Your architecture choice will set how much your BNPL platform can grow. CISIN's internal project data shows mobile apps built with microservices architecture have 35% faster feature deployment and 20% lower long-term maintenance costs than monolithic backends.

Monolithic Architecture:

• Single, unified codebase
• Makes early development and deployment easier
• Testing becomes simpler as developers work in one environment
• Gets complex as the application grows
• Growth means copying the entire application

Microservices Architecture:

• Splits the app into independent modules (user authentication, payment processing, risk assessment)
• Each service grows and deploys on its own
• Supports different programming languages across services
• Better fault handling - other services work if one fails
• Updates and new features roll out faster

BNPL applications work better with microservices. Industry experts say, "For high-growth startups and established enterprises, the decision to build a mobile SaaS solution hinges on one critical factor: scalability without sacrificing security".

The experts also note that "BNPL apps need to scale 10x overnight". A monolithic system is nowhere near capable of handling such quick growth. This makes microservices the best choice for payment platforms looking to grow fast.

Recommended tech stack for scalability

The right technology picks will keep your BNPL app stable even during busy times. Here's what industry standards suggest:

Frontend:

• React Native or Flutter for cross-platform mobile development
• React.js/Next.js for web interfaces
• HTML5, CSS3, JavaScript for responsive design

Backend:

• Node.js or Java (Spring Boot) for core business logic
• Python for risk engine and credit scoring algorithms
• Express.js for API development

Database:

• PostgreSQL for structured financial records
• MongoDB for user profiles and flexible data
• Redis for caching to improve performance

Cloud Infrastructure:

• AWS, Google Cloud Platform, or Azure for hosting
• Kafka or RabbitMQ for handling asynchronous events
• Docker and Kubernetes for containerization and orchestration

Security:

• SSL/TLS encryption for data in transit
• AES-256 encryption for data at rest
• OAuth 2.0 and JWT for authentication

Third-Party Integrations:

• Payment gateways like Stripe or PayPal
• Credit bureaus such as Experian or Equifax
• KYC verification services like Jumio

This stack creates a base to handle complex BNPL platform requirements, including immediate credit decisions and high-volume transactions.

How CISIN helps with mobile app architecture

BNPL app development comes with several technical challenges. CISIN guides teams through these challenges with their specialized knowledge.

CISIN suggests a "Native Core with Cross-Platform Utility approach" for BNPL apps. This hybrid method uses native development for critical features like payment processing and cross-platform technologies for standard features.

Their microservices expertise helps create well-organized services for BNPL apps:

• Payment service to handle transactions
• Customer service to manage user data and authentication
• Installment service for payment plans and schedules
• Fraud detection service using AI and machine learning

CISIN's enterprise architects know how multi-tenant architecture matters for BNPL platforms. "The challenge is managing this shared environment to ensure that one high-traffic tenant does not degrade the performance for others".

The team has completed over 3,000 successful projects and knows how to build secure, scalable financial applications. Their experience helps implement cloud-native, event-driven architectures that support BNPL platforms' unique requirements.

CISIN also helps set up resilient API management and DevOps practices that microservices architecture needs. This creates a foundation ready for the quick growth that successful BNPL platforms experience.

Building an app like Zebit becomes easier when you work with experienced architects. They'll help you avoid costly mistakes that could limit your future growth.

Step 3: Design a User-Centric Interface

Your BNPL app's success depends on user experience design. Users make lending decisions in seconds. This makes your interface the key factor between completed purchases and abandoned carts.

Key UI/UX principles for BNPL apps

BNPL apps just need a different design approach than typical financial or shopping applications. Users interact with these platforms at critical decision moments, often right at checkout. This means interfaces must build confidence instantly.

Your interface must show payment schedules, due dates, and fee policies upfront without extra clicks. Users value transparency more than low interest rates.

Brand colors and logos should build recognition without distracting from the core payment experience.

Making your app accessible to everyone shows your steadfast dedication to inclusive design. Following WCAG guidelines ensures this.

Real-life feedback shows how people interact with your interface. This helps you fix problems before launch.

Visualizing repayment timelines

Payment visualization is the most critical design element in your BNPL app. Klarna's soaring win came in part from its iconic repayment calendar that helped users visualize debt without causing anxiety.

Effective timeline visualization has:

• High-contrast visual breakdown of payments
• Real-time updates showing payment progress
• Clear difference between paid and upcoming installments
• Simple visual indicators for payment due dates

Customers who understand their payment obligations clearly are more likely to complete purchases. Businesses that show BNPL options at checkout saw up to a 14% increase in revenue.

Repayment timelines should appear on product pages and during checkout, not just after purchase. This helps customers make informed decisions before committing. On top of that, it helps to avoid using popups or modals for critical payment information as these can create uncertainty.

Reducing friction in checkout flows

US and EU markets could recover about $260 billion in lost orders through checkout optimization. BNPL apps must prioritize reducing friction at checkout.

Minimize form fields first. Each extra field creates friction that may cause users to abandon their purchase. Ask only for information you need to complete the transaction.

Guest checkout options are crucial. About 63% of online shoppers will abandon carts if they can't check out as guests. Forcing account creation before payment kills conversion.

Mobile responsiveness is essential now. E-commerce purchases through mobile channels will reach 63% by 2028. Your BNPL app must work smoothly on all device sizes.

Display multiple payment options clearly. Studies show 40% of online shoppers have abandoned carts when they couldn't find mobile wallet options.

Trust signals matter most during checkout. Users become more security-conscious when entering payment details. Use SSL certificates, security badges, and clear explanations of your protection measures.

Progress indicators show users where they are in the checkout process. These visual cues build confidence and boost completion rates.

A smooth BNPL interface balances simplicity with necessary information disclosure. Each design decision in your Zebit-like BNPL app directly affects conversion rates and customer satisfaction.

Step 4: Build Core Features of a BNPL App

Your BNPL app's success depends on five key features that keep users engaged and prevent them from looking elsewhere.

User onboarding and KYC

First impressions matter. A quick yet thorough onboarding process makes all the difference. Your app should blend automated KYC (Know Your Customer) solutions to speed up customer verification and give quick approvals.

Here's what makes onboarding work:

• Biometric authentication (fingerprint/face recognition) for faster login
• Document scanning with Optical Character Recognition (OCR)
• Simple sign-up with fewer form fields

Product catalog and cart

Many successful BNPL apps go beyond being payment gateways by including their own shopping marketplace. To cite an instance, Zebit created a platform with over 1,500 brands instead of just partnering with existing retailers.

A good product catalog needs:

• Simple product categories
• Clear pricing without hidden fees
• Quick checkout showing installment options upfront

Note that 72% of consumers abandon their carts because orders seem too expensive. Breaking down costs into smaller installments throughout shopping can boost your conversion rates significantly.

Installment scheduling and reminders

Payment scheduling flexibility is crucial. Users should pick weekly, bi-weekly, or monthly installments that fit their financial situation.

Your payment system should handle:

• Automatic payment deductions on set dates
• Early repayment choices without penalties
• Simple installment breakdown showing amounts and dates

The app should keep customers informed through timely alerts about upcoming payments. A mix of push notifications, SMS, and email alerts for payment deadlines, successful transactions, or failed attempts helps reduce defaults.

Real-time credit scoring engine

Credit assessment sits at your BNPL app's core. Your system needs to check creditworthiness in seconds while customers wait at checkout.

Modern BNPL platforms mix different AI systems for credit decisions:

• Gradient Boosting Models (XGBoost, LightGBM) process financial data with 90%+ accuracy in under 200ms
• Neural networks spot patterns in unstructured data
• Ensemble methods blend algorithms for the best accuracy-speed mix

AI-driven profiling can fill data gaps for customers with limited credit history. FICO's recent launch of FICO® Score 10 BNPL marks the first credit score from a major provider that includes BNPL data, showing how sophisticated this field has become.

User dashboard and notifications

A clean, well-laid-out dashboard is the life-blood of your app's user experience. Isadora Agency's work with FinTech brands shows that smart dashboard design with clear menu options ranks among the most valuable features users want.

Your dashboard should show:

• Payment schedules and remaining balance
• Purchase history and upcoming payments
• Available credit limits
• One-click payment options

Smart communication prevents payment issues. A well-designed notification system can cut default rates by 15-30% in the first year, making it vital for your app's financial health.

These five core features power your BNPL application. Adding them to your development roadmap helps create an app that users love and merchants trust. Working with experienced developers helps tackle technical challenges while you focus on building an outstanding BNPL experience.

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Step 5: Integrate Third-Party Services

A powerful BNPL app needs to combine smoothly with external services. Third-party connections are the foundations of functionality that enable everything from payments to risk assessment.

Payment gateways (Stripe, Razorpay)

Payment gateway integration acts as the financial bridge connecting users, merchants, and your platform. Your BNPL solution cannot function without this connection.

These critical aspects need attention when selecting a gateway:

• Processing speed (users expect transactions to complete within seconds)
• Fee structure transparency (avoid hidden charges)
• Multi-payment method support (credit cards, bank transfers, digital wallets)

Popular options include Stripe, PayPal, Razorpay, and Checkout.com. These providers offer ready-made plugins and APIs for quick implementation. The right payment gateway removes the need for extensive in-house development and allows faster setup with minimal technical effort.

Credit bureaus (Experian, Equifax)

Modern BNPL apps need immediate access to detailed credit data. Credit bureau APIs let your app retrieve consumer or business credit information directly from major bureaus like Experian, Equifax, and TransUnion.

Unified credit APIs that combine data from all three major bureaus through a single connection work better than managing separate integrations with each bureau (which needs distinct technical implementations and vendor contracts). These APIs support both soft pulls (for prequalification) and hard pulls (for formal applications).

Your credit bureau integration should deliver:

• Immediate credit reports and scores
• Public records access (bankruptcies, tax liens)
• Identity verification capabilities
• Fraud detection signals

This integrated approach means a single API call can return a detailed risk profile that has credit scores, tradeline history, and payment patterns.

KYC/AML providers (Onfido, Jumio)

KYC verification remains essential for BNPL apps. Automated Know Your Customer solutions make verification efficient while reducing fraud.

Top KYC/AML providers for BNPL integration include Onfido, Veriff, Ondato, and Shufti Pro. These services verify user identities through document scanning with Optical Character Recognition (OCR), biometric authentication, and database checks.

A good KYC integration authenticates identities accurately and flags fraudulent users who try to use fake IDs. This protection matters since KYC/AML fines often exceed the cost of financial crime itself.

Accounting and ERP systems

Your BNPL app must connect with accounting software like QuickBooks, Xero, or SAP to maintain financial accuracy. These connections allow your platform to:

• Track merchant payouts and user repayments
• Manage subscription-based service fees
• Generate compliance reports for taxation and audits
• Automate financial reconciliation

B2B BNPL solutions especially need Enterprise Resource Planning (ERP) integration to streamline financial and supply chain management.

The quality of your third-party integrations ended up determining your app's reliability. Your priority should focus on building secure API connections with industry-leading providers in each category as you develop a BNPL app like Zebit.

Step 6: Ensure Compliance and Security

Compliance is the foundation of any successful BNPL application. Your app must meet regulatory standards to survive in the financial marketplace.

Truth in Lending Act (TILA) requirements

BNPL providers worked in a regulatory gray area at first. The landscape changed in May 2024 after the CFPB classified BNPL lenders as credit card providers under TILA. Your app must now:

• Break down disputes from consumers and pause payment requirements during investigations
• Credit refunds to consumer's accounts for returned products or canceled services
• Provide periodic billing statements like traditional credit cards
• Give clear account-opening disclosures about fees and pricing using the same format as credit cards

TILA wants to "assure meaningful disclosure of credit terms" so consumers can compare options and avoid uninformed credit use. The CFPB now sees digital user accounts as "credit devices" under TILA definitions, even though BNPL typically lacks finance charges or extends beyond four installments.

PCI DSS and data encryption

Payment Card Industry Data Security Standard (PCI DSS) compliance guards cardholder data environments against breaches and fraud. Essential security elements include:

Business devices need firewalls as their first defense barrier Strong protocols like TLS 1.2+ must encrypt cardholder data transmission AES-256 encryption, tokenization, or truncation should protect stored payment information

Dispute resolution and audit trails

Recent regulatory changes require your BNPL app to have complete dispute resolution systems. Users now have the right to:

Challenge charges for problematic purchases and stop payment during investigations Report account errors within 60 days after statement issuance Cap liability for unauthorized use at $50

Audit trails that document every access attempt to cardholder data are a great way to get evidence during regulatory examinations and customer disputes. These records track both successful and failed attempts.

Step 7: Test, Launch, and Optimize

Testing is crucial before your BNPL app meets real users and handles actual transactions. Good testing helps you avoid fixes that can get pricey after launch and builds trust with users.

Functional and security testing

Your app needs complete payment testing to check if all transaction paths work perfectly. Key testing areas should focus on:

• Underwriting algorithms and edge cases
• Multiple active loan simulations
• Transaction integrity and refund handling

User acceptance testing (UAT)

UAT shows how real customers use your app. A UAE fintech's test revealed that 42% of users quit at the KYC selfie stage. They fixed this by creating a simpler flow that used OCR for ID upload.

Users don't test features - they test what they expect. You should create test scenarios that match real-life situations like declined payments or late installments.

Phased rollout and monitoring

Launch day needs more than just pushing code. A good phased rollout strategy should have:

• App store releases
• Merchant onboarding sequence
• Infrastructure monitoring
• Rollback planning

A U.S. client attracted 4,000 users within 48 hours of launch because they practiced their go-live process thoroughly.

Post-launch updates and analytics

The work after launch involves fixing issues, improving features, and updating compliance. Your analytics should track how users repay, where they drop off, and how they behave to make the experience better. A BNPL provider analyzed repayment patterns by cohort to offer customized interest discounts, which made repayments 22% more timely.

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Conclusion

Building a BNPL app like Zebit demands careful attention at every development stage. This piece walks you through the complete roadmap, from understanding the booming $9.2 trillion market to finalizing your app's launch strategy.

Your choice of business model forms the foundation for everything else. Different customer needs and revenue streams emerge from pay-in-4, monthly installments, or hybrid approaches. The right tech stack and architecture choices determine how well your platform grows over time.

BNPL apps live or die by their user experience. Clear payment schedules, smooth onboarding, and simple checkout flows directly affect conversion rates. Users take just seconds to decide if they trust your platform enough to complete their purchase.

Behind the scenes, technical elements like credit scoring engines, third-party integrations, and security protocols power the entire operation. These components need careful implementation to meet strict regulatory standards while giving users split-second decisions.

Testing isn't just the final step, successful BNPL apps make it an ongoing process. Your platform needs regular updates to keep up with changing regulations, user behaviors, and market conditions.

BNPL services keep gaining ground. Merchants see 20-30% higher conversion rates while customers make purchases over 20 times yearly using these services. Mobile app development company CISIN has helped many businesses tap into this trend by building expandable payment platforms that serve both merchant and customer needs.

Developing a BNPL app needs substantial investment, typically $90,000 to $165,000 for research, development, testing, and marketing. The potential returns make it worthwhile for entrepreneurs ready to create new solutions in financial services.

Your BNPL app can find its market position just like Zebit did. A solid plan, focus on user experience, strong security measures, and flexibility as you grow are key. The next BNPL soaring win could be yours.