How to Develop a Buy Now Pay Later App Like Klarna? 

In a Nutshell:

 

• BNPL apps like Klarna allow customers to buy products now and pay later in installments, while merchants receive full payment immediately.
• The BNPL market is growing quickly, which creates a strong opportunity for startups to build Klarna-like payment apps.
• The must-have features of the BNPL Klarna-like app are customer, merchant, and admin panels to manage users, payments, and transactions smoothly.
• The Klarna app development process involves market research, choosing a business model, designing the app, building the backend, adding payment gateways, testing, and launching.
• The cost to develop an app like Klarna typically ranges from $25,000 to $200,000 depending on features, integrations, and complexity.
• BNPL apps make money through merchant fees, late payment charges, and interest on installment plans.
• Nimble AppGenie helps startups build BNPL apps like Klarna by planning the MVP, developing secure payment systems, and supporting the product from design to launch.

Many online businesses lose sales because customers hesitate at checkout. High order values, card limits, or lack of trust often stop customers from completing a purchase. 

Buy Now Pay Later apps like Klarna solve this by splitting payments into smaller parts while merchants receive full payment upfront. 

This model is no longer experimental. BNPL already makes up a growing share of global eCommerce, and the market is expected to reach $286.02 billion by 2034. This shows a huge long-term demand and scalability. 

Merchants using BNPL report higher conversion rates and larger order sizes because customers feel more confident finishing their purchase. So if you are a startup founder, this creates a clear opportunity to develop an app like Klarna for steady demand.  

In this blog, we will discuss the process of BNPL application development, like Klarna, the key features you need, costs involved, and challenges to expect.  

So, let’s begin! 

What is a Klarna App? 

Klarna is a Buy Now Pay Later app that allows users to purchase items immediately and pay later in installments or after a fixed period. The user does not pay the full amount at checkout, but the merchant receives the full payment. 

Klarna is one of the best Buy Now Pay Later apps that works as a financial mediator between customers and merchants. It approves the user, pays the merchant, and then collects payments from the customers later. 

The application handles payment schedules, alerts, and settlements. Customers select the BNPL option at checkout, choose a payment plan, and complete the purchase. Merchants offer Klarna as a payment option, get paid, and avoid credit risk. 

The Klarna application is widely used in e-commerce, electronics, fashion, quick commerce, and online services. Basically, where order values are higher, customers choose flexible payments. 

Why Build a Shop Now Pay Later App Like Klarna – Market Research & Analysis? 

The Shop Now Pay Later market shows a huge growth in different regions and industries. To justify this, let’s look at the BNPL statistics given below. 

The worldwide market size of the BNPL industry was worth $44.89 billion in 2025, and it is forecasted to grow to $286.02 billion by 2034.

Market data shows long-term scale. As per EIN Presswire, the global BNPL market is expected to reach $238 billion by 2033, driven by online retail, mobile payments, and younger consumers avoiding credit cards.

At checkout, BNPL may increase conversions by 20 – 30% and also increase revenue by 14%. It is reported that around 54% of Gen Z have used BNPL services in 2024. E-commerce or online shopping is the main place where BNPL is widely used by Gen Zs. 

Klarna is a top industry leader with around 150 million active users worldwide. It has a daily 2 million transactions recorded and increased to 50 million app downloads on the Google Play Store in 2025.

These figures depict that developing an app like Klarna can be profitable for you in 2026. It is supported by real demand, merchant ROI, and long-term market growth. For you, this can be a golden opportunity to integrate BNPL in mobile apps for businesses.  

Key Features for Klarna, like App Development 

To develop an app like Klarna, the feature set must support three goals at the same time. It is easy to check out for users, fast and secure payments for merchants, and full control for the platform owner.

These fintech app features ensure smooth operations, user trust, and long-term scalability of the platform. Please consider the 3-panel feature for your Klarna-like app development, mentioned below.   

Customer Panel 

Merchant Panel 

Admin Panel 

How to Develop an App Like Klarna for Startups? 

Developing an app like Klarna is not a simple or easy task; it is a challenging task.

You need to follow a proper roadmap to build a robust buy now, pay later app like Klarna. Below is the step-by-step process we follow for Klarna-like app development. 

1. Conduct Proper Market Research

If you are a startup founder or a business that wants an app like Klarna, the first thing to do is identify who your users and merchant partners are. You have to understand the niche type and why merchants would offer pay-later options. 

In addition, study your competitors’ apps, such as Affirm, Klarna, and Afterpay, to see what works and where they fall short. Your goal is to find gaps you can fill. Doing this upfront saves budget, reduces risk, and makes sure your solution solves the pain point of users.

2. Choose the Right Business Model 

Decide how your Klarna-like app will generate profits. Most BNPL apps earn from merchant commissions per transaction, late fees, or partnerships. You have to decide on the fee structure, payout cycles, and risk-sharing policies with merchants. 

Now, do you want to focus on high-volume low-value transactions or fewer high-value transactions? The clear pay-later business model helps attract many merchants and plan their cash flow. 

3. Create a UI/UX Design 

Users do not want to feel like they are applying for a loan during checkout. Design visually appealing and intuitive screens that make BNPL fast and attractive. Just make sure to show clear installment options, due dates, and payment statuses for users. 

A clean and intuitive app prototype and flow minimizes errors at checkout. You can even test designs with real users and merchants to find confusion and delays. A beautifully designed and well-thought-out UI boosts conversions and trust, which is good for retention and growth. 

4. Build a Backend for a Klarna-like App  

Do not build a full-featured BNPL platform; you can first build an MVP app that covers only the must-have features. To handle BNPl operations, you can develop a backend to manage onboarding and merchant settlements. 

It is vital to integrate payment gateways to process transactions, handle refunds, and manage failed payments. Also, implement data protection, AI fraud checking, and basic compliance. You can add the advanced features later when the digital payment app 

gets a huge user base and growth. 

5. Testing and Launching the App 

Mobile app testing is a really important step, and do not skip this. Test the “shop and pay later” app like Klarna thoroughly before the launch. You have to make sure security, notifications, and reporting work as expected. Also, fix the errors before onboarding real users and merchants. 

Before launching, prepare app store listings, merchant documentation, and support resources. now launched in a controlled environment to collect feedback and track performance. A structured launch helps avoid failures, builds trust, and scales your app.  

Technology Stack for Klarna-like App Development 

To develop an app like Klarna, you need a solid set of technologies working together.

Choosing the right fintech app tech stack to build an app like Klarna makes development smoother, ensures payments run reliably, and helps your app scale as more users and merchants join.

The table shows the tech stack required for mobile app development, similar to Klarna. 

How Much Does it Cost to Develop an App Like Klarna? 

The cost to develop an app like Klarna can range between $25,000-$200,000 or more, depending on the features, platform, and complexity. A basic MVP version costs less. However, a full-featured BNPL app with multiple integrations and custom workflows costs significantly more. 

If you want to reduce the cost of developing a BNPL app, you have to properly plan your budget upfront. It helps avoid surprises and ensures the app meets both user and merchant expectations. 

Factors Affecting the Klarna App Development Cost: 

• App complexity
• Platform (iOS, Android, or both
• Backend and API integrations
• Security and compliance
• Testing and QA
• Development team location
• Custom features
• Maintenance and support

With the right planning, your best BNPL apps can deliver a strong ROI while staying within budget. If you are budget-conscious but want to test the idea quickly, start with an MVP that includes:

• Basic user onboarding
• Installment scheduling
• KYC verification
• Checkout integration 

This allows you to validate your concept, gather real user feedback, and attract merchants without spending on full-scale development upfront. To know the exact cost, it is vital to consult with the best company to develop a BNPL app like Klarna.   

How to Monetize an App like Klarna?

To monetize your app similar to Klarna, you have to identify which type of model you want to target. There are several ways to start earning revenue while keeping the platform user-friendly and attractive to merchants.

Here are some popular Klarna-like mobile app monetization strategies that you can take into consideration. 

1. Charge Merchants a Commission

Each time a customer finishes buying with your app, you charge the merchant a small amount. Merchants are willing to pay because it raises sales and boosts the average order value. 

This also gives them a huge customer base who prefer flexible payment options. Through this model, you can earn a huge revenue. 

2. Late Payment Fees

If a user misses an installment or delays payment, Klarna makes money by charging them a late fee. This not only encourages users to pay on time, but you can also generate a good revenue from the app. 

3. Interest on Longer Installments 

When customers select longer repayment periods, you can charge a small interest rate on top of the purchase amount. This works best for high-value purchases and flexible payment plans. This gives your app, like Klarna, the ability to earn more per transaction. 

Challenges in Building an App Like Klarna & How to Solve Them 

When you build an app like Klarna, you will face real challenges that can affect your users, merchants, and revenue. Knowing them in advance helps you plan better and avoid costly mistakes.

Here are the main challenges you will face, with possible solutions you must take into consideration. 

Regulatory Compliance

Buy Now Pay Later applications deal with payments, credit, and sensitive user data. Different regions enforce strict rules and regulations around AML, KYC, and data protection. If you ignore them, you cannot operate your app legally. 

How to fix it:

You can learn the fintech regulations of the region you are going to develop an app for. You also have to integrate automated KYC and AML checks and use secure, regulated payment providers. Hiring a compliance consultant makes sure you stay within the law. 

Controlling Credit Risk

There are chances users may skip or delay payments. This can impact your revenue and cash flow. High-risk users can create early losses.

How to fix it: 

You can apply credit scoring and start with low transaction limits for new users. Also, you can gradually raise the limits depending on repayment history. It is vital to monitor behavior to reduce defaults. 

Merchant Trust and Adoption 

Merchants may hesitate to integrate your app like Klarna unless it clearly boosts conversions and guarantees timely payouts. 

How to fix it:

You can provide an easy onboarding, transparent settlements, and analytics dashboards that show sales impact. This shows merchants how Shop Now Pay Later boosts higher order values. 

Ensuring Smooth Payments

Payment failures, confusing checkout flows, or unclear installment tracking can drive users away and harm your application’s reputation. 

How to fix it: 

You can integrate reliable payment gateways, show installment status clearly, and test flows under real-world conditions. Also, you can focus on speed, simplicity, and transparency in checkout. 

Why Choose Nimble AppGenie to Develop a BNPL App Like Klarna? 

If you are planning to develop an app like Klarna, you have to choose the best BNPL app development company that understands payments, merchants’ workflows, and installment logic, not just mobile app development. 

Nimble AppGenie delivers a robust fintech product solution where checkout reliability, settlement tracking, and user repayment flows work in real scenarios. 

Instead of starting with full-scale development, the team helps you define the MVP scope, merchant onboarding flow, and repayment structure first. So the product solves real payment problems from day one. 

For startups planning to launch a Klarna-like app development, this approach reduces risk and helps you launch faster with a product that merchants and users can use.  

Why Nimble AppGenie Stands Out: 

• Real experience in building an app like Klarna 
• BNPL solutions built around your business idea
• Support from planning, design, development, and launch
• Strong focus on secure payments and smooth checkout flow
• Regular updates so you always know the project progress

Conclusion 

Today, Shop Now Pay Later apps like Klarna are becoming a popular payment option for online shoppers. These solutions allow customers to purchase products immediately and pay the amount later in smaller installments. 

We have discussed the steps to develop an app like Klarna that covers essential features your platform should have, ways to monetize the app, and the compliance requirements you need to consider.

Knowing these elements helps you launch a secure and reliable payment solution. Thus, if you are planning a solution like Klarna but need technical guidance, it is best to consult with a dedicated development team. They help you turn your idea into a real product. 

FAQs

Niketan Sharma

Niketan Sharma, CTO, Nimble AppGenie, is a tech enthusiast with more than a decade of experience in delivering high-value solutions that allow a brand to penetrate the market easily. With a strong hold on mobile app development, he is actively working to help businesses identify the potential of digital transformation by sharing insightful statistics, guides & blogs.