Have you ever found yourself in a tight spot, needing to make a purchase but not having the funds available to pay for it upfront? This is a common situation for consumers globally, especially in today's world.
These situations are uncomfortable and inconvenient, to say the least, but they are the kind of problems that FinTechs work tirelessly to solve. It’s reached a point where the solution is there but innovation is needed for it to consistently adapt.
As we’ve discussed here before, BNPL is one of the biggest advancements we’ve seen in FinTech to date. To jog your memory, buy now, pay later (BNPL) services allow you to make purchases and pay for them incrementally rather than upfront.
These services have gained traction in recent years with increasing demand which has made the market highly competitive. To reap the rewards of this market, BNPL providers need to differentiate themselves and innovate, and the use of custom software is one of the best ways for them to do that.
What is Custom Software?
Many may not know exactly what it means for businesses to use custom software and if that’s the case, then we need to cover that first. Custom software is software tailored to the needs and goals of any organization.
For BNPL providers (or any financial service provider), custom software can perform in ways that simplify and optimize operations, such as handling the processing and installing of payments (just one example).
Custom software solutions can also allow BNPL providers to offer unique and innovative features that set them apart from their competitors (essential). For example, a provider could use custom software to create a rewards program or to offer personalized payment plans based on a customer's specific financial circumstances.
How is it Built?
This all sounds great and useful, but we want to know what makes this possible. So now we’re going to go over some of the coding languages commonly used specifically for creating BNPL services:
JavaScript: JavaScript is always going to be on the list when it comes to your best options for programming, especially in the financial industry. It’s well-suited for BNPL applications because it can be used to create a dynamic, interactive UI and to process payments on the front end of a web application.
Python: Just like Java, Python is a regular popular choice and is one of the most versatile and powerful programming languages best used for data analysis and machine learning. A few specific features that BNPL companies can use Python for include fraud detection, credit risk analysis, and other data-intensive tasks.
SQL: SQL (Structured Query Language) is a domain-specific programming language used for managing and querying relational databases. Simply put: SQL is a powerful and efficient way to handle the storage, retrieval and manipulation of data, especially when it comes to transactional data in BNPL companies. Using SQL, BNPL companies can access and process user data such as their purchase history, order status and payment history to name a few.
Choosing the right programming languages especially when it comes to the automation and streamlining of tasks involving complex data is essential. It not only ensures that the software is optimized for performance and scalability but also supplies the tools and capabilities needed to handle the requirements of business operations.
How It Changes The Customer Experience
When it comes to financial technology in general, a secure infrastructure is foundational to delivering a seamless user experience. If someone has chosen your platform to make their lives easier, you not only want to but need to offer the best possible platform to build that credibility that keeps them coming back. Here are some ways that software allows this to happen:
Checking Out: Custom software enables BNPL providers to provide an easy checkout experience, with low-friction and simplified checkout forms, which make it more convenient for customers when they shop. Additionally, custom software enhances the security of these payments.
Easy-to-use Mobile App: BNPL providers that use software to create a mobile app make it convenient for their users to make purchases and manage their accounts from anywhere. In the United States alone, it is said that 1 in 3 consumers prefer mobile over any other mode of shopping.
Rewards Program: We briefly mentioned it earlier, but you should know that custom software can enable BNPL providers to create a rewards program. How this program works will depend on the business's vision but it can certainly make the BNPL experience more appealing and add value for customers.
The Takeaway
Using custom software has become pivotal for BNPL providers to stay competitive in this market, which is expected to grow at a rate of over 70% annually. By tailoring software to the organization's specific goals, BNPL providers can stand out by offering unique, innovative features. But like we always say, this starts with analyzing your business and what the vision is for it long term. Everything after that is best situated by consulting with a professional team once you’re ready to take action and implement.
Written By Ben Brown
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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.
Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.
