How to Develop a BNPL App like Klarna: Essential Guide

Take a deep dive into this essential guide about how to develop successful buy now pay later apps like Klarna. Double your ROI and conquer the fintech market.

By Paresh Mayani

Last updated on: June 6, 2024

Essential Guide to Develop Buy Now Pay Later Apps like Klarna

“Instant gratification”

You must be thinking this is a Fintech blog, but why instant gratification?

Instant gratification is what you feel when you buy a thing – the sudden feeling of happiness or accomplishment if the “thing” you purchased was long awaited. But the unavailability of material resources(money) distanced your joy.  BNPL apps like Klarna have reduced the distance between your desires and happiness, providing you with instant gratification.

Along with instant gratification, which is a psychological need, BNPL companies have made affordability convenient for everybody. The range starts from anyone going to college dreaming of buying a pair of shoes or any outfit from “Zara” to whether you are a working professional trying to purchase a home necessity like electronic appliances.

Anyone can use BNPL apps like Klarna to purchase any product. Competition says there are many BNPL apps in the market. Still capturing the majority of the European market and now successfully making its mark in the USA, Klarna is making affordability convenient and simultaneously increasing the purchasing power of the people.

Let us dive into the world of BNPL apps like Klarna and learn how you can get an app like Klarna.

What is BNPL?

A Buy Now Pay Later App is as the name suggests. Buy anything you want and pay later according to the payment models. Some allow you to pay later in 4 easy installments within 15 days or in monthly installments. Unlike credit cards, these payment modes don’t incur any interest, keeping user convenience and user experience on higher grounds.

How Does it Work?

How Does BNPL Application like Klarna Works

Simply speaking, a Buy Now Pay Later (BNPL) model is a credit facility or soft loan that lets the user complete the purchase and pay later, something similar to a credit card. However, there is a difference between credit cards and BNPL models.

One, the amount can usually be broken into small interest-free installments.  Second, a down payment of the first installment at the checkout to complete the purchase. The rest of the payment can be made in set intervals. Late payments incur penalties and affect the credit scores of the user.

Key Features of a Buy Now Pay Later App

As we have understood about BNPL apps, now it is time to add the features to your app. When developing a buy now pay later app, keep in mind features like repayment facility and user convenience that alter the user experience. Other features to add in your BNPL app can be:

  • Terms of Credit

    The terms of credit vary for different vendors. BNPL apps like Klarna have different modes of payment of credit; the most popular one is Pay in 4, i.e., pay in 4 installments or Pay in a few days or in months.

  • User Convenience

    The instant credit facility makes it convenient for users to take the purchase home and pay later. Other than that, the different payment modes offer user convenience. This is different from the traditional loan facility, which involves a whole process of applying, filling in information, and getting permission.

  • The Purchasing Limit or Purchasing Power

    The purchasing limit again depends on the vendors. For Klarna, purchasing power is determined on a case-case basis. Some BNPL apps offer a limit of $20000 as well. 

  • Repayment Frequency

    The repayment frequency is set for a fixed interval after a time. The user has the option to pay in set intervals of days or monthly installments, but the product seller gets the entire payment upfront. The different payment modes enable users to pay the amount in installments, making the repayment process more manageable.

  • Multiple Payment Options from Multiple Gateways

    Sometimes, it is not just about payment. Linking the payment gateway provides more convenience to the customers. By integrating multiple payment gateways like credit cards, digital wallets, or bank transfers, you can cater to a bigger target audience.

Features like Flexible payment plans, Tracking purchases, Interest Rates & Fees, Customer Support, Security, and Integration with e-commerce are in detail in the exclusive blog “Guide to Key Features of BNPL Apps.

Ready to Supercharge Your Buy Now Pay Later Apps like Klarna With the Latest Features

Top BNPL Apps Across the Globe

The map shows the presence of various buy now pay later apps in different regions. Klarna is a Swedish app that has gained popularity across the globe. It is among one of the growing BNPL apps in the USA, other than Affirm and Uplift.

Top BNPL Apps Across the Globe, which includes Klarna, affirm, tamara, tabby, uplift, etc.

A detailed blog on the “Top BNPL Apps” covers all the popular buy now pay later apps that are customers’ top choices.

How do Buy Now Pay Later Apps Benefit Your Business Model?

In a survey by Statista, it was found that the buy now, pay later option is most prevalent in Europe, Australia, and New Zealand. However, younger people in North America are also using BNPL apps, such as Klarna, especially when shopping for apparel and accessories. According to recent polls, Millennials and Gen X prefer apps like Klarna when they shop online.

  • Better Reach

    BNPL apps target a broader customer base. However, targeting the younger generation is a strategic move for those who are more willing to pay in a flexible payment mode. Due to the desire to keep up with the latest trends and be relevant, youth primarily target the apparel and accessories categories.

  • Higher Conversion Rates

    The availability of flexible payments in BNPL apps has increased conversion rates by up to 20%-30%, and customers prefer these apps. The simple reason for higher conversion is affordability, which makes it harder for the customer to return empty-handed, thus shooting up the conversion rates. It is among the key features of a BNPL app like Klarna. You can read the detailed guide on buy now pay later app development to get an idea about the features, the development process, and everything involved.

  • Repetitive Customers

    As the benefits go on and increased conversion rates establish their authority, the repetitive customers are another benefit that BNPL apps offer. The easy pay options attract a customer base that is young and repetitive. Rewards and offers engage the customer. The irresistible offers and rewards make the next purchase more accessible, and the customer is bound to purchase again due to instant gratification. Businesses offering BNPL services are counted to make more sales and register repeat customers.

  • Opportunities

    Investing in BNPL app development not only gains you higher conversion rates and repeat customers but also increases your chances of innovating and becoming an industry pioneer in new trends.

  • Growing Global Presence

    Now, BNPL services are present in 6 continents and countries like the USA, Sweden, India, Australia, New Zealand, Brazil, Colombia, and many other Middle Eastern countries and African countries, making it a global presence.

Impact of BNPL on User Engagement

By offering consumers flexibility, convenience, and affordability in their purchasing decisions, BNPL has become a powerful tool for driving user engagement across various industry verticals.

BNPL services encourage impulse buying, increased conversion rates, and repetitive customers by removing financial barriers at the point of sale. With the option to pay for purchases in installments, consumers are more likely to end up buying more products. This leads to higher engagement on eCommerce platforms and mobile apps.

Moreover, BNPL apps foster a sense of trust and loyalty among users by providing transparent pricing, seamless checkout experiences, and responsive customer support. A seamless experience builds their confidence in a brand and makes BNPL a success.

Personalized experiences and targeted promotions are another feather in the buy now pay later software hat. By analyzing customer purchase patterns, BNPL apps recommend custom-made personalized choices to the customers. The recommendations are according to individual preferences, which in turn fuel the impulse buying process, making the whole BNPL experience more engaging.

Quick Guide to Klarna App

When working on a BNPL app like Klarna, it becomes mandatory to know something about the Klarna application. Here are some details about it:

What is Klarna?

Klarna is a secure and speedily growing BNPL payment option. Klarna, which was founded in 2005, has prepared the way for success. The leading BNPL solution now controls the payment applications market. It is well-liked by both Android and iOS users and is doing well in the market.

How Does Klarna Work?

Klarna makes it easy to pay for any kind of purchase right away, whether you prefer to shop in-store or online. Your purchase price is divided into four equal, interest-free installments. The cash can be easily repaid subsequently without any complications.

Installing the Klarna BNPL app on your phone is free. It is, therefore, also known as a mobile point of sale (mPOS). Thus, you only need to click a few times to handle your short-term financing choice. You can ask your custom mobile app development services provider to offer you services like those available in the Klarna app if you want to build a buy now pay later app like Klarna.

Why is Klarna Popular?

The greatest thing about the Klarna app is that it has in-app stores for everything from cars to cosmetics. Consequently, around 2 million transactions a day are made using Klarna. BNPL Apps give you the convenience of using anything from anywhere. With your phone, you may shop from your preferred retailers whenever you want. Therefore, you don’t have to search for shopping applications on your own.

BNPL apps like Klarna offer an extensive list of store directories broken down into categories. Furthermore, you can now access it on your desktop by using the Klarna Chrome extension. As a result, it even resolved the installation issue.

Besides that, Klarna’s promotions and benefits easily draw clients. It enables users to sign up for a free rewards club membership and get points for purchases. Consequently, Klarna captures the majority of the market.

Let’s Get To The Core: How Do You Develop A BNPL App Similar to Klarna?

While developing any BNPL app like Klarna, you need to make sure to follow the steps to development, the budgeting while developing, knowledge of the tech stack, and the required tools for the development phase. Let us start with the steps to develop.

Steps to Develop a BNPL App Like Klarna

Steps to Develop a BNPL App Like Klarna

  1. Product Discovery Phase
  2. System Analysis & Design
  3. Development Phase
  4. Testing Phase
  5. Launch, Support, Deployment & Maintenance
  • Product Discovery Phase

    Any business idea always requires initial planning and information gathering. It becomes imperative to understand the market trends for the idea, in this case, a BNPL app like Klarna. Here, you need to understand your target audience, their purchase behavior, patterns, and the budget range; you will have to play in between that range to be a success.

    The following vital thing is competitor analysis. When you understand what the competitors are offering, then you can identify what values your brand will bring to the table and what solutions it will offer. All the information gathering helps you draw out a rough outline. The information lays out a conceptualization of your application, which can be developed as an MVP and finally transformed into a distinct product.

    Let’s summarise a few points:

    • Researching Market Trends
    • Customer Purchase Patterns and Behavior
    • Target Audience
    • Conceptualization
    • Value Offering and Problem Solution

    It is wise to develop your MVP in the initial stage to get faster time to market. Consult MVP development services to get your BNPL MVP and step into the market with a bang.

  • System Analysis & Design Experience

    This step is about identifying the gaps between the ideation and conceptualization processes. It is about going deep into the system software. This step comes when you have mapped out the system requirements.

    Deciding the UX/UI of your product/solution can never be an afterthought. It is in this phase you work with designers to finalize the look and feel of the product. The color palette, overall theme, aesthetics, and other things help reduce the conflicts later.

  • Development Phase

    The project’s code can typically be created in sections thanks to the segmentation of development tasks. Writing code in sections allows for more precise evaluations and minimizes delays and disruptions. Having tracking tools in place at this stage of software development is crucial for keeping an eye on the project’s advancement.

    Security is another section that needs to be airtight as BNPL apps deal with financial information and transactions. The sensitive information demands an extra security layer to ensure optimum security from the developers.

  • Testing Phase

    Once the development and coding are done, the testers come into the picture. Testers and QAs work on the completed project so they can test the application for any bugs. Any bugs in the application or any glitches while using the application are reported as issues and given back to the developers to sort them. Again, the app is tested and checked for bugs. Once testers and QA tests the buy now pay later software, it is ready for the deployment phase.

  • Launch, Support, Deployment, & Maintenance

    After the code development and bug detection comes the launch of the buy now pay later app. After launch, the app is available on the respective platforms for customers. Customer feedback is incorporated to make the app better and to ensure a seamless user experience. Post-launch maintenance not only upgrades the product but also keeps you updated with the latest ongoing trends. You can ask the buy now pay later app development company while discussing whether or not they provide post-launch support.

What is the Cost of Developing a BNPL App like Klarna?

Listed below are factors that influence the cost of a buy now, pay later app:

  • Features of the product
  • Design of products
  • Cost of the development team
  • Project magnitude and complexity
  • Technology stack
  • Number of project members
  • Duration

The main element influencing a project’s cost is the hourly rate of developers. It varies depending on where you hire the developers. For instance, if you hire mobile app developers in India, the cost to develop a BNPL application is around $40,000-70,000. But for the same app to be developed in the USA, the cost might rise to $150,000-300,000 in the USA. A simple reason for this is the cost of living standards vary from place to place. There might be a difference in cost between an Indonesian developer and a Swedish developer.

Prerequisites for Development – Tech Stack

A robust tech stack will provide a solid basis for your Fintech BNPL app. Choosing the right technology stack is essential. The essential technologies for your Fintech application are listed below. Let’s find out:

Platform Tech Stack, Tools, and Frameworks
Native App Development Kotlin, Objective C, Swift
Hybrid App Development React Native and Flutter
Frontend Angular Or React JS, Typescript
CMS Strapi, Storyblok, Contentful
Backend Java, Python, .NET, Node.js
Database MongoDB, PostgreSQL or MySQL for data storage.
Cloud and DevOps AWS, Azure, Google Cloud, Docker, Kubernetes
Analytics MixPanel, Google Analytics
Notifications Firebase, One Signal
Code Review and CI/CD SonarQube, Codemagic, Gitlab, GitHub, BitBucket
Payment Gateway Stripe, Braintree, PayPal, Razorpay
Modern Tools Generative AI, OpenAI, Large Language Models, Machine Learning

How can AI and ML be Implemented in Buy-Now-Pay-Later App Development?

AI and machine learning (ML) hold significant potential in revolutionizing Buy Now Pay Later (BNPL) app development, offering innovative solutions to enhance user experience, mitigate risks, and drive business growth.

Credit defaulting is a significant challenge that the BNPL industry is suffering. Many users take loans from multiple BNPL apps and don’t repay the debt. Hence no debt-recovering mechanism. Here, AI can be of great help in developing a recovery mechanism. By analyzing user behaviors and applying ML algorithms, AI can help assess creditworthy candidates, assist BNPL in identifying potential defaulters, and take checking measures at the correct time. Another great way to ensure your buy now pay later software is in safe hands is to hire mobile app developers who have pro skills in integrating AI with fintech apps.

Among other benefits of integrating open AI in mobile app development is you can enhance user engagement and retention in BNPL apps through personalized recommendations and predictive analytics. By analyzing user interactions and transaction data, machine learning algorithms can anticipate user needs and preferences, delivering targeted promotions, product recommendations, and reminders tailored to individual users’ interests and buying habits.

Moreover, AI-powered chatbots and virtual assistants can provide real-time customer support and human-like query resolution. AI-powered chatbots can guide the customers regarding the BNPL app queries or issues and resolve them to better the user experience.
Does your BNPL app deliver Next-Generation Mobile Experiences using AI:ML

How Can SolGuruz Help You Develop a BNPL App Like Klarna?

SolGuruz is your trusted partner in developing a Buy Now Pay Later (BNPL) app like Klarna, offering expertise, experience, and innovation to bring your vision to life.

SolGuruz understands that businesses with unique demands require unique solutions. To develop a tailored solution, our team works on intricate details to provide a solution that aligns with your business goals and caters to the target audience. Check out the journey of FlexiPe.

With a team of skilled developers and engineers, SolGuruz has extensive experience in leveraging the latest technologies to build robust and scalable applications. From frontend frameworks to backend infrastructure and payment gateways, we ensure that your BNPL app is built on a solid foundation that can handle the demands of a growing user base.

SolGuruz ensures that post-launch support and maintenance keep the application updated and well-secured against current challenges while striving for optimum performance.

A Buy Now Pay Later - BNPL App development case study


BNPL is a win-win situation with all the parties involved. With growing global consumerism and rising demands from customers, the market is revolving around affordability. BNPL apps like Klarna, with their flexibility and convenience, make affordability easy and, with seamless customer experience, these apps lead the competition game.

If you are planning to get a BNPL app, then always shake hands with the experts in the field. A buy-now-pay-later app development company like SolGuruz has proven experience with integrating generative AI services and supercharging your app to great success.

Lead the game with us!

How about SolGuruz Transforming Your Buy-Now-Pay-Later App Experience in 30 Days


What are other examples of buy now, pay later apps?

The BNPL market is very competitive. Other prominent players like Afterpay, Affirm, and Zilch have a presence in the global market.

What are the different repayment facilities that BNPL apps provide?

There are different modes of payment available. Customers can quickly pay via credit cards or bank transfers to pay for the repayment. Availing of many options provides convenience but also requires security to safeguard sensitive information.

How does the Buy Now Pay Later App Development Implement Privacy?

Securing the financial transactions gives the customers a sense of trust. It is important to secure payment integrations. Safety measures like two-factor authentication and SSL encryption can make the security more robust.

Do eCommerce sites integrate BNPL apps?

Yes. Many e-commerce sites or platforms enable this option. It becomes convenient for the customer and is suitable for business. This is a win-win situation as the BNPL apps and e-commerce sites both earn commissions.

How do BNPL apps utilize AI/ML to provide personalized experiences?

Some of the ways in which you can utilize AI/ML - using AI-powered chatbots, AI-powered virtual assistants, generative AI services, prompt engineering to get the best of the user experience, and implementing advanced technologies to supersede the competition.

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Written by

Paresh Mayani

Paresh is a Co-Founder and CEO at SolGuruz, who has been exploring the software industry's horizon for over 15 years. With extensive experience in mobile, Web and Backend technologies, he has excelled in working closely with startups and enterprises. His expertise in understanding tech has helped businesses achieve excellence over the long run. He believes in giving back to the society, and with that he has founded a community chapter called "Google Developers Group Ahmedabad", he has organised 100+ events and have delivered 150+ tech talks across the world, he has been recognized as one of the top 10 highest reputation points holders for the Android tag on Stack Overflow. At SolGuruz, we believe in delivering a combination of technology and management. Our commitment to quality engineering is unwavering, and we never want to waste your time or ours. So when you work with us, you can rest assured that we will deliver on our promises, no matter what.


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