The impulse to order that one product, book the special concert ticket, or try one dish when we see it and know that we have next to null cash will never change until humankind exists in the world. Technology and trends may come and go, seasons may change, but the battle between the brain and the heart will never stop in these scenarios. But thanks to the new banks, also known as internet-only financial services that have got our backs to meet the soul-crushing needs even.
Our blog’s main topic is a pay later app, Afterpay, that’s being a one-stop-shop for a multitude of issues regarding all the payment needs.
Before we kick start with what the Afterpay app is and how to develop an Afterpay clone app, let’s be thick with what pay later apps and how they work.
Buy now, pay later apps defined
Pay later, also called the “Buy now, pay later”, is a solution for POS financing. The later pay apps let customers choose a financing plan and pay in installments without them having to pay the entire cost upfront. Mainly, these services are carried out by third-party providers, which will manage the installments.
You might have a question lurking there about how different are these from credit cards. Of course, a credit card is not a bad option until you see the high interest rates. But these BNPL are emerging because of the considerably less hefty rates they charge, and the not-so-necessary option of possessing a credit/debit card already of some apps makes it more welcoming for the younger generation.
Having known the gist of the app, let’s look into Afterpay, the crux of our blog, in detail.
What is Afterpay?
Afterpay is a BNPL platform that makes it possible for customers to buy something instantly and receive their goods and pay for them later in fortnightly installments. Founded in 2015, this Sydney-based company lets customers buy anything from apparel, makeup to medicines and even book flights. Though the business started in Australia, it is now widespread in UK and US markets with over 8.5 million active users. In just New Zealand and Australia, it is available approximately at 10,000 individual shops.
It acts as an intermediary platform between retailers and customers by paying the retailer at front for the goods, and then the customer will pay back the app. The customer needs to commit himself to make payments every two weeks, failing which the app will charge a late fee. Since it is a tie-up between the retailers, it charges fees from the merchants who offer this service.
Additionally, what makes the app different is that, unlike other BNPL apps, it doesn’t do an initial credit check and neither does it start with an in-depth investigation. The responsibility is pushed to the customer to decide whether they could afford it.
How does Afterpay work?
A customer should sign up for creating an account and hold a credit or debit card and must be eligible to enter into a legally binding contract. By providing a verifiable email address and phone number, the customer’s account gets verified to prevent creating multiple accounts.
Customers can then generate a temporary barcode that will show the available spend when making purchases. However, the first installment of 25% should be paid by the customer through their card.
Once the first installment is paid and the customer checks out, the retailer will ship out the order. The app then drafts three equal payments automatically for the remaining balance from the linked card. However, setting up automatic payments or manually making them before the due date is up to the user.
Since there is no interest fee, the only fee that a customer will pay apart from the installments is the late fee, which is implied on them for missing out on scheduled payments.
The intrinsic worth of Afterpay
Shoppers can spread out payments over time, making it easier for them to pay back, especially if it is something expensive they have purchased.
When a credit card can make even the low-price product more expensive, having an interest-free payment transaction is definitely a perk.
Since there is no credit check, there wouldn’t be any reporting business to the credit bureaus. Bad credit or not, that doesn’t count when the customer signs up for the app.
Why should you consider developing a BNPL platform like Afterpay?
A promising future- The global BNPL platforms market is expected to reach US $33,638.3 million at the rate of 21.2% between the years 2020 and 2027. This trend is only going to keep accelerating forward, and people are becoming aware of the advantages it is offering. In order to take part in this trend, many online stores have started implementing this service now in their business.
Increased user experience- Delivering a positive experience and reliability to customers can promote loyalty, the customer retention rate will increase, and it enhances your brand image and increases sales. Since you will offer the flexibility to shop and pay later just as they wish, you will be giving them the best shopping experience, and you will get repeat customers.
Millennials’ attraction- The younger generation, like millennials, has changed the picture of digital payments. As they are reluctant to credit and debit cards, the BNPL platforms are becoming their preferred choice. Offerings like next to null interest rates, no violent situation, and flexibility to payments check off all their boxes. By implementing this, you can achieve better user traction among them.
If you are up for the game but don’t know how to commence the development stages, then fret not, as Appdupe has got you covered with the Afterpay Clone app. With features and functionalities that go hand in hand with the trend and choices, this ready-made solution will get you nowhere but to the top of the BNPL apps market!
What are you still waiting for?
The world is changing now, along with the drifts of technologies. More people are opting to buy now, pay later platforms than ever. If your vision is to attract a global audience, then here’s your call. Grab the chance.
At AppDupe, we know that our customers are Entrepreneurs and keeping them succeeding is what will make us stronger. So, we promise you, Life Time Updates free of charge. Yes, we know that Apple and Google keep coming out with new versions of their mobile OS's and other companies we clone from also keep updating their features and UX to stay up-to-date. We will take care of that for you, leaving you to do what you do best, Win!
Is this legal?
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