How Much Does It Cost to Develop a Buy Now Pay Later App like Zip in Australia?

In the fast-paced digital economy, consumer behavior is evolving rapidly, and businesses are striving to offer more flexible payment solutions.

One of the most disruptive trends in recent years is the rise of Buy Now, Pay Later (BNPL) services. Leading the charge in Australia is Zip, a popular BNPL platform empowering customers to shop now and split payments over time.

If you're a fintech entrepreneur or a business looking to ride the BNPL wave, you might be wondering:

How much does it cost to develop a Buy Now Pay Later app like Zip in Australia? 

In this detailed guide, we will break down every aspect—from features and development stages to cost estimates and hidden challenges—to give you a clear picture.

1. What Is a Buy Now Pay Later App?

A Buy Now Pay Later (BNPL) app enables consumers to purchase products immediately and pay for them in instalments, typically interest-free over a few weeks or months.

These platforms are integrated with eCommerce stores or used directly for in-store shopping.

Popular BNPL apps include:

• Zip (Australia)

• Afterpay

• Klarna

• Sezzle

• PayPal Pay in 4

2. Why Develop a BNPL App in Australia?

Australia is one of the pioneers in the BNPL industry, with a user base that is highly receptive to flexible payments. Zip, Afterpay, and other local players have shown strong market performance.

Market Stats:

• Over 7 million Australians used BNPL services in 2023.

• BNPL transactions accounted for $16 billion in Australia in 2022.

• BNPL apps are especially popular among Gen Z and millennials.

• BNPL integration increases conversion rates by 30-50% for merchants.

3. How Does an App Like Zip Work?

To understand the development cost, you need to understand the functionality of Zip:

1. User Sign-up & KYC: Secure onboarding with identity verification.

2. Credit Assessment: Soft credit check and algorithmic approval.

3. Shop Anywhere: Online and in-store payment with Zip Pay or Zip Money.

4. Repayment Plans: Installment scheduling and notifications.

5. Merchant Integration: Retailers integrate Zip’s API.

6. Transaction Tracking: Real-time expense and billing insights.

4. Key Features of a BNPL App like Zip

1. Customer-Focused Capabilities

Smooth & Intuitive Shopping Interface: A clean, responsive design ensures users can navigate the app effortlessly. Integration with merchant platforms and a frictionless checkout flow encourages repeat use.

Brand Discovery Tools: In-app brand search lets users find partnered retailers quickly. A curated list of supported stores enhances visibility and promotes spontaneous shopping.

Virtual Card Access: A digital card solution empowers users to make secure purchases both online and in-store, functioning similarly to credit cards without the associated complexities.

Cross-Device Availability: Ensure the app is fully functional on iOS, Android, and web browsers. A multi-platform approach supports user convenience and broader market reach.

2. Flexible Payment Solutions

Tailored Installment Plans: Offer options for different repayment structures—such as weekly, bi-weekly, or monthly installments—based on user preference and spending behavior.

Payment Overview Panel: A centralized dashboard allows users to monitor upcoming dues, view transaction history, and track remaining balances—reducing the risk of late fees.

Digital Wallet Integration: Link with Apple Pay, Google Pay, and other mobile wallets to enable quick checkouts and in-store tap payments without manual card input.

Smart Alerts and Notifications: Send real-time updates about repayment dates, reward points, merchant deals, and spending thresholds to keep users in control of their finances.

3. Enhanced Shopping & Engagement Features

Browser Extension Support: Integrate a Chrome extension that enables users to activate BNPL payments during online browsing, enhancing convenience and driving more conversions at checkout.

Loyalty Perks & Cashback Offers: Incentivize usage with exclusive deals, reward points, and cashback from select partner merchants. These benefits encourage brand loyalty and continued engagement.

Utility & Bill Payment Integration: Expand beyond shopping by letting users manage utility bill payments directly through the app. This transforms the BNPL platform into a broader personal finance tool.

5. Technology Stack for BNPL App Development

To build a scalable and secure BNPL app like Zip, you'll need a robust tech stack.

Layer	Technology Used
Frontend (User)	React Native, Flutter, Swift (iOS), Kotlin (Android)
Backend	Node.js, Django, Laravel, Ruby on Rails
Database	PostgreSQL, MongoDB
Cloud Hosting	AWS, Azure, Google Cloud
Payment Gateway	Stripe, Braintree, Adyen
APIs	Open Banking APIs, Credit Score APIs
Security	OAuth 2.0, JWT, SSL, GDPR, PCI-DSS
AI/ML	For credit risk analysis & fraud detection

6. Development Team Structure

The cost depends on the team setup. Here's the ideal structure for a BNPL app:

• Project Manager

• Business Analyst

• UI/UX Designer

• 1-2 Mobile Developers (iOS/Android or cross-platform)

• 1-2 Backend Developers

• QA/Test Engineer

• DevOps Engineer

• Compliance & Security Consultant

You can either build an in-house team, hire freelancers, or go for an outsourcing agency (popular for cost-effective development).

7. Development Process & Time Estimation

1. Discovery Phase (2-3 weeks)

• Market analysis

• Requirement gathering

• Competitor benchmarking

2. UI/UX Design (3-5 weeks)

• Wireframes

• Prototypes

• Visual branding

3. Development Phase (12-20 weeks)

• Frontend and backend development

• API integration

• Core BNPL engine logic

4. Testing Phase (2-4 weeks)

• Manual & automated testing

• Security audits

5. Deployment (1 week)

• Launch on App Store/Play Store

• Production setup on cloud

Total Estimated Time: 5 to 7 months

8. Factors Influencing BNPL App Development Cost

Creating a full-featured BNPL app like Zip or Afterpay involves multiple variables that directly impact the total development cost. From the tech stack to compliance, here are the key cost drivers:

1. Platform Choice

• Single vs. Cross-Platform: Developing for Android or iOS alone is cheaper than building for both.

• Web App Integration: Adding web functionality increases development time and cost.

2. Core Features and Functionalities

The more advanced the features, the higher the cost. Key features that affect pricing:

• Virtual card integration

• Payment scheduling and management

• Digital wallet integration (Apple Pay, Google Pay)

• Real-time notifications

• Chrome extension for browser shopping

• Cashback, rewards, and loyalty programs

• Bill payment support

• AI-based credit risk assessments or fraud detection

3. UI/UX Design

• Custom Design: A user-friendly, branded, and visually appealing interface costs more than using standard design templates.

• Responsive Design: Ensures smooth experience across all screen sizes (phones, tablets, desktops).

4. Backend Development

• Database Setup: Secure data storage for users, merchants, transactions, and payment history.

• Scalability: Building for high user volume from day one requires robust infrastructure.

• Admin Panel: For user management, payment tracking, dispute resolution, and analytics.

5. Third-Party Integrations

• Payment Gateways: Integration with Stripe, Razorpay, or Braintree.

• KYC & Identity Verification: Integration with services like Jumio, Trulioo, or Aadhaar (for India).

• Credit Scoring & Risk Management APIs.

• CRM, Notification, and Email Services.

6. Security & Compliance

• PCI-DSS Compliance: Required for storing and processing payments.

• Data Encryption & Privacy Laws: Adhering to GDPR, CCPA, and Australian Consumer Law.

• Fraud Prevention Mechanisms: 2FA, biometric login, transaction monitoring.

7. Development Team Location

Cost per Hour Varies by Region:

• Australia/US/UK: $80–$200/hr

• Eastern Europe: $40–$100/hr

• India/Southeast Asia: $20–$60/hr

8. Maintenance and Updates

Post-launch support includes bug fixing, new feature rollouts, security patches, and API upgrades—usually 15–20% of the initial development cost annually.

9. Legal and Licensing

Includes costs for:

• Legal counsel

• Financial licenses

• Terms & conditions, privacy policy drafting

Estimated Development Range

• MVP (Basic App): $30,000 – $50,000

• Full-Featured BNPL App: $80,000 – $150,000+

• Enterprise-Grade with AI & Analytics: $200,000+

9. Cost Breakdown: Feature-Wise Estimation

Here’s a breakdown of key features and their estimated cost in AUD:

Feature	Estimated Cost (AUD)
User Registration & KYC	$5,000 – $10,000
Credit Score API Integration	$3,000 – $7,000
Shopping Interface	$6,000 – $12,000
Payment Gateway Integration	$5,000 – $10,000
Instalment Scheduling Engine	$8,000 – $15,000
Notifications (Push, Email, SMS)	$2,000 – $5,000
Merchant Portal	$10,000 – $20,000
Admin Dashboard	$10,000 – $25,000
Fraud Detection & Risk Module	$10,000 – $20,000
UI/UX Design	$5,000 – $12,000
QA & Testing	$6,000 – $10,000
Deployment & DevOps	$4,000 – $8,000

10. Maintenance, Compliance & Ongoing Costs

After launch, your responsibilities don’t end.

Monthly Maintenance: $3,000 – $7,000 AUD

• Server costs

• Bug fixes

• API updates

Annual Compliance: $10,000 – $30,000 AUD

• PCI-DSS & Open Banking audits

• Security certifications

• Regulatory updates

Customer Support Setup: $2,000 – $5,000/month

11. How to Monetize a BNPL App like Zip

BNPL apps don’t charge interest to users. So how do they make money?

Monetization Models:

• Merchant Fees: Zip charges 2–4% per transaction from merchants.

• Late Fees: Users are charged for missed payments.

• Subscription Plans: Premium users can get higher limits or perks.

• Affiliate Revenue: Cross-promote partner stores.

12. Final Verdict: How Much Will It Cost?

Total Estimated Cost to Develop a Zip-like App in Australia:

Type	Range (AUD)
MVP Version	$60,000 – $80,000
Mid-level App	$100,000 – $150,000
Full-featured Zip Clone	$180,000 – $250,000
Ongoing Costs (Annual)	$30,000 – $70,000

13. Tips to Save on Development Costs

• Use Cross-Platform Frameworks: Flutter or React Native for both platforms.

• Outsource Development: Consider teams from India or Eastern Europe.

• Build MVP First: Focus on core features like sign-up, payments, and repayments.

• Use Open-Source Tools: For admin panels and dashboards.

• Opt for Third-party APIs: Don’t reinvent credit assessment engines—integrate!

14. Future Trends in BNPL Apps

Staying ahead of the curve is essential in fintech. Here’s what’s coming next:

• AI-Powered Credit Models: Personalized risk-based approval.

• Crypto BNPL: Use digital currencies for flexible payments.

• Eco-friendly Financing: BNPL apps rewarding sustainable purchases.

• Embedded BNPL: Integrated directly into checkout flows of eCommerce platforms.

• Global Expansion: BNPL for cross-border purchases and travel.

Frequently Asked Questions

1. How much does it cost to develop a BNPL app like Zip in Australia?

The development cost for a BNPL app like Zip ranges from AUD 50,000 to AUD 200,000+, depending on the features, platform (iOS, Android, web), UI/UX complexity, and backend scalability. An MVP with basic features may cost around AUD 50K–80K, while a fully-featured app with virtual cards, rewards, and real-time analytics can go beyond AUD 150K.

2. What are the biggest cost drivers in BNPL app development?

Key factors include:

• Custom feature set (installment plans, virtual cards, KYC)

• Cross-platform development (mobile + web)

• Security and regulatory compliance (PCI-DSS, GDPR, etc.)

• Third-party integrations (payment gateways, ID verification)

• Advanced analytics and AI-based fraud detection

3. Can I reduce costs by launching a basic MVP first?

Yes, launching with a Minimum Viable Product (MVP) is a cost-effective strategy. It allows

you to validate the concept and core features (like installment payment and transaction dashboard) before investing in advanced capabilities like Chrome extensions, cashback engines, or loyalty programs.

4. Does location of the development team affect cost?

Absolutely. Hiring developers in Australia can cost AUD 120–250/hour, while offshore teams in India or Eastern Europe offer rates between AUD 30–90/hour. Many startups go for hybrid teams to balance cost and quality.

5. Are there any hidden or ongoing costs post-launch?

Yes. Beyond initial development, expect ongoing costs for:

• App maintenance & updates

• Server and cloud hosting

• Customer support & admin management

• Compliance updates and legal renewals This can amount to 15–25% of initial development cost annually.

Conclusion

Developing a BNPL app like Zip in Australia can be a lucrative but complex endeavor.

The cost ranges from $60,000 to $250,000+, depending on your feature set, team, and infrastructure.

Given the rapid adoption of BNPL and evolving consumer trends, this investment can yield significant returns if done right.

Ready to build your own Zip-like BNPL app? Whether you're looking for a minimum viable product (MVP) or a full-scale solution, starting with a clear roadmap and expert team is crucial.