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How To Develop a Shop Now Pay Later App Like Tabby? Cost and Features

How To Develop a Shop Now Pay Later App Like Tabby

Imagine this!

You’re browsing through an online store, adding things to your cart, but when you reach the checkout page, the total amount leaves you feeling indecisive. 

You wish you could pay later without any added interest or fees. Well, the good news is that Buy Now Pay Later (BNPL) services make this possible.

As a business owner, integrating BNPL into your online store or app can be a game-changer. In fact, the global BNPL market is supposed to reach a whopping $450 billion by 2026! 

This is because customers love the comfort and flexibility that BNPL provides. One app that’s leading the way in this domain is Tabby. 

This app has generated $50M in a new equity round. Presently, the company’s value is $300M. They provide the best solutions in the market. 

So, if you’re thinking of implementing BNPL in your app or website, you must know the fundamentals of Tabby. This way, you can provide your customers with the best services. Let’s learn how to develop a shop now pay later app like Tabby. 

How Does a Buy Now Pay Later App Like Tabby Work?

App Like Tabby Work

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Users can shop even on a tight budget with an app like Tabby. They need to install the app and place their orders. If they don’t wish to pay now, they can choose the “pay later” option on the checkout page. 

Tabby basically serves as a financial service provider between the seller and the customer. Once customers are inside the Tabby app, they can browse a vast selection of e-commerce stores and brands that accept Tabby Payments. 

Let’s say someone wants to buy a new laptop or some speakers, but the price is a bit too steep. That’s where Tabby comes in. Before purchasing, they can quickly check whether the store they want to buy from accepts Tabby payments. If they do, enter the details and select the “pay later” option at checkout. This will change the payment into an EMI or enable them to shift it to next month. 

Key Features of a Buy Now Pay Later App Like Tabby 

To build a mobile app like Tabby, you must be acquainted with all its features varying from basic to cutting-edge. Here are some features that assisted the application in experiencing record-breaking growth:

Key Features of a Buy Now Pay Later App Like Tabby 

1. Login and Verification

A secure and reliable registration process is one of any app’s fundamental and crucial elements. Users should be able to sign up seamlessly using their phone numbers and complete the registration by providing their national identification number for verification.

Ensuring the safety and security of user information is crucial, and the app must implement robust measures to authenticate users and protect their data.

2. Advanced Payment

Another feature you should consider using in an app like Tabby is an advanced payment option. The app lets the users pay the bill in installments even before the due date. This feature plays a crucial role in making the mobile app highly user-friendly. 

3. Automatic Deductions

Enabling automatic deduction is another key feature that has unlocked the app’s full potential. This function empowers clients to automatically authorize the app to deduct costs from their selected card. 

Besides, users can effortlessly manage multiple cards and switch between them as required. The flexibility provided by this feature ensures a hassle-free and convenient experience for customers.

4. Security

A boost of 30% was observed in fraudulent e-commerce actions. On the other hand, e-commerce sales witnessed a 16% increase. These numbers indicate the significance of inducing security parameters in e-Commerce platforms, especially for secure transactions. 

Embedding strong and compelling security systems in the mobile app is the core of protecting the app against data loss and cyber-attacks. Integrating security solutions, such as two-factor authentication, data encryption, and other regulations, in developing a safe and dependable buy now pay later app. 

5. Guest Feature

Tabby earned a massive population due to its user-friendly and intuitive features. Guest is one such feature. The feature lets the customers use the application without an account, and they can complete the signup process afterward while making payments. 

6. Management of Accounts

A common issue customers face is forgetting their purchase history and associated details. To tackle this problem, the platform has incorporated a feature that displays the customer’s account information, including their:

  • Purchase history, 
  • Payment dates, 
  • And other relevant details. 

This user-friendly interface has gained immense popularity, and the app has become a go-to choice for many customers.

7. Reminders

The next essential feature in a BNPL mobile app is reminders. Reminders are like push notifications. It effectively clues the users about their due dates and pending bill payments, letting them make timely payments and averting overdrafts. The feature sets display rightly by assisting the app in building trust among the users. 

8. Cashback

Research by Mozo indicated that 30% of BNPL app customers buy numerous products from the platform to gain returns like rewards and cashback. Therefore, integrating the cashback feature is another element for an effortless user experience. 

9. AI-based Virtual Assistance  

An AI-based virtual assistant is one of the most robust features to add to a Shop Now Pay Later application like Tabby. This virtual assistant would utilize machine learning and natural language processing technologies to know customer queries and requests, letting users quickly figure out the products they are searching for or receive product suggestions.

Also Read: How to Make an Instant Delivery App Like Instacart

How to Build an App Like Tabby? 

Here’s a skilled approach you must consider while developing a BNPL app like Tabby:

Step 1: Market Research 

One of the first steps you should take while building an app like Tabby is to study the market and your competitors. Before you build your Shop Now Pay Later app, it’s crucial to examine the market to check what other similar applications are available.  

It will offer you an idea about the features already there, and you can find the gaps in the market that you can fill. Here are some things you should focus on:

  • See the top Shop Now Pay Later apps in app stores and check their reviews.
  • Examine their pricing models and determine any fees or interest rates charged.
  • Check social media and forums to know what users are saying about available apps.

Step 2: Choose the Right Technology Stack

Picking up the apt technology stack is important for a successful app. You’ll require to decide on the following:

  • Programming langugage
  • Third-party libraries or frameworks 
  • Database, and more. 

Several elements depend on selecting the right mobile app tech stack. Whether your app is robust or can scale to multiple operating system versions depends heavily on the technology combination you choose for its development. 

Any accurate or sudden, uncalculated judgment concerning selecting nothing but the top technology stack for application will positively affect its existing performance and future growth opportunities. 

Step 4: Choose Trusted Mobile App Development Team 

Another crucial step in developing an app like Tabby is hiring a trusted iOS or Android app development company. The market competition has increased a lot in the last few years. Hence, you must hire mobile app developers with expertise in the latest technologies and trends. Here are the things you should look for: 

  • Reviews by previous clients 
  • How much experience does the team have
  • Number of projects done 
  • Have they worked in your industry? 

Step 5: Design the User Interface 

Do you know the two most crucial factors behind your app’s success? They are user interface (UI) and user experience (UX). Here the UX designers should work with business analysts and product managers to clarify requirements. Whereas UI designers should work with front-end programmers to ensure that the design seems good when implemented. UI/UX both are essential; hence, you cannot ignore any of them.  

Step 6: Develop the Back-end

Your mobile app’s back end is accountable for managing the logic and functionality. It includes handling user accounts, storing data, and processing transactions. Therefore, building a scalable back-end that can manage many transactions and is safe to protect users’ critical information is crucial. Well, when you hire mobile app developers from a trusted firm, you don’t have to worry about your back end. 

Step 7: Develop the Front-end

Your app’s front end is what users communicate with, and it should be user-friendly and responsive. This includes designing screens, forms, and buttons that let users easily navigate and perform transactions. It’s essential to assess the diverse platforms your application will be available on and confirm that it works effortlessly across all devices.

Step 8: Incorporate Payment Gateways

Payment gateways are vital for Shop Now Pay Later applications. You’ll need to connect with famous payment gateways like PayPal or Stripe so users can complete payments with their preferred approach. This must confirm that your app fulfills the security criteria the payment gateway providers need.

Step 8: Test the App

As soon as your app is built, it’s crucial to test it thoroughly to make sure that it works as expected. This contains functional testing to confirm that all features work perfectly and performance testing to confirm that the app can manage huge transactions. It’s essential to recognize and fix any bugs before releasing your app.

Step 9: Launch the App

Launch your app once the testing is done. It’s necessary to hold a marketing plan to draw users and optimize your mobile application for app store optimization (ASO) to enhance its visibility in app stores. Moreover, you should consider gathering user feedback to enrich your app’s user experience and functionality. 

Step 10: Monitor and Iterate

As soon as your app is live, observe user feedback and change the app to enhance its functionality. This possesses making updates to fix bugs, adding new features based on user feedback, and optimizing the app for better performance. You should also monitor your app’s analytics to track its usage and identify areas for improvement.

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How Much Does it Cost Build an App Like Tabby? 

Factors influencing the cost of building an app like Tabby can vary based on several variables. Here are some factors to consider and their potential impact on cost:

FactorDescriptionPotential Cost Impact
Features and FunctionalityThe app’s complexity includes features such as payment processing, user authentication, push notifications, and more.High
DesignThe app’s user interface (UI) and user experience (UX), include logo design, graphics, and overall visual appeal.Moderate
PlatformThe choice of platform, such as iOS, Android, or both, and whether the app is designed for smartphones, tablets, or both.Moderate
Development TeamThe number of developers involved in building the app, their experience level, and hourly rate.High
TimeframeThe timeline for building and launching the app, including any revisions and testing.High
Third-Party IntegrationsThe integration of third-party tools, such as payment gateways and analytics software.Moderate

Based on these factors, the cost of building an app like Tabby can range from $50,000 to $200,000 or more, depending on the project’s scope and the customization level required. Working with an experienced development team that can provide a detailed estimate based on your specific requirements and budget is essential.

Also Read: How Much Does The eCommerce App Development Cost?

Final Thoughts 

The prevalence of smartphones and their integration with digital technology has led to an increased preference for online shopping among individuals who appreciate its advantages. Recently, e-commerce sales have surpassed the mark of $5.2 trillion and will increase in the future. 

So, it’s the best time to begin a venture to build a BNPL app like Tabby. You can hire a top mobile app development company for the same. It will help you deliver the best results.  


What are the pros and cons of BNPL?

  • Pros: Allows customers to purchase items without paying upfront, offers interest-free options or low-interest rates, provides an alternative to conventional credit cards, etc. 
  • Cons: It is the cause of sudden shopping and impacts the civil score of the customer.

Is the BNPL app profitable? 

Apps like Tabby are beneficial since the BNPL app has numerous revenue sources and makes money from users, suppliers, and advertisers.

How does buy now pay later make money? 

Pay Later applications make money via commissions from retailers and customers. Besides, such apps can make money from promotions and advertisements.

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