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How to build a BNPL product?

photo of woman holding white and black paper bags

How to build a BNPL product and connect to bank account?

Banks are always looking for new ways to reach consumers and offer them convenient products. One relatively new product in the market is buy now, pay later (BNPL).

With BNPL, banks purchase a product on behalf of their customer and then extend financing to the customer so they can pay for the item over time.

This type of financing can be appealing to customers because it gives them more flexibility in how they make payments.

If you’re a bank considering offering BNPL products, there are a few things you need to keep in mind. In this blog post, we’ll outline how to build a successful BNPL product.

1. Define the problem that you are solving with your BNPL product

2. Research your target market and understand their needs

3. Create a prototype of your BNPL product

4. Test your prototype with potential customers

5. Refine your BNPL product based on feedback from testing

6. Launch your BNPL product to the market

Define the problem that you are solving with your BNPL product

Consumers today have the option to purchase items and services on credit, through BNPL platforms. Unfortunately, many consumers fall victim to overwhelming debt due to the deferred payment system of these services. Through our BNPL product, we are aiming to create a more manageable payment plan for consumers so that they can experience financial security instead of stress and anxiety. We provide more control over payments by allowing customers to customize their repayment plans according to their available funds and credit history. This ensures that customers pay in instalments with an affordable budget while also maintaining their positive credit rating and financial wellness. Our BNPL solution is customer-centric and aims to provide financial freedom for shoppers all around the world.

BNPL can be attached to traditional credit cards program, or offered as a standalone product. To offer BNPL, you must first connect your BNPL product to your bank account. Connecting your bank account to the BNPL program will allow you to accept payments from customers and process them through the system. BNPL providers are responsible for securely processing customer payments, so it’s important to choose a reliable payment processor. Once you have chosen your BNPL provider, working with the right IT team or developers is essential in order to successfully integrate and manage your system.

Research your target market and understand their needs

When building a BNPL product, it is essential to properly research and understand the needs of your target market. Doing this allows you to create a product that genuinely meets their needs and delivers the desired end results.The initial research stage should include gaining an understanding of who your target market is, what their pain points are, what features would be beneficial for them, and how you can differentiate yourself from the competition. A thorough analysis of the current market trends and competitive landscape also helps to inform strategic decisions on product offering and positioning. By taking the time to carefully investigate your target audience, you are better prepared to create a BNPL product offering that will provide meaningful value.

Payments fails usually because of an incorrect or outdated payment information. To reduce these, you must have a secure verification process when customers sign up for your BNPL service. If you are planning to start at BNPL solution we suggest you check also local credit check solutions and payment history.

photo of woman holding white and black paper bags
photo of woman holding white and black paper bags

Create a prototype of your BNPL product

When conceptualizing and designing your BNPL product, creating a prototype is the next step. A prototype helps to provide an initial version of your product that allows for further testing. During the prototype phase, you can experiment with different designs and make modifications as necessary. Ultimately, this process will allow you to refine your idea and get closer to launching a successful BNPL product. This process also provides invaluable feedback from users that can also help shape the final product into something more intuitive and effective.

InvestGlass helps you to build prototype with a no-code solution. We have the expertise to design, customize and integrate your product with payment gateway solutions.

Once you are satisfied with the prototype and its functionality, you can start building out your BNPL solution. It is essential to ensure that you have a reliable IT team or developers who can help you develop and deploy a secure system for processing payments.

Test your prototype with potential customers with no interest fee installments

Testing your BNPL product prototype with real people can provide valuable insights into how a product should be tailored to fit customer’s needs. By getting early feedback from potential customers, you can create an experience that is tailored to their requirements and preferences. This approach minimizes potential risks and increases the odds of successfully introducing a BNPL product to the market. Moreover, testing can help identify potential problems and opportunities, making it essential to do before launching any product publicly.

Refine your BNPL product based on feedback from testing with credit bureaus data

Crafting the perfect Buy-Now-Pay-Later (BNPL) product involves gathering feedback from a variety of sources, and refining based on the insights gathered. This process can require extensive trial and error, but it’s key to building a successful BNPL product. It’s important to consult experts in the field of consumer finance as well as some customer interviews to gain customer perspectives. Once collected, you can use this feedback to further refine your BNPL product until you have achieved a balance that meets the needs of both your customers and your business objectives. By testing and refining frequently you’ll be able to guarantee that your BNPL product is optimized for success!

laptop computer on glass-top table
Data is key

Launch your BNPL product to the market

Launching a BNPL product to the market can seem overwhelming, but following the right steps and gathering the necessary resources will enable you to create a successful and well-run program. Start by selecting an experienced payment platform provider or processing partner, understanding consumer protection laws, optimizing the terms of use for your customers and considering product features that can add value to your customers’ experience. InvestGlass offers a turn key solution to help you launch easily and quickly your BNPL product. The solution offers multiple options such as :

  • future date automation
  • interest rates tracking
  • short term financing campaigns
  • repayment options
  • API connection to credit card companies
  • API connection to virtual cards and participating marchants

After discussing the basics of building a BNPL product, it is clear to see the importance of defining a problem that you’re trying to solve, understanding your target market’s needs and creating a prototype. Your final step should be investing in market research for testing purposes, refining your product according to customer feedback and launching. By following these steps, you can save yourself unnecessary development costs by reducing the risk of developing an unsuccessful BNPL product. Creating a successful BNPL product can be difficult, but it is important to acknowledge the various facets that need to be considered in order to launch a successful product. Taking into consideration all of these steps will set yourself up for success when introducing your BNPL product into the market.